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Merrill Lynch Introduces Carbon Emissions Indices

Merrill Lynch Global Research has introduced a new global emissions benchmark, the MLCX Global CO2 Emissions Index, which is designed to provide investors with a clear and balanced insight into the rapidly growing global CO2 emissions market, according to the company.

The MLCX Global CO2 Emissions Index is based on contracts established under the European Union Emission Trading Scheme and under the Kyoto protocol. The MLCX Global CO2 index (MLCXCO2E) gives investors analysis of both schemes, weighting them by their relevance in the global emissions market. Merrill Lynch Global Research plans to increase the number of underlying instruments in the index.

“The weightings of the new MLCX Global CO2 Emissions Index are based on liquidity of the underlying instruments, a crucially important element for investors looking to gain exposure to a new and fast-growing market,” said Francisco Blanch, Merrill Lynch head of global commodities research.