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UPDATE 3-Netherlands cancels EU CO2 permit auction

Published 10/14/2010, 09:30 AM

* Traders say bids visible on data vendor platforms

* New date to be set, 2nd auction had been planned for Nov 8

(Adds new Climex quote, data platform information)

LONDON, Oct 14 (Reuters) - The Dutch government cancelled an auction of 2 million European carbon emissions on Thursday after bid information became visible on data platforms, Netherlands-based emissions exchange Climex said.

"Because information on orders in the auction book was available in the market, the Dutch government decided to cancel the auction," the exchange said in a statement.

The auction of the permits, called EU Allowances (EUAs), was being held between 0800 GMT and 0900 GMT (1000 CET-1100 CET) when Climex suspended trade after sources in the market said they could see auction book order information on the Thomson Reuters data platform.

According to several traders, bids made during the auction were visible as trades.

The auction's rules specify a closed order book, so bidding information should not usually be visible on data platforms.

"We do not normally stream auction data to the platforms, but for some reason that happened. That is our mistake, and it shouldn't have been there," Climex's managing director, Sascha Bloemhoff, told Reuters.

One trader identified several of the trades listed on Thomson Reuters as bids he had entered.

Data platforms in the market are provided by Thomson Reuters and Bloomberg and the exchange is checking whether something similar occurred on the Bloomberg platform, Bloemhoff said.

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Reuters data listed at least 24 trades for a total of 3,363,000 EUAs made between 0805 and 0836 GMT under Climex's spot EUA price feed.

They ranged between 15.00 euros and 15.52 euros and included four large orders of 650,000 EUAs or more.

"Further information on when the 2 million EUAs will be auctioned will be provided at a later stage," Climex said.

The auction was meant to be the first of two spot EUA auctions, with the second planned for Nov. 18.

The Austrian government also plans to auction 200,000 spot EUAs over the exchange on Nov. 8. (Reporting by Nina Chestney; editing by James Jukwey and Jane Baird)

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