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BNP Paribas Commodity Futures Inc, a global futures commission merchant and part of the BNP Paribas group, today became the first Green Exchange LLC (Green Exchange) clearing member, enabling them to clear customer business upon the launch of the new Exchange. All Green Exchange environmental futures and options contracts will clear at the Chicago Mercantile Exchange’s clearing house, and all CME/CBOT/NYMEX/COMEX Clearing Members are eligible to become Green Exchange Clearing Members. The CME Clearing house is one of the world’s largest clearing houses monitoring and processing more than one billion trades each year and can draw on over US$9 billion from its Financial Safeguards Package.
Tom Lewis, Chief Executive of Green Exchange LLC said: "We are pleased that BNP Paribas Commodity Futures Inc. has joined our market as a clearing member, offering its clearing services for our environmental suite of products to its extensive client base. Current and future market participants will benefit from BNP Paribas’ clearing of futures and options listed on the Green Exchange and we believe they will play an important role in offering global client access to the Exchange."
Louis Caiafa, CEO of BNP Paribas Commodity Futures Inc, added: "We are delighted to be the first clearing member of Green Exchange. This membership further complements our existing business in offering clients the ability to access leading exchanges around the world. The carbon space continues to evolve with central counterparty clearing increasingly becoming more important. Clients can be confident that our organization has an integrated approach to clearing these products from execution to settlement and delivery.”
BNP Paribas Commodity Futures Inc is part of the Global Equities and Commodity Derivatives platform at BNP Paribas Corporate and Investment Banking. Commodity Derivatives is a global business line operating in two main areas: Futures and Over the Counter (OTC) Derivatives, providing clients with a full range of Price Risk Management Solutions across all commodities derivatives.
The Green Exchange recently received its approval for designation as a contract market (DCM) from the US Commodity Futures Trading Commission (CFTC). The environmental futures and options contracts that are currently listed for trading on the NYMEX trading platform and cleared through CME Clearing which are to be migrated to the Green Exchange platform include: EUA, CER, CAR, RGGI, NOx and SO2 futures and options emissions allowances.
The Green Exchange environmental suite of futures and options contracts is currently eligible for a fee holiday (trading and clearing fees) until August 31, 2010.
For more information on how to gain visibility to prices, to access ClearPort OTC Clearing, or to apply to become a Green Exchange Participant or Clearing Member, please contact the Green Exchange directly.
