In coordination with market participants, CME Group has amended the NYMEX EUA and CER contracts to integrate CME Clearing and Clearing Firms into the emissions credit transfer process.
To facilitate this change, CME Clearing has implemented arrangements with Dutch and UK Registries to arrange for the transfer of emission credit allowances to and from Clearing Members or their designees.
Highlights of contract changes:
- CME Clearing and Clearing Firms will be parties to all deliveries.
- Selling Clearing Firms will receive emission credit allowances from their customers and transfer them to CME’s newly established account at either the Dutch or UK Registries.
- CME will transfer emission credit allowances to the Buying Clearing Firms, who will then transfer them to their customers.
- Clearing Members may appoint a designee to transfer allowances at the Dutch or UK Registries (including an affiliate of the Clearing Member) if the Clearing Member Firm does not maintain requisite accounts at the registries.
Clearing Member Action Required:
Near term open positions are currently in the December 2009 EUA and CER contracts. Any Clearing Member with open positions who does not believe that it can implement appropriate arrangements in time to fulfill its upcoming obligations under the revised delivery mechanism should explore alternate arrangements, such as an ex-pit transaction or liquidation prior to the contract(s) expiration.
Please refer the following NYMEX Rulebook sections for new delivery deadlines and details:
Please review the amendments and contact the CME Deliveries Unit with any questions at 1.312.930.3172.