Dow Jones Indexes and SAM Indexes have granted Chicago Climate Exchange (CCX), the worlds first and North Americas only voluntary, legally binding integrated greenhouse gas emissions reduction, registry and trading system, a licence for the Dow Jones Sustainability World and Dow Jones Sustainability North America Indexes.
The Licence will be exclusive for purposes of listing standardised exchange-traded futures contracts and options on futures contracts where the price or return of such contracts is based on the performance of the Licensed Indexes. The contracts will be listed on CCXs wholly-owned subsidiary Chicago Climate Futures Exchange (CCFE), an environmental derivatives exchange. The target launch date for CCFE products based on DJSI World and DJSI North America will be the third quarter of 2008.
“We are very excited to enter into this partnership with Dow Jones Indexes. The DJSI has become a true benchmark in terms of tracking the performance of sustainability leaders on a global scale. It is a perfect match to CCXs mandate of being the premier exchange in the world to bring together innovation, environmental integrity and sustainability. We believe this new partnership will be a great complement to CCFEs current suite of futures and options contracts covering a wide range of domestic and international environmental products and it shows that market participants recognise the value of a federally-regulated, cleared and transparent market,” says Richard L. Sandor, chairman and CEO, CCX.
“Combining our long-term experience in innovative, comprehensible indexing with SAMs experience in sustainability investing and CCX’s unique expertise in integrating emissions reductions and emissions trading into new environmental products leads to an exciting new business initiative. We are starting off with the licensing of the Dow Jones Sustainability Indexes that enable participants in the growing environmental derivatives market to achieve a highly sought-after additional degree of transparency,” adds Michael A. Petronella, president, Dow Jones Indexes.