Secret £1.6bn LCH.Clearnet carbon trading data put on web

LCH.Clearnet, Europe’s largest clearing house, is investigating a major blunder that saw confidential carbon trading data published on the web by its marketing service contractor.

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LCH.Clearnet, Europe’s largest clearing house, is investigating a major blunder that saw confidential carbon trading data published on the web by its marketing service contractor.

The details of 2,118 European Union trades in carbon allowances worth almost €1.9 billion (£1.6 billion), including traders’ names, appeared on the website of Climate Markets, the marketing supplier to LCH.Clearnet, the Financial Times reported.

The information has now been removed from the website. Climate trading data is only allowed to be published if it does not contain the identities of the traders. By using a clearing house, traders expect anonymity to be guaranteed, the FT noted.

“Confidential information has been erroneously published by a third party,” said LCH.Clearnet in statement. The clearing house said it was “looking into the situation” and vowed to take “appropriate action”. Nevertheless, a spokesperson declined to tell the newspaper what action could be taken.

Phil Brown, managing director at Climate Markets, told the FT he took personal responsibility for the incident. The disclosure was a “mistake on my part and, as a result, it was pulled off [the internet]”, he said.

Brown said that “a lot of the information is public anyway”, but “one or two of those trades shouldn’t have been there”.

One trade, worth €764,000, showed a senior trader from BNP Paribas buying from JP Morgan.

All of the data had been put on the website to show the overall volume of trades pushed through the clearing house, Brown said.

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