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Trading Offset Credits and RECs 53 A more detailed overview of the different trading methods, including examples of providers, is presented in the following section. 6.2.1 Exchanges Exchanges offer efficient, informed, and low-cost platforms for transacting commodities, futures, and derivatives. These electronic platforms have long been used to transact in agriculture, energy, and mineral markets and are increasingly being developed to support environmental markets. Exchanges are electronic platforms that offer market price data and low cost as well as secure transaction services including trading and clearing. The aim is to both increase trans- parency of market pricing and to increase liquidity in global and regional markets. The two most prominent exchanges generally for commodities and related products in the United States are the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE). Many exchanges have been expanding their market coverage to include environmental mar- kets. The European Climate Exchange (EEX) for example, is largely used to trade carbon instru- ments associated with the EU ETS, largely EUAs and CERs. The use of exchanges in environ- mental markets both increases market pricing transparency and liquidity and is anticipated to continue to increase market volumes. A number of United Statesbased and global exchanges that may be of interest to airports both for monetization of environmental instruments and to reference for market pricing data are summarized in Table 12. It should be noted that other international exchanges focus on specific regional markets, including Envex that offers REC and pre-compliance carbon trading in Aus- tralian markets. The open interest and volumes cleared vary significantly across exchanges and are particularly limited for voluntary market commodities. It is anticipated, however, that as the environmental markets mature, the use of exchanges to sell these instruments will grow. 6.2.2 Wholesale Brokers Wholesale brokers and brokerage services facilitate bi-lateral environmental market transac- tions for a fee. Brokers generally do not take title to commodities; rather they link buyers and sellers and also may assist with negotiating terms and conditions of the transaction. Energy trans- actions have long used broker services and many of the prominent energy brokerage houses are now expanding to serve environmental markets. Broker fees for environmental transactions gen- erally range from 3% to 6% of total transaction cost, although other fee-based services may be offered by individual brokerage houses. This transaction fee would be additional to any addi- tional monitoring and verification costs of carbon offset projects. Wholesale brokers generally work best for larger volume or higher value price trades as they offer a lower cost per unit transacted Table 12. Summary of prominent environmental market exchanges. Exchange Volume (Parent Commodities Additional Comments Requirements Company) Chicago Climate CAR-CRT, CFI-US, 1,000 tonnes Carbon offset credit and REC Futures Exchange RGGI, compliance commodities applicable to (ICE) RECs for MA, CT and airports NJ and Green-e eligible voluntary market RECs GreenX EUA, CER, RGGI, 1,000 tonnes Carbon offsets applicable to (NYMEX) CAR offset credits airports