Nodal Exchange and IncubEx are pleased to announce a record volume day and week in the Washington Carbon Allowance (WCA) market as well as the first WCA options trade.
Nodal posted a record daily volume of 565 lots (equal to 565,000 WCAs) on April 13th and 815 WCA lots for the week representing 815,000 metric tons of greenhouse-gas emissions. Last week also marked a key milestone, as IVG Energy Ltd, a leading brokerage of environmental commodities and markets, brokered the first-ever WCA option trade on Nodal. The option trade was executed on WCA December-2023 $50.00 puts.
In collaboration with IncubEx, Nodal was the first to list WCA futures and WCA options contracts, which correspond with the Washington “Cap-and-Invest” program, the newest carbon market in North America. The program, launched on January 1, 2023, will gradually cover about 75% of the state’s CO2 emissions.
“We are thrilled to be the first to broker an options trade in the WCA market,” said Scott Cunningham, Environmental Broker at IVG Energy. “This is a major step forward for the industry and our firm and will help drive more investment into sustainable products and projects. As the environmental markets continue to grow and evolve, we are committed to providing innovative solutions that meet the needs of our customers. The trade also highlights IVG’s evolving position as a leader in the environmental markets, providing its customers with innovative solutions and opportunities to achieve their sustainability goals.”
“The first WCA options trade marks a key milestone in the development of the Washington carbon market and we thank IVG for brokering this transaction,” said Dan Scarbrough, President and COO at IncubEx. “This initial transaction illustrates the suite of futures and options risk management tools being utilized by a growing universe of participants on Nodal Exchange in this new market.”
“Nodal and IncubEx are at the forefront of today’s environmental markets in terms of product development, price transparency, risk management and capital efficiencies,” said Paul Cusenza, CEO of Nodal Exchange. “We’re proud of the growth we’ve seen across these markets and the support customers continue to show for new markets and innovative products.”
