- What is the CBL Australian Carbon Credit Unit (ACCU) futures contract?
- What are the key capabilities of Australian Carbon Credit Units (ACCU)?
- Who is CBL?
- Why is CME Group launching the CBL ACCU contract?
- When does CME Group plan to launch the CBL ACCU contract?
- What are the contract specifications for the CBL ACCU futures?
- What is the listing schedule?
- What are the codes?
- What are the fees?
- How is the final settlement price calculated?
- How can I trade CBL ACCU futures contracts?
- Is the CBL ACCU contract eligible for block trading?
- What are the hours for block trade entry into CME ClearPort for clearing?
- How does the delivery process work?
- Will I be required to onboard with CBL and the Australian National Registry of Emissions Units (ANREU) to trade CBL ACCU futures?
- Are ACCU futures available for trading during U.S. holidays?
- What are the margin requirements for CBL ACCU futures?
- What are the available margin credits for offsetting positions?
1. What is the CBL Australian Carbon Credit Unit (ACCU) futures contract?
The Australian Carbon Credit Unit (ACCU) futures contract is a physically settled contract that allows for delivery on the Australian National Registry of Emissions Units (ANREU) of generic ACCU. Deliveries will be facilitated through CBL, a global leader in spot energy and environmental markets.
Please see the Australian Carbon Credit Unit (ACCU) futures contract specifications for more information.
2. What are the key capabilities of Australian Carbon Credit Units (ACCU)?
Australian Carbon Credit Units (ACCU) are certificates issued by the Australian Clean Energy Regulator to projects contributing to carbon abatements.
One ACCU represents one tonne of carbon dioxide equivalent (tCO2e) that would have otherwise been released into the atmosphere.
ACCU can be used in the Voluntary Carbon Market (VCM) and within the Safeguard Mechanism, Australia’s emissions trading scheme.
3. Who is CBL?
CBL is a global exchange platform for transacting spot energy and environmental commodity products such as carbon, renewable energy, water and natural gas. For more information, please visit xpansiv.com.
4. Why is CME Group launching the CBL ACCU contract?
CME Group’s global customers are in search of a way to manage future price risk associated with carbon markets in Australia. The ACCU contract enables increased price transparency for carbon credit offsets in future months and provides access to the Australian market.
5. When does CME Group plan to launch the CBL ACCU contract?
CME Group plans to launch CBL ACCU futures for trade date October 13, 2024, pending regulatory review.
6. What are the contract specifications for the CBL ACCU futures?
|
Product Name |
CBL Australian Carbon Credit Unit (ACCU) futures |
|
Trading Hours |
Sunday - Friday 5:00 p.m. - 4:00 p.m. CT with a 60-minute break each day 4:00 p.m. CT |
|
Code |
ACU |
|
Settlement Type |
Physical |
|
Product/Contract Size |
1,000 |
|
Product Unit of Measure |
Australian Carbon Credit (ACCU) |
|
Currency |
AUD |
|
Price Quotation |
Australian dollars and cents by ACCU |
|
Final Settlement Price |
The final settlement price for the delivery month shall be the CBL Carbon Credit Unit (ACCU) Price on the last trade date. The final settlement price shall be the basis for delivery. |
|
Series Listing Convention |
Monthly contracts listed for the current year plus three consecutive calendar years. Monthly contracts for a new calendar will be added following the termination of the December contract each year. |
|
Last Trade Date Rules |
The last Australian business day that is also an Exchange business day prior to the 10th calendar day of the contract month. |
|
Delivery Date |
Four business days following the final trading day. |
|
Delivery Process |
CBL Market is a transfer agent contracted by its account holders to facilitate the transfer of emissions offsets and payment. |
|
Deliverable Product |
The CBL Australian Carbon Credit Unit (ACCU) futures contract physically delivers Australian Carbon Credit Units (ACCUs) that comply with the procedures set forth in the CBL Standard Instruments Program under Schedule 7. |
|
Block Eligibility/Qty |
5 lots |
|
Vendor Codes |
TBC |
7. What is the listing schedule?
Monthly contracts listed for the current year plus three consecutive calendar years. Monthly contracts for a new calendar will be added following the termination of the December contract each year.
8. What are the vendor codes?
- CME Globex and CME ClearPort Code: ACU
- Bloomberg Code: OUCA Comdty
9. What are the fees?
Fees can be found on the CME Group fee schedule.
10. How is the final settlement price calculated?
The final settlement price for the delivery month shall be the CBL/Platts Australian Carbon Credit Unit (ACCU) price on the last trade date. The final settlement price shall be the basis for delivery.
11. How can I trade CBL ACCU futures contracts?
ACCU futures can be electronically traded through CME Globex or cleared as block transactions via CME Direct or CME ClearPort
To find out more about access to CME Group’s front end trading system, CME Direct, visit: https://www.cmegroup.com/solutions/market-access/cme-direct.html.
12. Is the CBL ACCU contract eligible for block trading?
Yes, subject to certain requirements being met,* the futures contract can be privately negotiated via the brokers as a block trade and submitted into CME ClearPort for clearing.
*For example: Minimum trade size
The minimum block trade size is five contracts and trades need to be reported by the broker onto CME ClearPort within 15 minutes of execution.
The definition of Eligible Contract Participant (ECP) can be found in Section 1a(18) of the Commodity Exchange Act.
To find out more about block trades, visit:
13. What are the hours for block trade entry into CME ClearPort for clearing?
Trades may be entered into CME ClearPort from 4:00 p.m. Eastern Time (ET) Sunday to 3:00 p.m. Friday ET, with a 60-minute pause each day from 3:00 p.m. to 4:00 p.m. ET.
14. How does the delivery process work?
CBL ACCU futures are physically delivered. The deliveries are done on the Australian National Registry of Emissions Units (ANREU) website.
Deliveries are facilitated through CBL Market, which operates as a transfer agent and occurs on the third business day following the expiration of the futures contract.
15. Will I be required to onboard with CBL and the Australian National Registry of Emissions Units (ANREU) to trade CBL ACCU futures?
Firms are not required to onboard with CBL and open an account on ANREU in order to trade ACCU futures.
Onboarding with registration is only required if a firm plans to make or take delivery via the futures mechanism. Just like any other physically settled futures contracts, firms may choose to avoid delivery by exiting their position, rolling their position or conducting an Exchange for Physical (EFP) transaction.
16. Are ACCU futures available for trading during U.S. holidays?
CBL ACCU futures will follow the CME Group holiday calendar.
Trading of CBL ACCU futures will remain unaffected during Australian holidays, except for days that are designated CME Group holidays.
During CME Group holidays:
- Electronic trading and block trade submission may not be possible or follow a special schedule.
- Trades may be reported with the next day’s trade date.
Details are available in the CME Group trading schedule.
17. What are the margin requirements for CBL ACCU futures?
TBC
18. What are the available margin credits for offsetting positions?
TBC
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
