The Clearing Corporation (CCorp) says it will provide clearing and settlement services – including acting as the central counter party (CCP) – for the Chicago Climate Exchange’s proposed futures exchange.
Following approval as a designated contract market by the Commodity Futures Trading Commission (CFTC), the Chicago Climate Futures Exchange (CCFE) plans to list futures contracts based upon emission allowances.
The Chicago Climate Exchange (CCX) operates a market-based emission reduction and trading platform. All trades occur on the internet-based CCX Electronic Trading Platform, which is linked directly to the CCX Registry. The Registry consists of member accounts and is the official holder of the record and transfer mechanism for the exchange. Continuous electronic trading of greenhouse gas emission allowances and offsets began on 12 December 2003.
“The Clearing Corporation is pleased to provide clearing services to the innovative Chicago Climate Futures Exchange, which is making a real contribution toward pollution reduction,” says Dennis A. Dutterer, President and CEO of CCorp. “This agreement furthers our long-term business plan to provide state-of-the-art clearing and risk-management services to new and emerging derivatives markets.”