CARBON CREDIT TRADING – CARBON TRADEXCHANGE
“Carbon Trade Exchange is maximising access to high quality carbon credit trading. We are excited that the … connectivity to Markit Environmental Registry … provides the rigorous tracking and portfolio management tools needed to ensure credibility and increase the value of transacting on CTX.” – Wayne Sharpe, CEO and Founder, CarbonTradeXchange
Client Background
Carbon Trade Exchange (CTX) has been established to aid the growth and transparency of the global voluntary carbon market and become the world’s most inclusive trading platform. CTX aims to maximize the environmental benefits of carbon trading by bringing unrivalled liquidity and reach to the market. CTX engages with brokers and intermediaries, enables major corporations to satisfy carbon neutrality obligations and helps credit originators to sell their credits faster. CTX is London based, with New York and Australian offices.
Client Objectives
CTX is using the Tradeslot trading exchange to achieve a range of commercial and administrative objectives:
- Provide a trusted marketplace where businesses can buy emissions commodities with confidence in the quality and origin of the products being sold
- Integrate with market leading registries
- Provide transparency by tracking credits from their generation and verification through to transfer and eventual retirement
- Track financial flows, including a direct interfaces with major banks
Tradeslot’s Role
- Tradeslot worked with CTX to customize the functionality and user interface of the trading platform to the requirements of a global marketplace.
- Tradeslot worked with Markit Environmental Registry to allow credits owned in Markit to be offered for sale on the CTX platform with one click and ownership to be automatically transferred post-trade.
- Tradeslot worked with major banks to speed up the process of cash deposits being available for trade on CTX.
Business Outcome for Our Client
The online trading platform is central to the function of CTX’s business. The system automatically generates transaction fees from each trade, resulting in a constant revenue stream with minimal associated administrative costs. Automating a range of functions, including the interfaces with registries, and financial service providers allows CTX to offer fast and efficient trading for its members. Working with Tradeslot means that CTX can continue to build the functionality of its trading platform over time to stay ahead in this dynamic market.
Process
Identify Specific Requirements
Tradeslot worked with CTX to determine the key requirements of the platform and categories them into core vs custom features.
Build Custom Requirements
Tradeslot designed and managed the development of custom requirements:
- integration with market leading environmental registry for seamless transfer of ownership
- management of financial flows, including integration with major banks
- online user registration form
- look and feel changes to match CTX branding
Iterative Change Process
CTX was working to a timeline that required some development to move forward concurrently with design. Therefore, a just-in-time, iterative design process was adopted whereby Tradeslot worked closely with CTX on a day-to-day basis to ensure new design elements were incorporated. User Acceptance testing was adopted at appropriate milestones.
Configure System
Tradeslot configured the core system to meet CTX requirements including inventory view, allowing best control for trading multiple products on offer, including filters for vintages, associated industry accreditations and origin of credit automatic currency conversion –
EUR, GBP, USD and AUD as accepted currencies user options for flexibility of term of offer and whole/partial fill real-time index settings 24/7 trading hours.
Configure the Cloud
Tradeslot’s trading platform is based on Microsoft products and frameworks. Deploying the system to Microsoft’s Azure cloud was a natural progression. Cloud hosting ensures rapid scalability and reduced operating costs, allowing the team to focus on functionality, rather than hosting and hardware concerns.
Live Trading
After key configuration and custom requirements were released, CTX began to trade live in June 2010 – after only 3 months and below budget. Development of enhancement features continues.