We examine liquidity effects after the onset of trading in phase II of the EU-ETS for European Union Allowance (EUA) futures contracts. We obtain evidence of long-term improvement in liquidity of the EEX EUA December 2008 futures contract after the commencement of trading in phase II. Our results suggest the application of a new regime of trading rules in Phase II led to the improvements in liquidity.
|Number of pages||8|
|Publication status||Published - 1 Jul 2011|
|Event||8th International Conference on Advances in Applied Financial Economics - Samos Island, Greece|
Duration: 30 Jun 2011 → 2 Jul 2011
|Conference||8th International Conference on Advances in Applied Financial Economics|
|Period||30/06/11 → 2/07/11|