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XShares Advisors LLC, a financial services company focused on the development and distribution of innovative Exchange Traded Funds (ETFs), today announced that it has entered into an agreement with the Chicago Climate Exchange, Inc. (CCX), the second largest live carbon emissions trading market in the world, to develop products based on carbon emission credits.
Carbon emission credits allow firms and other organizations the right to emit a stated amount of carbon dioxide over a specified time period. Organizations that emit more carbon emissions than they are permitted will generally have to buy more carbon emission credits from firms who produce less carbon dioxide and therefore have extra emission credits. Many of these transactions take place on the Chicago Climate Exchange (CCX). CCX members are leaders in greenhouse gas management and represent all sectors of the global economy, as well as public sector innovators. CCX is a wholly owned subsidiary of Climate Exchange Plc (LSE: CLE), a public company listed on the AIM Market of the London Stock Exchange. Climate Exchange Plc also owns the European Climate Exchange, Europe's leading CO2 emissions exchange.
"We are very excited to be partnering with such a progressive institution as the Chicago Climate Exchange to develop new products based on carbon emission credits," said Jeffrey L. Feldman, Co-Founder, XShares Advisors LLC. "At XShares we are continually looking for strategic partners like CCX to help us achieve our goal of creating innovative products that give investors more flexibility and opportunity."
Dr. Richard Sandor, Chairman and CEO of Chicago Climate Exchange stated: "Chicago Climate Exchange is a financial institution that is providing a cost-effective means for emitters from all sectors of the economy to reduce greenhouse gas emission and the risks from global warming. One of the objectives of CCX is to build a robust market with the necessary financial incentives so that the private sector can play its critically important role in advancing environmental and social objectives. We are pleased to partner with XShares to provide additional pathways for the financial markets and investors to help smooth the transition to a cleaner and more energy efficient economy in a carbon-constrained world."
XShares' product offerings began trading on the New York Stock Exchange January 23, 2007. The company has a substantial list of additional funds in varying stages of development, some of which are being developed using proprietary indexes as well as others developed in concert with strategic partners.
