IntercontinentalExchange (NYSE: ICE), a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, announced the first trade in its new futures contract on European Union Aviation Allowances (EUAAs), which was introduced for trading today.
The trade was for one lot; representing 1,000 EUAAs for December 2012 delivery. One EUAA denotes an entitlement for airline companies, which are included within the EU Emissions Trading Scheme from 2012, to emit one tonne of carbon dioxide equivalent gas. In addition to being the first EUAA Futures trade on ICE Futures Europe, the transaction today is the first trade of its kind to trade on-exchange.
The two counterparties to the trade, who have confirmed their participation at the request of ICE Futures Europe, were Belektron and Vertis Environmental Finance. The trade was cleared by Bache Commodities.
"The inclusion of airlines is an important element of Phase III of the EU Emissions Trading Scheme and the ICE EUAA Futures contract enables airlines to manage their emissions goals for the next phase. We are delighted to contribute to the liquidity of this contract from the start of trading today," said Bostjan Bandelj, Director at Belektron.
ICE Futures Europe offers derivative contracts on four types of carbon units: ICE EU Allowances (EUAs),ICE Certified Emission Reductions (CERs), the world's first ICE Emissions Reductions Units (ERUs) and ICE EU Aviation Allowances.
Annual volumes for ICE EUA Futures and Options products were a record 6.15 million contracts in 2011 (6,150 million tonnes of CO2), an increase of 23% on the previous year. Average daily volumes for all ICE Emissions contracts were 32,353 in January 2012, an increase of 46.7% on January 2011. Open interest stood at 1,176,789 contracts as at February 24, 2012 for ICE Emissions Futures and Options products.