News Release

CME Group Announces European Union Allowance and Certified Emission Reduction Futures on CME Globex®

Wed Jun 24 2009

CHICAGO, June 24 /PRNewswire-FirstCall/ -- CME Group, the world's largest and most diverse derivatives exchange, today announced that its new In Delivery Month European Union Allowance (EUA) and Certified Emission Reduction (CER) futures contracts will be available for trading on CME Globex beginning on July 11 for trade date July 13. These contracts are listed for trading by NYMEX and are subject to NYMEX rules and regulations.

 

Last week CME Group announced that these contracts would be available on the New York trading floor and through CME ClearPort®, a set of flexible clearing services open to over the counter (OTC) market participants to substantially mitigate counterparty risk and provide capital efficiencies across asset classes.

 

The new contracts and their commodity codes will be in delivery month EUA futures (EAF) and in delivery month CER futures (CRE). The first listed month will be September 2009.

 

In the European Union, large emitters of carbon dioxide are required to monitor their CO2 emissions and report them to their government. They receive a predetermined number of allowances that corresponds to their level of emissions. If they have more allowances than they need for compliance, they can sell those in a secondary market like the one this EUA product offers or bank them for future compliance purposes. CERs are emission reduction credits issued by the Clean Development Mechanism Executive Board that was established with the Kyoto Protocol. Taking positions in these CER contracts can lead to the delivery of the underlying credits, which can be used by emitting companies to comply in part with their emission caps.

 

It is intended that these products will be listed for trading as part of the Green Exchange venture once that venture has sought and achieved appropriate regulatory status. The Green Exchange venture will be working with U.S. and European regulators and intends to seek recognition in the U.S. as a designated contract market and approval from the FSA in the U.K. CME Group is one of the founding members of Green Exchange Holdings LLC.

 

For more information, please visit www.cmegroup.com.

 

CME Group (www.cmegroup.com) is the world's largest and most diverse derivatives exchange. Building on the heritage of CME, CBOT and NYMEX, CME Group serves the risk management needs of customers around the globe. As an international marketplace, CME Group brings buyers and sellers together on the CME Globex electronic trading platform and on trading floors in Chicago and New York. By acting as the buyer to every seller and the seller to every buyer, CME Clearing virtually eliminates counterparty credit risk. CME Clearing also offers financial safeguards to help mitigate systemic risk, providing the security and confidence market participants need to operate, invest and grow. CME Group offers the widest range of benchmark products available across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, and alternative investment products such as weather and real estate. CME Group is listed on NASDAQ under the symbol "CME."

 

The Globe logo, CME, Chicago Mercantile Exchange, CME Group, Globex, E-mini and CME ClearPort are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago. NYMEX and New York Mercantile Exchange are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other trademarks are the property of their respective owners. Further information about CME Group and its products can be found at www.cmegroup.com.

CME-G

SOURCE: CME Group

Web site: http://www.cme.com/

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