Frequently Asked Questions
FAQs regarding our trading services are provided here.
For more general questions on emissions trading please refer to the NZETS Links page or call the Government helpline 0800 Climate (0800 284 628).
Who is ICAP-NZCX?
ICAP-NZCX is a joint venture between ICAP New Zealand Limited (ICAP), a member of the ICAP Group, a FTSE 100 company, and the 100% locally owned New Zealand Carbon Exchange Limited (NZCX). The local ICAP team of brokers and advisers, backed up by their global carbon network strategically complements the NZCX principals' local market contacts and expertise.
What differentiates ICAP-NZCX from other brokers?
ICAP-NZCX has a presence in Auckland and a team of brokers in Wellington who, through the vast ICAP network, have close contact with commodity and carbon brokers across the globe including Sydney, Singapore and London.
ICAP's existing broker and trading relationships with all of the leading global carbon players, including memberships with all the leading carbon exchanges, enables fast and efficient international linking, market insights and structured solutions for our clients.
The ICAP system is complemented by NZCX Principals' comprehensive experience in climate change and emissions trading policy, environmental law and energy and commodity markets and extensive New Zealand contact network.
What role does ICAP-NZCX play in the NZ carbon market?
ICAP-NZCX's role is to facilitate and broker spot, forward, futures, options and more structured carbon deals on behalf of carbon sellers and buyers. ICAP-NZCX does not take a trading position.
Is ICAP-NZCX regulated?
ICAP New Zealand is regulated by The Securities Commission for all Futures trading, while business practices are also governed by the principles and guidelines of the NZ Financial Markets Association.
As an 80% owned subsidiary of ICAP PLC, ICAP New Zealand adheres to the Group Policies as prescribed by our FSA-regulated parent company.
Who are ICAP-NZCX's clients?
ICAP–NZCX clients include; foresters, emitters with an obligation, industrials with an allocation, PRE allowance project holders, funds, banks.
What emission units does ICAP-NZCX broker?
ICAP-NZCX can facilitate the trade of NZUs (exportable and non-exportable), NZ forestry AAUs, CERs and ERUs.
ICAP-NZCX does not broker voluntary emission units.
What is the minimum volume of units that ICAP-NZCX broker?
ICAP-NZCX can facilitate and broker trades with a minimum parcel size of 5,000 units.
At what stage does ICAP-NZCX become involved with a client/trade?
For sellers wishing to trade units already held in an emissions registry account on a spot basis, ICAP-NZCX can facilitate trades on an immediate basis.
For buyers with an immediate or current vintage requirement, ICAP-NZCX can assist in assessing and sourcing different market compliant options.
For forward or structured deals ICAP-NZCX can meet with you to understand your requirements and assist you to broker these deals.
What will you need before ICAP-NZCX can broker your units?
Before we can broker your units you will need to complete an ICAP-NZCX Client Agreement. A copy can be downloaded here.
What brokerage fees does ICAP-NZCX charge?
ICAP-NZCX charges a market competitive, volume-based brokerage fee per unit successfully transacted.
What contracts or agreements are required to complete a trade?
In addition to the ICAP-NZCX Client Agreement and registry account requirements, we can provide settlement and escrow agreements.
What is the settlement process?
ICAP-NZCX as a broker takes an active part as a facilitator of a trade but does not take a trading position. Hence the buyer and the seller settle directly with each other. However, should escrow and settlement services be needed ICAP-NZCX can provide these for the market counterparties.
What other services does ICAP-NZCX provide?
ICAP-NZCX can provide escrow and settlement services.
The Principals of NZCX can also provide specialist advisory and legal services, through their other businesses. [+] More