CFTC Designates Chicago Climate Futures Exchange As A Contract Market

The Commodity Futures Trading Commission (Commission) approved the application of the Chicago Climate Futures Exchange, L.L.C., (CCFE) for designation as a contract market on November 9, 2004. CCFE is a Delaware limited liability company whose sole member is the Chicago Climate Exchange, Inc. (CCX). CCX also separately operates an exempt commercial market. The Exchange anticipates that it will initially offer trading of futures on emissions allowances and offer options on these futures at some later date.

CCFE has contracted with the National Futures Association (NFA) to assist it in carrying out various self-regulatory responsibilities with respect to, among other things, market, trade practice and financial surveillance, investigative and disciplinary functions, and dispute resolution. CCFE has contracted with The Clearing Corporation (CCorp), a registered derivatives clearing organization, to carry out clearing and settlement services for the Exchange. The CCFE electronic trading platform will utilize a system licensed from and operated by IntercontinentalExchange, Inc. (ICE). The CCX exempt commercial market has also utilized a system licensed from and operated by ICE since December 2003.

Copies of the Commission’s approval letter and other supporting material prepared by CFTC staff may be obtained by contacting the Commission’s Office of the Secretariat, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581, (202 418-5100).