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New trading opportunity at Saxo Bank – CFD on Carbon Emission (CO2)

The present world climate conference has spurred the demand for investments specifically directed at environmental markets, and specifically Carbon related products. If an agreement is reached in Copenhagen to reduce the carbon emissions it will make the carbon emission allowances more valuable and investors might want to be long from the current low levels.


In lieu of many such requests, Saxo Bank has decided to launch a CFD product based on the price of ECX EUA Carbon Emissions. “This will provide investors with increased transparency into the cost and price of Carbon Emissions. The cost of Carbon Emissions has been very strongly related to energy prices such as Oil, Natural Gas and Coal,” says Claus Nielsen, Head of Markets, Saxo Bank, Copenhagen.

“The price of carbon emissions has plunged from €30 a tonne in July 2008 to only €8 in beginning of 2009 as the recession hit across Europe and thus slowed the industrial production. In the last 6 months the price has been ranging between €12 and €16,” says Alan Plaugmann, Head of Futures Trading, Saxo Bank, Copenhagen.

Saxo Bank will offer investors the opportunity to trade in Emissions starting to the equivalent of 25 metric tonnes on a yearly basis. An average Danish household emits approximately 15‐20 tonnes annually on heating, electricity, cars and flights.

If you for instance believe that the overall use of the general average household consumption of energy will be increasing over the next year; one strategy would be to buy the Emissions CFD in order to track prices higher. This implies that investors would be able to see gains from an increase in the demand and hence higher prices.

EXAMPLE :
Saxo Bank offer clients to trade down to a minimum of 25 emission allowances. Each allowance being the equivalent of 1 metric tonne of carbon emission.
You buy 25 metric tonnes of EMISSIONSDEC10 at a price of EUR 14.75. If market rises to 15.75 you stand to make EUR 25. The contract value of EUR 368.75 being price times amount would require a margin of EUR 36.88.
Saxo Bank already offers a broad range of commodities like Gold, Silver, Copper, Coffee, Cocoa, Sugar, Corn, Wheat, Soybeans, Gasoil, Heating Oil, Natural Gas and Crude Oil. All of them are tradable as CFDs.
“We launched many of our CFDs on Commodities over the summer and has since then seen a fantastic interest and trade volume in these contracts,” says Claus Nielsen, Head of Markets, Saxo Bank, Copenhagen.
The two most popular contracts have been Crude Oil and Gold. Gold in particular because investors worldwide used it as a new asset class to hedge further turmoil, inflation and simply just as an alternative to Stocks and Bonds. Gold is up by more than 40% in 2009. Saxo Bank will continue to widen the product range by adding more CFD on commodities over the coming weeks like Gas Oil, Platinum, Live Cattles, Rapeseed and Orange Juice.

About Saxo Bank
Saxo Bank is an online trading and investment specialist, enabling clients to trade Forex, CFDs, Stocks, Futures, Options and other derivatives, as well as providing portfolio management via SaxoWebTrader and SaxoTrader, the leading online trading platforms. SaxoTrader is available directly through Saxo Bank or through one of the
Bank’s global partners. White Labelling is a significant business area for Saxo Bank, and involves the Bank’s online trading platform being customised and branded for other financial institutions and brokers. Saxo Bank has more than 120 White Label Partners and boasts thousands of clients in over 180 countries. Saxo Bank is
headquartered in Copenhagen with offices in Australia, Amsterdam, Athens, France, Italy, Japan, Singapore, Spain, Switzerland, UK, and the United Arab Emirates.

www.saxobank.ch

Jeudi 10 Décembre 2009




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