Chicago Climate Futures Exchange® (CCFE™), a Commodity Futures Trading Commission (CFTC) regulated Designated Contract Market, will begin trading Friday, August 15, 2008 a Regional Greenhouse Gas Initiative futures and options on futures contract (RGGI futures and options), each of which represent 1,000 RGGI allowances.
RGGI is a CO2 cap-and-trade emissions trading program comprised of ten New England and mid-Atlantic states that will commence in 2009. RGGI will be the first government mandated CO2 emissions trading program in the United States. The offering of the contracts comes to meet the demand of several of the largest power producers in the region that are already members of CCFE and CCX for a low cost, transparent, and standardized platform to hedge against price fluctuations in the RGGI CO2 emissions market.
“With the launch of futures and options contracts on RGGI CO2 allowances, CCFE provides the gateway for participants to hedge positions in the U.S.’s first mandatory carbon market,” said Dr. Richard L. Sandor, Chairman and CEO. “We salute the hard work of the governments and stakeholders of the Northeast states to develop RGGI. This market will require price transparency and efficient, exchange-based systems for maximum success. As RGGI evolves, CCFE will uniquely be able to provide a wealth of experience and linkage with other global greenhouse gas emissions trading systems.”
