.jpg)
Chicago Climate Exchange®, Inc. (CCX®) announced today that it has entered into a Joint Marketing Agreement with Dow Jones Indexes to co-brand, calculate, market and license the Dow Jones/CCX Emissions Indexes based on European carbon, U.S. carbon and U.S. SO2 and other indexes to be developed by CCX. Dow Jones Indexes will be the exclusive distributor and licensor of the Dow Jones/CCX Emissions Indexes.
The Dow Jones/CCX Emissions Indexes are available for licensing as the basis of domestic and international structured products and other derivatives, including potential futures products.
"Combining our long-term experience in innovative, comprehensible indexing with CCX's unique expertise in integrating emissions reductions and emissions trading leads to an exciting new business initiative. We are starting off with emissions indexes that enable participants in the carbon allowances market to achieve a highly sought-after additional degree of transparency," said Michael A. Petronella, president Dow Jones Indexes.
“The Joint Marketing Agreement on the family of CCX, ECX and CCFE products with Dow Jones Indexes signals our continued commitment to create new innovative markets in the environmental space,” said Dr. Richard Sandor, Chairman and CEO of CCX. “This suite of new index products will broaden the pool of participants while furthering transparency. Our alliance with such a world-renowned brand as Dow Jones is a win-win for the growing worldwide emissions market.”
Today’s announcement follows CCX’s March 14 notice that Dow Jones Indexes and SAM Indexes granted CCX a license for the Dow Jones Sustainability World Index (DJSI World) and Dow Jones Sustainability North America Index (DJSI North America). That license will be exclusive for purposes of listing standardized exchange-traded futures contracts and options on futures contracts where the price and/or return of such contracts is based on the performance of the licensed indexes.
About Chicago Climate Exchange, Inc. and Chicago Climate Futures Exchange
CCX is a financial institution whose objectives are to apply financial innovation and incentives to advance social, environmental and economic goals. CCX, which began trading in 2003, is the world’s first and North America’s only legally binding rules-based greenhouse gas emissions allowance trading system, as well as the world’s only global system for emissions trading based on all six greenhouse gases. CCX members are leaders in greenhouse gas management and mitigation, including offset providers and offset aggregators, and located throughout the United States. CCX members derive from all sectors of the global economy, including the public sector, and emissions reductions being achieved through CCX by major utilities, corporations, cities, states and counties, are the only reductions in North America being achieved through a legally binding compliance regime, subject to independent third party verification provided by FINRA and price transparency. The founder, Chairman and CEO of CCX is economist and financial innovator Dr. Richard L. Sandor, who was named a Hero of the Planet by Time magazine in 2005 for his founding of CCX, and in 2007 as the “father of carbon trading.” For a full history of CCX, full roster of CCX members, daily prices and other Exchange information, see www.chicagoclimateexchange.com.
Chicago Climate Futures Exchange™ (CCFE™), a wholly-owned subsidiary of CCX, is the world's first and leading environmental derivatives exchange. CCFE currently offers standardized and cleared Sulfur Financial Instrument (SFI) futures and options contracts and Nitrogen Financial Instrument (NFI-OS) futures contracts based on mandatory cap and trade programs created under the Clean Air Act Amendments of 1990, making it the world's largest exchange for trading criteria pollutants. Market participants are able to secure price transparent, standardized futures and options contracts on an anonymous electronic trading platform. The availability of effective hedging tools offered on CCFE, including prompt and deferred years for both futures and options has increased liquidity while easing volatility in the SO2 market.
CCX, a US corporation, launched its trading platform in 2003. In 2005, CCX launched the European Climate Exchange (ECX), now the leading exchange operating in the European Union Emissions Trading Scheme. Since 2006, both CCX and ECX have been owned by Climate Exchange Plc. (CLE.L), a publicly traded company listed on the AIM of the London Stock Exchange, whose Chairman is Richard L. Sandor.
