Carbon Trading to Protect the Environment

Auctioning of Carbon Compliance Units (CERs, ERUs, EUAs, AAUs)

Key Features

• Secure and transparent easy access electronic internet based auction platform
• Spot CERs, EUAs, ERUs or AAUs to be offered for sale in individual auctions
• Buyers and sellers participate anonymously
• All auctioned units are issued and pre-delivered into escrow mitigating delivery risk
• Volumes of 500,000 -- 5,000,000 to be offered for sale per auction event
• Auction events intended to run for no more than two hours
• SPOT delivery and payment cycle within ten business days
• Sellers aggregate units to present a more attractive volume to the market
• Buyers may bid for small or large volumes of units and compete on a level playing field
• Buyers may bid for either a part or all of the total units being sold
• Fast and efficient transaction structure
• Low transaction costs
• Buy and sell back trading in subsequent auctions via escrow prior to taking delivery (pre-ITL)
• Totally transparent sale and purchase procedure
• A single contract gives access to many buyers and sellers:
  No ERPA or further legal work required.

How does the auction work?

A volume of units is offered for sale by auction. The volume being offered may have been sourced from one single seller or have been aggregated from a number of sellers. There is no upper limit to the number of units that may be offered for sale using the auction. CantorCO2e will aim to achieve a minimum volume of 500,000 and a maximum volume of 5,000,000 units per auction.

CantorCO2e intends to market each auction for some time in advance of the auction event. Consequently, a seller wishing to participate in an auction is required to commit at least ten business days prior to the auction date and pre-deliver to the escrow agent (Cantor Fitzgerald Europe) the units to be sold at auction. Buyers will then have enough time to register as participants in the auction and to take all the necessary preparatory steps in order to be ready to participate in the forthcoming auction.

At the time of publication it is anticipated that an auction will last no more than two hours. Buyers submit sealed on-line trade bids to the auction and allocations are made at auction close at a uniform clearing price to all successful buyers.

Screenshots of the CantorCO2e auction platform

FAQs

How often will CantorCO2e offer units for sale by auction?
Auctions are held as units become available to sell. CantorCO2e will make announcements to the market ahead of forthcoming auctions.

How long will an auctions last?
Each auction is intended to run for a period of two hours. Full details of auction times and durations will be published on the auction site.

What is the minimum volume that I can buy?
Minimum volumes may fluctuate from auction to auction as decided by CantorCO2e, but it may be possible to bid for as few as 1,000 CERs if so required.

Is the auction open to anyone?
Auction participation will be limited to corporate entities that comply with the regulatory checks that Cantor CO2e will run on each applicant as required at law and/or by theFinancial Services Authority. CantorCO2e reserve all rights in relation to decisions relating to eligibility of participants.

How do I register to take part in an auction?
For more information about participation and for a full set of auction participation terms and conditions please contact us:

by telephone: +44 20 7894 8333
by e-mail: auctionhelp@cantorco2e.com