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Introducing the AlliedOffsets Market Exercise Tracker | by Maria Benzoni | AlliedOffsets | Jul, 2023


AlliedOffsets is happy to announce the launch of a Market Exercise Tracker for the voluntary carbon market.

The Tracker captures volumetric variations of carbon credit score trades over time, releasing an up-to-date metric which sums up present market traits. The objective of the Tracker is to map the place and the way carbon credit are being traded, shedding some gentle on what goes on between the issuance and the retirement of the credit.

Carbon credit are traded each over-the-counter (OTC) and thru exchanges earlier than getting retired. Whereas retirement exercise is tracked by a number of AlliedOffsets’s merchandise and dashboards, buying and selling exercise is by nature much less clear, as trades don’t must be reported on carbon registries. The Buying and selling Exercise Tracker goals at filling this hole, offering worthwhile insights for brokers, merchants and undertaking builders on present market traits.

How does it work?

First, the Tracker gathers collectively volumetric information on buying and selling exercise on a weekly and month-to-month foundation, spanning from 2021 to current. The Tracker considers each buying and selling volumes (i.e. portions of credit traded per transaction) and variety of trades carried out, in an effort to guarantee excessive sensitivity to variations.

Secondly, the Tracker compares volumetric information of every week to the earlier three weeks, defining whether or not trades have been growing or reducing over time. Evaluating information to the earlier weeks ensures a constant and dependable reference interval to attract insights on.

Lastly, the Tracker generates an total % variation which signifies how a lot buying and selling exercise has been elevated or decreased in every time block. P.c variations for the present month can be found at AlliedOffsets’s public pricing web page. Previous buying and selling exercise variations are additionally obtainable on request.

Why are we maintaining a tally of it?

AlliedOffsets goals to extend transparency within the VCM: you possibly can request a demo for additional information on our merchandise’ suite. The Buying and selling Exercise Tracker seems particularly at the place credit are being traded and in what portions, producing up-to-date and freely obtainable info on present volumetric ranges.

Buying and selling exercise is a key sign of market efficiency and it will possibly assist to establish market sentiment, curiosity and alternatives. Lastly, the Tracker can be utilized together with AlliedOffsets’s not too long ago launched liquidity metric, to collect stronger insights into market’s liquidity ranges.

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