What does it mean to ‘make a market’? We have an idea about this in listed markets, with algos happily chatting away at increasingly narrow bid/offer spreads. In illiquid OTC markets this already becomes a different game, one likely best remembered from what fixed income brokerages looked like – a constant telephone game of sharing information and pricing. Where it is key to understand ‘how to price’ the underlying. But what does it mean to really create new markets?
Fabian Roobeek is Director Strategy and Business Development North America for STX Commodities, part of STX Group – a 100% dedicated, pure-play environmental commodities trading firm. After a first period as Chief of Staff to the Founder, through which STX grew from ~50 to ~500+ FTE, he moved to New York a year ago to support the expansion of STX’s North American footprint. Prior to STX, Fabian worked for Bain & Company and PwC. He holds an MBA from IESE Business School in Barcelona, Masters from UCL and the University of Amsterdam and did his undergrad at UC Utrecht. Fabian lives on the Upper West Side with his wife Karen and their two sons, Rasmus and Magnus.
STX is an environmental commodities trading firm, meaning it only trades environmental assets such as renewable energy, renewable natural gas, but also a wide array of for example blending tickets and carbon emission rights. Many of these markets are ‘conceived’ by regulators, searching for a market-mechanism to over time push companies into truly being ‘accountable’ for their share in emissions. STX is on the forefront of what times can best be described as ‘pricing pollution’ – and through its role as market maker in environmental commodities, STX makes environmental markets work.Examples of markets to discuss: Renewable Energy Tax Credits (how can any corporate income taxpayer make money from their tax liability?), Renewable Energy Credits, Renewable Natural Gas, Low Carbon Fuel Standard.
