APX Inc. and CBL Markets partner to launch spot trading of REC contracts

Written By: Stratton Report
January 19, 2017

On January 19, APX, Inc., a provider of infrastructure solutions for environmental and energy markets, and CBL Markets, a spot exchange operator for environmental commodity markets, announced a strategic partnership to launch spot REC contracts on the CBL Markets exchange.

According to CBL Markets, the firm’s exchange enables market participants to spot trade multiple environmental commodities including emissions allowances for the California Cap-and-Trade Program and Regional Greenhouse Gas Initiative. To provide the new spot REC contracts, CBL Markets will connect into the APX’s environmental management account and associated REC registries.

Joe Varnas, CEO at APX observed: “As a pioneer in the REC industry, we are very excited to see REC markets grow in liquidity and transparency. This technology integration is the next step forward for the renewables market, providing a seamless, centralized venue to electronically access RECs.”

CBL Markets emphasized that this new partnership will allow it to become the first trading venue to provide electronically cleared and same-day settled spot US RECs.

Nathan Rockliff, Managing Director, North America at CBL Markets noted: “By connecting CBL Markets to APX’s infrastructure, participants and brokers will be able to access spot REC products efficiently and cost-effectively, via enhanced price discovery and continuous trading contracts. This partnership will help generate much-needed liquidity across renewable energy markets by enabling counterparties to confidently and efficiently transact with one another.”

APX and CBL Markets plan to explore additional partnership opportunities in the global renewable energy markets in 2017.

CBL Markets claimed a record trading month in December.

APX emphasizes that its proprietary grid scheduling, settlement and dispatching systems integrated with SCADA and forecasting are able to provide a full suite for renewable energy generators getting inter-connected. The firm notes that it operates over 13 renewable and carbon registries worldwide, and has more than 2,000 companies as customers in environmental markets with more than 1 billion credits transacted.