Exchange to Offer Sulfur Dioxide Cash Market by the End of 2004
Chicago Climate Exchange, Inc. (CCX), the first multi-national and multi-sector marketplace for the reduction and trading of greenhouse gas emissions, announced the creation of a futures subsidiary, Chicago Climate Futures Exchange (CCFE). CCX also unveiled plans to launch a cash market for sulfur dioxide allowances by the end of 2004. CCX currently offers a cash market for carbon financial instruments (CFIs).
Details on the creation of the futures subsidiary are subject to approval from the Commodity Futures Trading Commission (CFTC). CCFE has applied for "designated contract market" (DCM) status with the CFTC. CCX has entered into an agreement with National Futures Association (NFA) as the regulatory services provider for the self-regulation of CCFE. The Clearing Corporation will provide clearing services for CCFE. IntercontinentalExchange, Inc. will continue to provide and service CCX's electronic trading platform for both the cash market and the futures market.
The new cash market product will be called a Sulfur Financial Instrument (SFI). SFIs are based on emission allowances used for compliance with the Acid Rain Program established by the Clean Air Act of 1990. Currently there is only an over-the-counter market for sulfur dioxide allowances.
Dr. Richard L. Sandor, Chairman and CEO of CCX, said, "Exchange-traded spot contracts on CCX SFIs will offer participants the ease, transparency and standardization of an organized exchange. This announcement marks a new frontier in the development of CCX as the leader in environmental derivatives."
About Chicago Climate Exchange, Inc.
CCX is a self-regulatory exchange that administers the world's first multi-national and multisector marketplace for reducing and trading greenhouse gas emissions. CCX represents the first legally binding commitment by a cross-section of North American corporations, municipalities and other institutions to establish a rules-based market for reducing greenhouse gas emissions. CCX enables members to receive credit for reductions, and to buy and sell credits to determine the most cost-effective means of achieving emission reductions.
Loading...