CommTrade Carbon - Frequently Asked Questions
What is CommTrade Carbon?
CommTrade carbon is a platform for matching parties who want to buy and sell carbon credits that can be used within the New Zealand ETS. It is owned by OM Financial Limited, New Zealand’s most active carbon broker and member of the NZX.
Who has access?
Anyone can apply to join CommTrade but acceptance as a registered user is at our discretion. The standard minimum volume is 5000 units in multiples of 1000 thereafter. You must have a registry account with the MED to apply for access to CommTrade.
What if my volume requirement is under 5000?
There are aggregators on the CommTrade website who may be able to buy or sell volumes under 5000 units.
What carbon units can I trade?
Any compliance carbon credits that can be used in the New Zealand ETS. At present – this includes NZUs, NZ AAUs, CERs, and ERUs. Most of these can be traded on a spot or forward basis.
What are the trading hours?
CommTrade’s normal trading hours are from 10 a.m. until 5 p.m. New Zealand time on business days.
How does CommTrade operate?
Buyers & sellers can login and place orders to buy or sell when the market is open. All prices are anonymous - once a buy or sell is matched – the platform will electronically advise you of the trade details and the details of the counterparty.
How are trades settled?
Once a match has been made in respect of your trade you will be electronically advised of the trade details and the details of the counterparty. At this point – you have 3 options to settle. Either directly with the counterparty, via OM Financial or (subject to availability) through an escrow service.
What happens if there is a failure to settle?
CommTrade will stay involved from when the match is made until settlement to help to ensure both parties settle. Whilst, in our experience, it is highly unlikely a trade will fail to settle – CommTrade is not responsible in the event of a failure unless you have agreed to settle directly with us.