Contracts are for physical delivery through the transfer of ERUs between National Registry Accounts.
|Units of Trading||One lot of 1,000 Emission Reduction Units ("ERUs"), being units
issued pursuant to Article 6 of the Kyoto Protocol (as amended from
time to time) provided that:
a) As of the time of delivery to the Clearing House, such ERUs may be used for determining compliance with emissions limitation commitments pursuant to and in accordance with the Scheme, by the issuance of an EUA by the competent authority, valid in the third compliance period of the Scheme, in exchange for an ERU, and being ERUs which have not been notified by the Exchange from time to time as being unsuitable for delivery to the Exchange ("Ineligible ERUs"): or
b) Are marked as "eligible" within relevant Union Registry accounts, and as such may be transferred into the Clearing House account at the Union Registry.
Ineligible ERUs include those ERUs issued in respect of:
• Emission reductions achieved on or before 31 December 2012, which are:
a) From project activities hosted in a Member State and which relate to one of the category of activities (specified in Annex I of the Directive) to which the Directive will only apply during Phase 3 of the Scheme, issued after 30 April 2013; or
b) Issued after 1 January 2013and from projects hosted in a country that is not a Member State and which has either (i) adopted a quantified emission target from 2013 to 2020 but which is not yet legally binding on that country, or (ii) not deposited an instrument of ratification relating to an amendment to the Kyoto Protocol and, in the case of either (i) or (ii), is a project under the procedure for verifying projects established in paragraph 23 of the annex to Decision 9/CMP.1 of the Kyoto Protocol (i.e. Track 1);
• up to and including the April 2013 Contract, hydroelectric power production project activities with a generating capacity exceeding 20MW ("Large Hydro Projects");
• following and including the May 2013 Contract, Large Hydro Projects that are not listed on the Exchange's Phase 3 Large Hydro List (as of the relevant time of delivery);
• any projects hosted by any State which is subject to a regime of sanctions and/or trade controls by the European Union, the United Nations, or the United States Office of Foreign Assets Control, or any projects connected with, whether directly or indirectly, any individuals or entities, whether public or private, listed or identified by the European Union, the United Nations or the United States Office of Foreign Assets Control for the purposes of and pursuant to a regime of sanctions and trade controls.
For the avoidance of doubt, the listing of a Large Hydro Project on the Exchanges' Phase 3 Large Hydro List pursuant to the Exchange's published methodology (members are referred to Circular 13/075 dated 17 May 2013) will not constitute any representation or warranty by either the Exchange or the Clearing House as to whether or not any ERUs issued in respect of that Large Hydro Project are capable of being used for determining compliance with emissions limitation commitments pursuant to and in accordance with the Scheme.
|Minimum Trading Size||1 lot.|
|Tick Value||10 Euros.|
|Quotation||Euro (€) and Euro cent (c) per metric tonne.|
|Tick Size||€0.01 per tonne (i.e. €10.00 per lot).|
|Minimum Price Flux||€0.01|
|Maximum Price Flux||There are no limits.|
|Contract Months||Contracts are listed on a quarterly expiry cycle such that March, June, September and December contract months are listed up to December 2015 and annual Contracts with December expiries up to 2020. In addition, the nearest two monthly Contracts will also be listed so that there are always three prompt Contracts available to trade inclusive of the quarterly Contract.|
|Expiration Date||Last Monday of the contract month. However, if the last Monday is a Non-Business Day or there is a Non-Business Day in the 4 days following the last Monday, the last day of trading will be the penultimate Monday of the delivery month.|
|Trading System||Trading will occur on the ICE Futures Europe electronic trading platform known as the ICE Platform accessible via Web ICE or through a conformed Independent Software Vendor.|
|Trading Hours||07:00 hours to 17:00 hours UK Local Time.|
|Settlement Price||Trade weighted average during the daily closing period (16:50 – 16:59:59 UK Local Time) with Quoted Settlement Prices if low liquidity. The settlement price will become the Exchange Delivery Settlement Price (EDSP).|
|VAT & Taxes||UK's HM Revenue and Customs has confirmed that the trading of the ICE ERU Futures Contract on the Exchange between the Member and ICE Clear Europe Limited has been granted interim approval to be zero-rated for VAT purposes under the terms of the Terminal Markets Order.|
|Delivery/Settlement Terms||The Contracts are physically deliverable by the transfer of ERUs
from the Trading Account of the Selling Clearing Member at a
Registry to the Trading Account of ICE Clear Europe at a Registry
and from the Trading Account of ICE Clear Europe at that Registry
to the Trading Account of the Buying Clearing Member at a
Delivery is between Clearing Members and ICE Clear Europe during a Delivery Period. The Delivery Period for Selling Clearing Members is the period beginning at 17:00 hours on the last trading day and ending at 15:00 hours on the second Business Day following the last trading day. ICE Clear Europe will deliver to Buying Clearing Members by 15:00 on the third Business Day following the last trading day.
|Clearing||ICE Clear Europe will act as central counterparty to all trades.|
|Contract Security||ICE Clear Europe guarantees the financial performance of the ICE Futures Europe contracts registered in the name of its Members.|
|Other Terms||Block Trades are available for this contract, with a minimum size of 50 lots. EFPs/EFSs are also available.|
NOTE: DST in the US will be different than BST time. See Circular 12138 for temporary trading hours changes.
Clearing Admin NameERU