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Green Exchange (“GreenX”) today announced its intention to list a futures contract for Certified Emission Reduction Units (CER) for post-2012 delivery. This contract, which will be formally known as the CERplusSM Futures contract, will be available for trading Sunday, February 27, 2011 for trade date Monday, February 28, 2011. The CERplus Futures contract introduces a new underlying unit of trade, called Relevant CERs, defined as CER units that will be deemed eligible for compliance purposes within the EU Emissions Trading Scheme as published in the Official Journal of the European Union at the time of delivery.
The CERplus is a new product, with its own set of rules, and will be an additional contract offering to the existing IDM CER Futures contracts. Existing IDM CER contracts with Open Interest for 2011 and 2012 will not be affected by the introduction of the CERplus. The IDM CERplus Futures contract will initially be listed for delivery in December 2013. It is GreenX’s intent to offer additional vintages, options and spread contracts associated with the CERplus at a later point.
Commenting on the new product launch, Henrik Hasselknippe, Managing Director for Global Product Development with GreenX, said: “The CERplus Futures contract will provide the market with an instrument to address the uncertainty on eligibility for the existing CER contracts beyond 2012. Market participants can trade these contracts with the security that the specifications of the CERplus product are robust yet flexible enough to correspond to any change in EU legislation. We are confident that the flexible delivery mechanisms of this product, including the provision for multipliers, will stand the test of time.”
This physically deliverable futures contract will be listed on the GreenX Designated Contract Market (DCM) alongside the existing suite of environmental products, and will be cleared by CME Clearing. The contract will trade on CME Globex® and will be available for OTC clearing through CME ClearPort®.
