TFS implements web-based dealing platform for environmental markets
TFS, a hybrid broker within the financial and energy based OTC derivatives markets, has implemented a web-based dealing platform for environmental products.
May 16, 2003 -- TFS, a hybrid broker within the financial and energy based OTC derivatives markets, has implemented a web-based dealing platform for environmental products.
The platform, TFS-GreenScreen, is the first of its kind in this market. Thus far, it has been well received and the first transaction took place on April 30, 2003, within the UK ROC's Market (Renewable Obligation Certificates).
TFS-GreenScreen is run on software designed by TradeCapture, Inc. (www.tradecapture.com), a leading provider of web-enabled solutions in the field of commodity trading based in Stamford CT. Additional TradeCapture offices are located in Houston, London, Rome and Singapore.
The software is being utilized by TFS's London based environmental desk, the point from which TFS covers all European environmental products. In addition, trades conducted on TFS-GreenScreen can automatically be linked with TradeCapture's ICTS Symphony mid and back-office system, enabling trading companies to more effectively manage their total position, risk, scheduling, credit and accounting needs in one integrated solution.
The implementation of this electronic dealing platform was seen as a timely next step in the evolution of environmental markets and it lays the technological foundation for expanding business as it moves into fungible European wide environmental products.
With TFS GreenScreen, clients may input prices and execute deals across an array of contracts brokered by TFS including: the EU Emissions Trading Scheme, UK Emissions Trading Scheme, ROC's and LEC's (Levy Exemption Certificate) markets, Danish Emission Allowances, the Dutch Green Certificate Incentive Scheme and Swedish 'Elcert' Certificates.
TFS is also monitoring the progress of mandatory programs regularly introduced to the European framework and will expand its electronic initiatives to these areas as demand for them grows.
John Molloy, head of Environmental Products at TFS in London believes TFS GreenScreen will have a key role to play in what will be the most important issues within the environmental sphere: transparency, disclosure and price discovery.
"TFS believes we should offer as many alternatives to our clients as we possibly can. They appreciate the options being provided for them in order to go about transacting environmental deals in a manner that best suits their individual business approach."
But there is more to it than just a screen. Molloy added, "TFS has a message to deliver as environmental markets appear", he stated. "Interactive screen trading will not offer prospective participants a single solution. However, when combined with human interaction, clients obtain a thorough understanding of market depth as well as expert support on all fronts. We have already seen the hybrid model take hold in other TFS businesses and we believe it will add value here too, with immediate effect."