This general review paper explores the role of institutional investment in EU ETS. We do so by addressing seven questions sequentially, namely: (1) How does the EU ETS work? (2) What drives the value of carbon? (3) What potential diversification benefits arise from investing in carbon? (4) How...

The trading of carbon dioxide (CO2) emission allowances, or permits, has been established in recent years as one of the primary mechanisms for tackling global warming and climate change. The European Union (EU) has taken an important initiative in this direction by establishing in 2003 the first...

We present the first evidence of the impact of dark trading on adverse selection in an aggregate market. At moderate levels of dark trading, a positive liquidity effect dominates an information acquisition disincentive effect, such that dark trading induces reductions in both adverse selection...

This paper develops a taxonomy of the ‘dark side' of financial innovation and applies it to two recent high-profile financial innovations; exchange traded funds (ETFs) and high frequency trading (HFT). The first half of the paper develops the taxonomy through a review of related literature....