IntercontinentalExchange (NYSE: ICE), a leading operator of global markets and clearing houses, today announced that ICE Futures Europe will reopen the daily futures market for Phase II EU Allowances (EUA) and Certified Emission Reductions (CER) on December 10, 2012. On the same date, ICE Futures Europe will introduce a new daily futures contract for Phase III EU Allowances.
The Phase II and III EUA daily futures and the CER daily futures contracts are physically deliverable and will represent a lot size of 1,000 emission allowances and 1,000 certified emission reduction units respectively. Each EUA and CER represents an entitlement to emit one tonne of carbon dioxide equivalent gas. The daily futures contracts will expire on a daily basis.
"Following the implementation of additional security measures by the European Commission, including the single registry and trusted accounts, we are pleased to announce the reopening of the emissions daily futures market. Furthermore, the introduction of a new Phase III spot market on ICE Futures Europe will enhance the trading and hedging opportunities available to firms taking part in the emissions auctions on the ICE platform," said David Peniket, President & COO, ICE Futures Europe.
Emissions futures volumes have experienced strong growth since the first contract was launched in 2005, with annual ICE emissions futures and options volumes achieving a record 7.57 million contracts in 2011 (7,570 million tonnes of CO2). Year to date volumes in 2012 for ICE emissions futures and options products are 8.15 million contracts, an increase of 22% on the same period last year. As of November 26, 2012, open interest was 2.02 million contracts.
ICE Futures Europe offers futures and options contracts on four types of carbon units: EU Allowances (EUAs),Certified Emission Reductions (CERs), Emissions Reductions Units (ERUs) and European Union Aviation Allowances (EUAAs).