Chicago Climate Futures Exchange Announces The Successful Launch Of Renewable Energy Certificate (REC) Futures

Chicago Climate Futures Exchange® (CCFE®), a wholly owned subsidiary of Chicago Climate Exchange, Inc., announces the successful launch of the first futures contracts based on Renewable Energy Certificates (RECs). CCFE currently offers the following REC futures contracts:

• New Jersey Compliance REC Futures (REC-NJ Class 1)
• Connecticut Compliance REC Futures (REC-CT Class 1)
• Massachusetts Compliance REC Futures (REC-MA Class 1)
• Voluntary REC Futures (REC-V)

On the first day of trading, 150 REC futures contracts (representing 15,000 megawatt hours “MWh”) of renewable energy traded on CCFE.

• Element Markets LLC and CE2 Capital Partners were parties to the first-ever block trade in the CCFE REC-NJ Futures contract. This trade was brokered by Amerex Brokers, LLC and cleared on CCFE.
• Element Markets LLC and GDF SUEZ Energy Marketing NA were parties to the first-ever screen based trade in the CCFE REC-NJ Futures contract.

"The ability to financially trade and clear OTC transactions should enhance risk mitigation and is an important step towards attracting significant investment capital to these REC markets. Standardization and exchange supported credit tools have been missing to date and these contracts should improve market liquidity,” said Harold Buchanan, Managing Partner of CE2 Capital Partners

“Renewable energy is an increasingly important part of GDF SUEZ’s business in North America,” said Sam Henry, president and CEO of GDF SUEZ Energy Marketing NA. “GDF SUEZ is producing more electricity in North America from renewable sources such as wind, hydro, and biomass than ever before, and we are equally proud to be on the leading edge of developing ways to support the growth of Renewable Energy Certificates in the U.S.”

“The launch of Renewable Energy Certificate (“REC”) futures contracts on the CCFE is an important step for the emerging clean energy markets. It also marks another milestone in the development of a truly comprehensive environmental marketplace in the United States that takes into consideration the various environmental impacts of energy production.” said Dr. Richard Sandor, Chairman and CEO of CCX. “We continue to be responsive to the increasing demand for environmental products as the U.S. weighs the merits of using market-based mechanisms to address environmental concerns and foster job creation. We believe the benefits of price discovery, transparency and standardization that a federally-regulated Exchange such as CCFE brings can only help to spur innovation and liquidity in these markets.”