Tradition, one of the world’s largest interdealer brokers in commodity and financial products, is pleased to confirm the first COB trade of Residential Wood Pellets on the Euronext Exchange. The trade, for 10 lots Dec 17 delivery, equivalent to 250 tonnes, was executed by Tradition on the Euronext exchange. This is a significant milestone in the creation of a commoditized market for biomass.
Developed in close cooperation with the biomass community, the Euronext Wood Pellets futures contract has been designed to meet the needs of market professionals looking for portfolio diversification and price hedging tools against fluctuations in the prices of pellets or closely-related products. These fluctuations are mainly caused by changes in economic supply and demand, availability of raw materials and winter weather seasonality patterns.
The contract has been developed to give both producers and end users an opportunity to hedge their exposure to price fluctuations, and provide a clear pricing signal for this fast growing commodity. Until now, all transactions have been executed OTC for physical delivery, and producers or end users have been unable to hedge their exposure in the pellets market.
The Euronext Wood Pellet contract may also be used as a proxy hedge for wood chip producers and users.
About Tradition Green
Tradition Green offers brokerage services in a range of environmental markets, including wood chips, wood pellets, waste wood, recyclable plastics, biofuels, CO2 allowances, EUAs, CERs, VERs, US regional emissions programmes and renewable energy certificates.
In addition to brokerage services, Tradition Green also offers specialist consultancy services within the environmental markets, and project finance for new renewable energy projects in Europe in co-ordination with its London-based affiliate, AllMerus Energy.
Further information about the products covered is available on the new Tradition Green website www.traditiongreen.com
Compagnie Financière Tradition SA is one of the world’s largest interdealer brokers in over-the-counter financial. It employs 2,200 people globally and its activities are overseen by global regulators including the FCA, SEC and CFTC. Compagnie Financière Tradition SA is listed on the Swiss stock exchange. For more information, please visit www.tradition.com.