The ability to trade large amounts of assets at low costs could be hindered when the size of the orders is concentrated at specific trade sizes. This paper documents evidence of size clustering behavior in the European Carbon Futures Market and analyzes the circumstances under which it happens....

During its trial phase (Phase I), the EU Greenhouse Gas Emission Trading Scheme (EU-ETS) collapsed because of an over-allocation of emission allowances. We evaluate the progress of this market from the trial phase to the next commitment period (Phase II) from a microstructure angle. We show that...