Trading and Capital Markets
We act as a market maker in emissions and other environmental commodities, and look for ways to play a constructive role in promoting the development of these markets. By making markets in these products, we enable greater liquidity and market access, which in turn helps our clients to more effectively manage their risks.
We develop and place catastrophe-linked securities that help our clients mitigate financial risk, including from extreme weather events such as hurricanes, winter storms and wildfires. For example, in April 2012, we helped Citizens Property Insurance Corporation, a Florida state-owned company that is an insurer of last resort for Florida homeowners, transfer $750 million in risk of loss from hurricanes to capital markets investors in the form of a catastrophe risk-linked security known as Everglades Re. The firm has placed several weather risk-linked securities and was recognized by Environmental Finance as the "Best Dealer in Catastrophe Risk Management” in 2012.
In Europe, we have been market makers in the European Union Emissions Trading Scheme since its inception in 2005.