CME Group has launched four new In Delivery Month European Union Allowance (EUA) and Certified Emission Reduction (CER) futures and options contracts that will be available through CME ClearPort and the New York trading floor.
Clearing services will be available through CME ClearPort. The futures contracts will be available beginning on 21 June for trade date 22 June and the options contracts on 22 June for trade date 23 June. These contracts are listed for trading by NYMEX through CME ClearPort, and are subject to NYMEX rules and regulations.
“These new green products reflect the needs of the customers who trade in this dynamic and evolving space,” says Rick Redding, managing director of Products and Services, CME Group. “We have been working with the industry to develop products that will mitigate risk, while providing opportunities to trade in their venue of choice, utilizing both our electronic and open outcry platforms.”
The EUA and CER contracts will be 1,000 units in size with a minimum price fluctuation of euro 0.01 per EUA. The futures contracts will expire on the last Monday of the delivery month. The European style options contracts will expire three business days prior to the expiration of the underlying futures contracts.
The new contracts and their commodity codes will be: in delivery month EUA futures (6T); in delivery month EUA options (6U); in delivery month CER futures (6S); in delivery month CER options (6P). The termination and delivery dates differentiate these contracts from the existing EUA and CER futures and options contracts, which will continue to be available for trading.
It is intended that these products will be listed for trading as part of the Green Exchange venture once that venture has sought and achieved appropriate regulatory status. Green Exchange venture will be working with U.S. and European regulators and intends to seek recognition in the U.S. as a designated contract market and approval from the FSA in the U.K. CME Group is one of the founding members of Green Exchange Holdings LLC.
L.D.