Green Exchange LLC (“GreenX”) today announced the date for the migration of the environmental suite of products currently listed and traded on the New York Mercantile Exchange, Inc. (“NYMEX”) Designated Contract Market (DCM) to the GreenX DCM. The European and US environmental futures and options contracts will be transferred from NYMEX to the GreenX DCM for trade date January 24, 2011 granting oversight of and responsibility for the migrated contracts to the new Exchange. NYMEX currently has over 32,000 contracts of open interest across a global customer base in the GreenX products, and the transfer of all client positions from NYMEX to GreenX is expected to occur between trade dates January 21 and January 24, 2011.
Tom Lewis, Chief Executive of GreenX, commented: “Concurrent with the existing futures and options contracts listed and traded on NYMEX, we have been working for over a year to lay the foundation to establish a stand-alone exchange. We recently announced our designation as a contract market by the US CFTC, admitted our first clearing member, and have seen a marked increase in trading volumes of the existing suite of environmental products. We will continue to work with the global carbon trading community to understand their needs and will be making further announcements soon regarding other enhancements to upcoming products and services.”
In addition, GreenX has announced it intends to list a Daily European Union Allowance (EUA) Futures Contract to begin trading on November 1, 2010. This physically deliverable futures contract will initially be listed on the NYMEX DCM, cleared by CME Clearing, and will be transferred to GreenX alongside the existing suite of environmental products. The Daily EUA Futures Contract will trade on CME Globex® and will be available for OTC clearing through CME ClearPort®. This will be the first daily expiration futures contract listed via CME Globex®, and as such represents new functionality within CME Globex®. The Daily EUA Futures Contract will be subject to the fee waiver program currently in place for all GreenX product futures and options contracts, which runs through January 1, 2011.
The Daily EUA Futures contract will concurrently list two consecutive delivery dates for trading: one for the current trading day and another for the next trading day, providing participants multiple short term trading opportunities.
“The addition of the Daily EUA Futures contract will allow customers to use a full range of risk management tools to hedge their carbon exposure. Customers will be able to manage their short-term cash flow demands alongside their forward hedging needs with the existing EUA futures contracts”, said Henrik Hasselknippe, GreenX’s Managing Director for Global Product Development.
