ICE ECX CER

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Background

Some market participants have said the development of a futures contract for credits on ECX is important for boosting competition between exchanges in a maturing carbon market.[1]ECX’s sister company, the Chicago Climate Exchange, launched CCX Carbon Financial Instrument Futures in 2007.

Contract Specifications

ICE ECX Carbon Financial Instrument CER futures
Exchange ECX
Settlement Physically delivered
Contract Size One lot of 1000 Certified Emission Reductions (CERs) (i.e. units issued pursuant to Article 12 of the Kyoto Protocol and the decisions adopted pursuant to the UNFCCC to the Kyoto Protocol with the exception of allowances generated by hydroelectric projects with a generating capacity exceeding 20MW, LULUCF activities and nuclear facilities). Each CER being an entitlement to emit one tonne of carbon dioxide equivalent gas.
Pricing Unit Need pricing unit!
Tick Value €0.01 per tonne (i.e. €10.00 per lot)
Contract Months Contract will be listed on a quarterly expiry cycle with March, June, September and December contract months such that 17 contract months will be listed from December 2008 to December 2012. For the avoidance of doubt, the first tradeable contract month will be December 2008.
Last Trading Day The day of expiration for the contract will be the last Monday of the contract month. However, if the last Monday is a non-business day or there is a non-business day in the four days following the last Monday, the last day of trading will be the penultimate Monday of the delivery month. Where the penultimate Monday of the delivery month falls on a non-business day, or there is a non-business day in the four days immediately following the penultimate Monday, the last day of trading shall be the antepenultimate Monday of the delivery month. The exchange shall from time to time confirm, in respect of each contract month, the date upon which trading is expected to cease.
Note: This contract is electronic ONLY -- no open outcry
  No Open Outcry Electronic
Trading Hours N/A The contract will trade daily from 07:00 hours to 17:00 hours (London Local Time).
Ticker Symbol N/A N/A
Price Limits N/A N/A

Notes

The planned launch date for the ICE ECX CER futures contract is March 14, 2008. Trading will occur on the ICE Futures electronic trading platform known as the ICE Platform accessible via Web ICE or through a conformed Independent Software Vendor (ISV).

The contract will be physically-delivered by the transfer of CERs (certified emission reduction units) from the seller to the buyer.[2]

References

  1. "European Climate Exchange to launch CER futures". Reuters.
  2. Press Release. ECX.