Summary of Currently Available GHG Price Sources

Posted by Candice Wang from Pacific Gas and Electric Co representing PG&E on Tuesday Dec 18, 2012 at 09:44

Product / Product Category / Description / Methodology / Comments, Concerns, Contacts
ICE End of Day (EOD) Report / Index – Volume Weighted Average / The ICE Data End of Day (EOD) Reports contain data sourced directly from the marketplace for trading participants. Information in the reports is obtained solely from trading activity on ICE. These reports are available via email and a secure downloads website.
See ICE Website: / The data covers the period 2:31pm ET on the previous trading day to 2:30pm ET on the current trading day. The report includes data such as volume weighted average price (VWAP), the last traded price, the high, the low, the total volume traded and the last bid/offer shown on the screen between 1:00pm ET and 2:30pm ET. /
  • Prices provided by ICE EOD Reports involve no guesswork, subjectivity, or assessments.
  • ICE EOD Report is a subscription service, not publicly published.
  • EOD CCA price includes trades from prior day and is not consistent with ICE Day Ahead Index Methodology used for electricity,which only includes trades executed on WebICE between 6-11 am Central Time (PG&E spoke with Dan Scarbrough from ICE to ask for change in timing).
  • Dan Scarbrough
    312 836 6738

ICE Settlements Report / Settlements / ICEpublishes a daily settlement price for settling margin requirements for ICE contract holders at the close of each trading day.
See ICE Daily Settlement Price Methodology:
/ Every business day, the ICE settlement committee will monitor all ICE system trading activity including trades, bids and offers for the ICE Cleared OTC products during a settlement window (between 3:45 pm and 4:00 pm Eastern time). ICE volume-weighted trade prices that occur during the settlement window will be the primary consideration for determining settlement prices. /
  • Settlement prices are based on trading during a 15-minute period. This short time-frame allows prices to be prone to market manipulation.
  • In the absence of trades, settlement prices are determined by bids and offers and other unknown determinants.
  • Purpose of the settlement price is for margin posting and not to serve as evaluation of actual trades.

Argus Air Daily / Index – Volume Weighted Average / Argus publishes daily price assessments for forward trade agreements for vintage 2013 California Carbon Allowances (CCA) to be delivered in December 2012 and December 2013.
See Argus Air Daily Methodology:
/ Argus publishes a volume-weighted average of all vintage 2013 December-2013 delivery trades reported and confirmed each day, along with a monthly cumulative volume-weighted average.
Price assessments are based on market data collected by 5 pm E.T. each day. /
  • Determinants of Argus’s price assessments are not explicit. Market data can be subject to biases and erroneous data.
  • Price assessments may not be based on executed trades from a 24-hour period from the prior trading day. PG&E spoke with Mike Ball, Argus Air Daily Editor, who could not provide details on the transaction times of reported trades.
  • Michael Ball
    Air Daily Editor
    202 349 2861

Platts / Index / No existing product. /
  • Platts has not published a CCA index because they arewaiting to see if a spot market for physical CCA products develops.
  • Platts is willing to provide a published price index but believes there is no extra value in providing data that is essentially ICE data.
  • PG&E spoke with Geoffrey Craig, Platts’ Market Reporter for the West.
  • Geoffrey Craig
    Market Reporter
    (202) 383-2011

CME Group/ GreenX / Settlements / CME currently publishes the price of the last settlement.
See CME website:
/ Trades can be made on CME for 24 hours a day. Trading day is 5 pm E.T. to 5 pm E.T.. Settlements price is determined by the most recent transaction. /
  • Due to the inactive market, CME does not have enough data to publish a daily index. CME does plan to provide a daily index once the market becomes more liquid. This daily index would use CFTC-regulated pricing methodology.
  • Settlement price does not reflect executed trades from a 24-hour period and may also not be a recent transaction.
  • PG&E spoke with John Melby from CME/GreenX.
  • John Melby
    Senior Consultant
    858 367 8683

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