Merrill Lynch New Energy Technology Plc

UK emissions trading exchange owner Climate Exchange announced rapidly-increasing volumes on the European Climate Exchange, which passed the one million tonnes of carbon dioxide futures per day mark in June. The exchange has traded in excess of 10 million tonnes of carbon dioxide futures contracts since its launch in April, and continues to benefit from responses to Kyoto as well as a growing awareness among companies of their environmental footprint.

Anybody watching this one?

Can anyone tell me why this stock has such huge daily swings on very little volume? Have been watching it for a while but can't see any reason for the price swings. Maybe it's difficult to trade??? Bid / offer spread is not too great. Opinions gratefully received.

41million shares issued but mainly held by institutions with some share lock ins in force at present. Some institutions are also members of the exchange so probably in for the long run.

EK is very short!!

int results out 19 sep 07.

High volume traded yesterday. Looks like an institution picking these up cheap. Lets hope the start of a recovery on this one.

CLE was informed today that Richard Sandor, Chairman of the Company has sold 250,000 shares

Emissions exchange operator Climate Exchange moved into profit in 2007 as revenues surged and it said growth in 2008 has been even more exciting.

It made a pro-forma pre-tax profit of 850,000 in 2007 compared with losses of 5m the year before. Revenues jumped to 13.6m from 3.9m.

The company, which operates the Chicago Climate Exchange, the Chicago Climate Futures Exchange and the European Climate Exchange, said it was helped by a surge in volumes on all three exchanges.

Personally I think Trading emissions plc (TRE) is a better long term bet.

I HOLD BOTH.

A very interesting article in the ft regarding the future price of carbon :

http://www.ft.com/cms/s/0/ce67fbe0-5333-11dd-8dd2-000077b07658.html

CLE spread 1800 bid, 1844 offer! What's that all about???

Lehman Brothers shuts carbon trading desk - AFX


LONDON, Sept 15 (Reuters) - Lehman Brothers shut down its carbon emissions trading desk after the bank filed for bankruptcy protection, a source close to the company told Reuters on Monday.

'Everything's stopped, blocked ... it's a bit anarchic,' he said.

Lehman declined to comment on the matter.

The U.S. investment bank filed for Chapter 11 protection on Monday while Merrill Lynch, also plagued by toxic, mortgage-related debt, agreed to be bought by Bank of America . Merrill's carbon desk was open as usual on Monday, a source familiar with the bank said.

Lehman's membership on the IntercontinentalExchange, which includes access to the European Climate Exchange, the world's largest emissions trading exchange, was suspended, an ICE spokesman said.

This effectively disallows Lehman from closing any open positions on its trading books.

LCH.Clearnet, which handles clearing for ICE, also restricted Lehman's trading, citing the company as a 'defaulter', the clearing house said in a statement.

'Lehman's were relatively small, they were late coming into the (emissions) market,' one London-based broker said, adding that Lehman is thought to have been more involved in the Clean Development Mechanism (CDM) market than in day-to-day trading.

In the $13 billion CDM market, a trading scheme under the Kyoto Protocol, companies from rich nations can invest in clean energy projects in developing countries and in exchange receive offset credits, called CERs, which they can use toward emissions targets or sell for profit.

Lehman has stakes in up to 10 CDM projects, the first source said. 'There are some very good projects in the pipeline,' he said, adding that they would probably be sold by liquidators.



BACKFIRE

The projects, mostly in China, are expected to generate 10 million to 12 million CERs by 2012, worth up to 275 million euros ($385.4 million) at current market rates.

The source said the projects are of high quality and not involved in the destruction of hydrofluorocarbons (HFCs), a lucrative trade considered controversial by many in the emissions market.

One potential implication of Lehman's demise is the effect felt by those on the other side of these CER deals, often small companies in developing countries.

'If Lehmans have entered into direct contracts with counterparties in the developing world, chances are these contracts are probably not that complex,' the broker said.

'Provisions in the case of bankruptcy probably won't have been included unless Lehmans introduced them unilaterally ... to protect themselves in case of the small (project owner) declaring bankruptcy,' he said, adding that these provisions may now have backfired against Lehman.

European emissions markets were lower on weakness across the global energy markets on Monday.

European Union Allowances for December delivery lost one euro or 4.2 percent at 22.90 euros a tonne on volume of 2,300 lots traded. Benchmark CERs lost close to three percent at 19.20 euros a tonne.

Not seen this level (620p) since spring 2007.
Nothing that I can see to justify this drop in the sp.

Climate Exchange plc

Notice of Preliminary Results

"Climate Exchange plc, the leading global environmental exchange operator, will announce its preliminary results for the year ending 31st December 2008 on Thursday 12th March 2009."

02/03/09 CLE

February Highlights:www.exchange-handbook.co.uk

* "Monthly volumes reached a new all time high of 447 Mt, surpassing the previous record of 412 Mt in October 2008 (which had 3 extra trading days). The monthly volumes are over 3 times the levels traded in February 2008

* Two consecutive daily volumes records were set on 18th and 19th February with 39.3 Mt and 41.6 Mt contracts traded on the respective days. Average daily volumes in February were in excess of 22 Mt (22,000 lots)

* Prices saw further downward pressure with high volatility on the individual contracts. Additionally there has been noticeable volatility in the EUA/CER spread during the month, ranging from 1.28 to 0.30.

* Open interest continued its steady growth, with the combined EUA & CER futures and options total now standing at 451,705 contracts

* The new T+1 contracts will be launched on 13th March - considerable interest has been shown from across the trading community."

Great news and thanks for the update, thiss can be a very volatile stock but i see real potential

I am trading this stock pretty regularly now in small amounts. Although the bid/offer spread can sometimes be unattractive, the stock is certainly volatile enough to make trading worthwhile, imo. I will also hang on to some of my stock just in case the sp reaches the 1800/1900p level.
The only difficulty for me is understanding the complex reasons for the movement in the share price over a period of time. A bit of a learning curve.

Did you see Harbinger Capital Partners Master Fund took a 20% stake in cle two days ago. Monday could be interesting....

There are 2 RNS which came out within 30 mins of each other, but my reading of them is that a large quantity of shares have been shifted from one fund to another, but doesn't change the overall holding for Harbinger. I may be wrong.

Business Financial Newswire
"Chicago Climate reveals a record month for the Chicago Climate Futures Exchange in June with 176,408 contracts traded - a 33% increase over its previous record set in April.

And 463,149 contracts were traded on European Climate Exchange - the third highest month on record.

Average daily volume surpassed 21,000 contracts, representing a 57% year-on-year increase.

But contracts on the Chicago Climate Exchange fell 73% to 22,703.

Chairman Richard Sandor said: "Solid growth continued as CCFE saw record trading volume and open interest during the month of June.

"The policymaking process in the United States took an important step forward with passage of the American Clean Energy and Security Act in the House.

"The Bill recognises the benefits of using a market mechanism to achieve cost-effective emissions reductions.

"As the debate moves to the Senate, the experiences CCX and CCFE have gained in operating a cap-and-trade system over the past six years in the US will serve as an important resource and model."