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founded by: the earth’s exchange be in safe hands

Bluenext Brochure

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Page 1: Bluenext Brochure

founded by:the earth’s exchange

be in safe hands

Page 2: Bluenext Brochure

1 TheEarth’sExchange

2 WhychooseBlueNext?

3 MemberswhochoseBlueNext

4 StrongDNA-OurFoundingShareholders

5 TheSpotMarkets

6 TheDeliveryversusPaymentProcess

7 TheFuturesMarkets

8 TheFuturesProcess

9 IntegratedOTCServices

10 FastMembershipProcess

11 SpotMembershipProcess

12 FuturesMembershipProcess

13 ContractSpecifications-Spot

14 ContractSpecifications-Futures

15 Fees-BlueNextSpot

16 Fees-BlueNextFutures

17 Disclaimer

18 ExhibitionStand

Page 3: Bluenext Brochure

1 TheEarth’sExchange

Nobody disputes the need to tackle climate change.

The European Union Emission Trading System (EU ETS) is the largest multi-country, multi-sector Greenhouse Gas emission

trading scheme worldwide.

BlueNext enables the trading of carbon dioxide through European Union Allowances (EUAs). One EUA equals one tonne

of the right-to-emit CO2. Overtime the amount of allowances will be reduced, thus reducing the total emissions.

The flipside to this is the Clean Development Mechanism (CDM). This allows industrialised countries to invest in emission

reducing projects in developing countries. These CDM projects generate Certified Emission Reduction credits (CERs). The

CERs are transferable to industrial countries where they can be applied toward emission reduction targets.

Both of these can be traded on a spot and derivatives basis.

Page 4: Bluenext Brochure

2 WhychooseBlueNext?

Wearea“safepairofhands”:

Zero counter-party risk on spot trades ensured by our Delivery versus Payment process.

Protection on all trades on our futures market thanks to LCH Clearnet’s Guarantee Fund.

WearethefastestExchange:

Traders need transactions and their delivery to happen quickly.

It takes only 15 minutes to settle a trade.

Our physical delivery for Futures is the same as an OTC trade; the first working day of December.

Being fast is important as the environment needs a speedy solution.

Wehavethegreatest“Spot”liquidity:

89 members.

97% market share, daily volumes increasing.

WeareTreasuryefficient:

Cash held on account is given interest of EONIA less an 1/8th (Euro Overnight Index Average).

LargeincentivetotradeFutures:

Trading Futures can give up to a 30% discount on Spot fees.

Page 5: Bluenext Brochure

3 MemberswhochoseBlueNext

A2ATRADINGATELABLYCARBONACCORDENERGYAPTBUSINESSGROUPATLASCAPITALFINANCIALSERVICESBARCLAYSBANKB-CONCEPTBNPPARIBASBPGASMARKETINGCALYONLONDONCANTORFITZGERALDEUROPECARBONCAPITALMARKETSCARGILLINTERNATIONALCCIAGCEZCITIGROUPGLOBALMARKETSCLIMATECORPORATIONEMISSIONSCMCAPITALMARKETSCONSUSFRANCECONSUSCREPUSCULEDRESDNERBANKDUBUSE.ONENERGYTRADINGE.ONITALIAPOWER&FUELECOPROGRESSOECOSURECO-WAYEDELWEISSENERGIAEDFTRADING

EDISONTRADINGEDPENERGIASDEPORTUGALELECTRABELELECTRICITEDESTRASBOURGEGLENDESAFRANCEENDESAGENERACIONENDESATRADINGENELTRADEENERGIEOUESTSUISSEENERGYSTOCKMARKETESSENTTRADINGINTERNATIONALFINANCIERESAINTMERRIFORTISBANKFORTISBANKNEDERLANDGASNATURALGASELYSGAZPROMGREENSTREAMNETWORKIBERDROLAGENERACIONIRIDEMERCATOITALCEMENTIJPMORGANMERCURIAMERRILLLYNCHEUROPEMFGLOBALUKMITSUI&COMORGANSTANLEYNATIXISLONDONBRANCHNUONORBEO

PETUMPGEELECTRAPOWEOPRAVDACAPITALRENTRADINGROYALBANKOFCANADAROYALBANKOFCANADAEUROPERWETRADINGSAGACARBONSHELLTRADINGSINDICATUMCARBONCAPITALSOCIETEGENERALESTATKRAFTMARKETSSTXSERVICESSUSQUEHANNAIRELANDTEITHEROYALBANKOFSCOTLANDTOTALGASANDPOWERTOTSATOTALOILUNIONFENOSAV&ACORPORATIONVEETRAVELCANENERGYVERTISVICATVOLTALIAWINDTOMARKET

Page 6: Bluenext Brochure

NYSEEuronext

The historic merger of NYSE Group and Euronext brought together major marketplaces across Europe and the United States whose histories stretch back more than four centuries.

Operates the world’s largest and most liquid exchange group.

Widest array of financial products and services.

Brings together six cash equities exchanges and six derivatives exchanges.

Reaches across time zones and currencies.

4 StrongDNA-OurFoundingShareholders

Page 7: Bluenext Brochure

CaissedesDépôts

World’s safest bank (Global Finance).

State-owned Financial Institution.

Played a key role in the launch of “Environmental Finance”.

Invented “Carbon Credit Investment Funds”.

Perfected Seringas, a carbon registry software.

Page 8: Bluenext Brochure

5 TheSpotMarkets

EUA&CERSpot:

Key Features:

Zero Counter-Party risk.

Delivery versus Payment mechanism (DVP) delivers a transaction in an average of 15 mins.

Powerful integrated electronic trading platform.

Straight through processing.

Price transparency.

Full anonymity.

CERs are filtered when the order is entered.

Page 9: Bluenext Brochure

6 TheDeliveryversusPaymentProcess

cash account

CER account

BUYER

trading account(GV)

cash account

CER account

SELLER

trading account(GV)

EUA account EUA account

CO2CO2

BLX cash transfer account

orderorder

€ €

BLX EUA/CER transfer account

CO2

Page 10: Bluenext Brochure

7 TheFuturesMarkets

Futurescontractswerelaunchedinthemiddleoflastyear:

Market making agreement with key market players.

LCH Clearnet SA has established a Guarantee Fund to ensure the margin deposits on the exchange.

We have the commitment of our founders NYSE Euronext and Caisse des Dépôts to support the futures market.

BlueNext has the same delivery date as OTC.

Page 11: Bluenext Brochure

BUYER’S

CLEARING MEMBER

cash account

EUA/CER account

BUYER

trading account

(GV)

SELLER’S

CLEARING MEMBER

cash account

EUA/CER account

SELLER

trading account

(GV)

TRANSACTIONS

Central Bank

EUA/CER account

LCH.CLEARNET

orderorder

IM VM STIM VM ST

CO2CO2

IM

VM

ST

initial margin

variation margin

settlement

8 TheFuturesProcess

Page 12: Bluenext Brochure

9 IntegratedOTCServices

We have a full suite of OTC services.

Both Spot and Future OTC trades can be registered easily using our web-based interface.

OTC access to our Delivery versus Payment system.

OTC ability to use CER filter.

Specificallyforfutures:

Transactions are registered by a registering broker or by counterparties directly.

The system provides central credit risk management through clearing without the need for complex bank guarantees or bi-lateral margin calls between counterparties.

Helps to reduce treasury requirements by netting OTC positions with existing exchange positions.

Page 13: Bluenext Brochure

10 FastMembershipProcess

Becoming a member of the exchange is straightforward.

Our membership team will guide you through the simple application process.

First, we will need to understand more about you. This will require supplying us with standard due diligence documents.

Our membership team will help you through this process to ensure that no steps are missed.

Second, sign the relevant Trading agreements (Futures or Spot).

Third, for BlueNext Spot you need to sign the EUA & CER account agreements as well as a cash account agreement with Caisse des Dépôts. All procedures are centralised by BlueNext. For BlueNext Futures you need to sign a clearing agreement with the Clearer.

Page 14: Bluenext Brochure

11 SpotMembershipProcess

1 contract 2 product accounts

trading agreement cash account agreement

EUA account agreement

CER account agreement

1 cash account

emissiontrading registry

emissiontrading registry

NB: A settlement bank scheme is also possible.

market rules

id form

Page 15: Bluenext Brochure

12 FuturesMembershipProcess

TRADING MEMBER

CLEARING MEMBER

clearing agreement

application form

cash account

EUA/CER account

id form

market rules id form

admission agreement

PRPDSE

product account agreement

LCH.CLEARNET

Central Bank

EUA/CER account

A Clearing Agreement is required in parallel to a BlueNext contract.

Page 16: Bluenext Brochure

13 ContractSpecifications-Spot

contract

Mnemonic Code

Underlying

Price Tick

Minimum Price

Volume Tick

Minimum Volume

Trading System

Trading Hours

Delivery Place

Delivery & Settlement

BlueNextSpotEUA2008-2012/BlueNextSpotCER

BNS EUA 08-12 / BNS CER

European Union Allowance 2008-2012 / CERs delivered by the Executive Committee of CDM Board, whose projects have been selected following the advice of BlueNext’s Expert Committee

0.01 €/t

0.01 €/t

1,000 tonnes

1,000 tonnes

Continuous through Global Vision (Trayport)

8:00 AM to 5:30 PM (UTC+1)

Registries interfacing with the delivery vs. payment scheme

Delivery and Settlement operated by BlueNext in real timeDelivery consists of the transfer of the Underlying from the seller’s account to the buyer’s account via BlueNext transit account in the French registry for EUA and Swiss registry for CER.

Page 17: Bluenext Brochure

14 ContractSpecifications-Futures

contract

Mnemonic Code

Underlying

Maturity

Last Trading Day

Price Tick

Minimum Price

Volume Tick

Minimum Volume

Trading System

Trading Hours

Delivery Place

Clearing

BlueNextFuturesEUA/BlueNextFuturesCER

BNF EUA / BNF CER

European Union Allowance (2008-2012) / CERs delivered by the Executive Committee of CDM Board whose projects have been selected following the advice of BlueNext’s Expert Committee

Annual contracts with December expiries between 2009 and 2012

Penultimate business day of November

0.01 €/t

0.01 €/t

1,000 tonnes

1,000 tonnes

Continuous through Global Vision (Trayport)

8:00 AM to 5:30 PM from Monday to Friday (UTC+1)

Registries interfacing with the delivery scheme

LCH.Clearnet SA

Page 18: Bluenext Brochure

15 Fees-BlueNextSpot

admission fees

annual fees

trading licence(Global Vision)

Discounted rate for members if monthly volume is >4mt

transactions from Market Orders

transactions from OTC orders if volume is <50kt

transactions from OTC orders if volume is >50kt

delivery

€/pa

€/pa

€/t

€/t

€/t

€/t

€/trade

_

7,500

3,500

4,000

0.017

0.020

0.020

0.010

40

7,500

1,000

4,000

0.030

0.030

0.010

40

highactivity mediumactivity

administrative and technical fees

trading fees

Page 19: Bluenext Brochure

16 Fees-BlueNextFutures

admission fees

annual fees

trading licence

transactions from Market Orders

transactions from OTC orders

legal transactions

transactions from Market Orders and OTC orders

legacy transactions

€/pa

€/pa

€/t

€/t

€/t

€/t

€/t

7,500

3,500

4,000

0.0020

0.0020

0.0

0.0015

0.0

For BlueNext Spot members, the admission fee is not invoiced.

For BlueNext Spot members, the annual fee is not invoiced for 2009.

Existing BlueNext Spot licences can be used for BlueNext Futures. New licence will be charged at the rate of 4000€ p.a.

LCH Clearnet SA

Fees holidays for 3 months

administrative and technical fees

trading fees

clearing fees

Page 20: Bluenext Brochure

17 Disclaimer

The information contained in this document is neither an offering document nor a solicitation. This document is solely

intended as information for eligible institutions, professional investors and is not intended in any country, directly or

indirectly, as a means of soliciting business or offering any financial products to any person. These financial or non

financial products have been registered for sale with the European Economic Area governmental authorities or approved

by any such authority. The financial or non financial products described in this document are traded on the multilateral

trading facility operated by BlueNext. BlueNext is registered as a multilateral trading facility in France.

No section or clause may be regarded as creating any right or obligation. Rights and obligations in respect of financial

or non financial products that are traded on the exchange operated by BlueNext shall depend solely on the rules of

BlueNext.

Although this information has been compiled with great care, BlueNext shall not accept any responsibility for errors,

omissions or other inaccuracies in this information or for the consequences thereof.

This publication and its associated documents can only be published or reproduced with the express approval of

BlueNext.

Copyright © BlueNext SA - All rights reserved 2009.

Page 21: Bluenext Brochure

instant deliveryOur Delivery versus Payment process gives:

Immediate delivery and settlement of your trade

Zero counter-party risk

Simple, Safe Spot Trading

the earth’s exchange

founded by:

+33 1 7303 7300 www.bluenext.eu

18 ExhibitionStand

Page 22: Bluenext Brochure

the earth’s exchange +33 1 7303 7300 www.bluenext.eu