TORONTO, NEW YORK and LONDON, July 18 /CNW/ - RBC Capital Markets today
announced its global capabilities for greenhouse gas (GHG) emission trading:- RBC Capital Markets is a General Clearing member and market maker on
exchanges around the world, trading on such exchanges as the European
Climate Exchange (ECX), the Montreal Climate Exchange (MCeX), the
Chicago Climate Exchange (CCX), the NYMEX Green Exchange and soon
under the Regional Greenhouse Gas Initiative in the Northeastern
United States. The firm's new emissions trading group also provides
access to over-the-counter (OTC) markets by acting as counterparty,
and accommodates spot and forwards, as well as various OTC
- RBC Capital Markets is a significant player in the Canadian GHG
emissions trading market, with the infrastructure to be able to grow
quickly as U.S. and global demand increases. In addition, RBC's
Futures and Base Metals Group of Global Prime Services provides
execution, clearing and custody of EU Allowances (EUAs) and Certified
Emission Reductions (CERs) certificates for markets in North America
and Europe."Our clients are looking for a firm that can offer an international
solution for our clients to a global problem," said Mike MacBain, head of
Global Debt Markets, RBC Capital Markets. "We are a market making provider,
taking principal risk, providing pricing liquidity and facilitating hedging
for clients. We're building a global book for these markets and becoming a
one-stop shop for our clients' GHG emissions trading needs."
RBC Capital Markets' emissions trading group, under the leadership of
industry veterans Frank Riley and Kevin Paley, operates trading desks in
Toronto and London and executes trades on markets in the U.S., Canada and
How GHG Emissions Trading Works
GHG emissions trading is a system that restricts the total allowable
emissions of greenhouse gases, while giving capped emitters the flexibility to
meet their emission targets in the most economic way. The Kyoto Protocol,
which was developed to reduce greenhouse gases worldwide by setting emission
reduction targets for developed countries, provides the backdrop against which
domestic trading programs have been developed.
In a regulated GHG emissions market, governments set annual targets, or
caps, for greenhouse gas emissions from industry in their regions or
countries. Capped entities are issued allowances equal to their capped amount.
If a capped emitter produces less than the permits allocated to it, the
surplus is a carbon credit that can be sold to another emitter or on the open
market, or retained for future use. Non-capped emitters may also participate
in GHG markets by making voluntary, permanent emission reductions that are
legally recognized by a regulator. Those Emission Reduction Credits or Offsets
can also be traded in the open market. One carbon credit is equal to one tonne
of carbon dioxide reduction.
RBC's Commitment to the Environment
Offering RBC Capital Markets' clients a means by which they may manage
their GHG output is an extension of RBC's longstanding commitment to the
environment. RBC has been named one of the world's top 100 sustainable
companies for four consecutive years, according to the "Global 100" ranking
compiled by Innovest Strategic Advisors. Since 2003, RBC has been a respondent
to the Carbon Disclosure Project (CDP) and has been named a Climate Disclosure
Leader by the CDP and the Conference Board of Canada.
RBC's environmental policy outlines its commitment to offer innovative,
practical and cost-effective financial products and services to promote
environmentally sustainable choices, as well as the enterprise's own
initiatives to manage its environmental footprint.
For full details on all RBC environmental initiatives, please refer to
the RBC Environmental Blueprint: http://www.rbc.com/environment/.
About RBC Capital Markets
RBC Capital Markets is the corporate and investment banking arm of RBC
and is active globally in debt origination, sales and trading, foreign
exchange, infrastructure finance, structured products, metals and mining, and
energy. Its North American platform includes a significant U.S. middle market
investment banking franchise and leading equity, underwriting, sales, trading
and research businesses. Bloomberg ranks the firm as the 12th largest
investment bank globally.
For further information: Gillian Hewitt - Canada, (416) 974-0668,
firstname.lastname@example.org; Kevin Foster - U.S., Latin America and the Caribbean,
(212) 428-6902, email@example.com; Louisa Fairman - Europe and Asia,