First U.S. Emission Swaps Brokered

The first emissions swaps have been traded in the U.S., which participants view as the beginnings of a financially settled over-the-counter market. Last month, Cantor Fitzgerald Environmental Brokerage Services and Evolution Markets each brokered a fixed-to-floating emissions swap of 15,000 and 2,500 sulfur dioxide allowances respectively. The deal was priced off the Argus Air Daily index. Cantor Fitzgerald is working on another SO₂ swap, according to Craig Poler, manager of emissions and fuels in New York.