Carbon Financial Instrument, United States, Future6747559

Description

Physically delivered contract on a mandatory U.S. greenhouse gas limitation and trading program.

Market Specifications

Trading Screen Product Name
CFI-US Futures
Trading Screen Hub Name
CFI-US
Commodity Code
CFS
Settlement Method
Physical delivery
Contract Size
1,000 metric tons
Currency
USD
Minimum Price Fluctuation
The price quotation convention shall be One cent ($0.01) per metric ton; minimum price fluctuation may vary by trade type. Please see Table in Resolution 1 to this Chapter 18.
Listing Cycle
1. Standard-cycle contract listings: Annual December expirations through 2015

2. The Exchange may list any other calendar month contract sets off the standard-cycle listing schedule through the last expiring contract set.
Last Trading Day
Three Business Days prior to the last Business Day of the delivery month
Deliverable Instruments and Registry (1)
Deliverable Instruments: In order to make or take delivery of Carbon Financial Instrument (“CFI”) futures contracts, Clearing Members must have appropriate registry accounts established prior to the expiration of any CFI futures contract.

1. If a mandatory greenhouse gas ("GHG") limitation and trading program has been enacted into applicable law in the U.S., deliverable instruments are allowances usable for compliance obligations pursuant to the U.S. government mandated GHG limitation and trading program as follows:

a. Allowances from the registry or appointed program administrator of the U.S. government-appointed program administrator (for example, the U.S. EPA) equal to 1,000 metric tons CO2 equivalent. For CFI contracts that expire in years prior to the first compliance year of the U.S. mandatory GHG limitation and trading program, the deliverable vintage allowances are those usable for compliance in the first compliance year under the U.S. mandatory program.

For CFI contracts that expire during the first compliance year or during years subsequent to the first compliance year of the U.S. mandatory GHG limitation and trading program, vintages allowed for delivery are all vintage instruments usable for compliance in the year of contract expiration.

Or

b. Allowances from any other U.S. government-approved registry, which may include but may not be limited to Carbon Financial Instrument contracts from the Chicago Climate Exchange registry, or from any other U.S. government-approved registry, may be delivered against CFI contracts provided they are tendered in amounts that are recognized for compliance use under the U.S. government program as equivalent to 1,000 metric ton CO2 of compliance obligations under the U.S. government GHG limitation and trading program. Such tendered allowances must have the exact compliance status as U.S. government allowances. Additionally, tradable GHG instruments issued under a mandatory program that may be designated as an "allowance", but are issued on the basis of greenhouse gas mitigation realized by a facility or activity that is not itself covered or otherwise subject to emission limits under the U.S. government GHG limitation and trading program, shall be ineligible for delivery.
Deliverable Instruments and Registry (2)
2. If a registry of a U.S. government-appointed program administrator or any other U.S.-approved registry is not yet operational and capable of delivering U.S. compliant allowances at a CFI contract expiration, all open contract positions in the expiring futures contract of a relevant set will roll forward one (1) calendar year based on a value determined by multiplying the final Settlement Price of the expired contract multiplied by the sum of one (1) plus the interest rate on 12-month U.S. Treasury notes that is prevailing at the time of contract expiration.
Deliverable Instruments and Registry (3)
3. For contracts of a particular set with an expiration prior to enactment of an applicable law that establishes a mandatory U.S. government GHG limitation and trading program, the allowances acceptable for delivery are, at the option of the seller, European Union Emission Allowances ("EUAs"), Regional Greenhouse Gas Emission Allowances ("RGGI allowances"), or allowances issued under any mandatory U.S. state or regional greenhouse gas limitation and trading system that has emission limits that apply to emissions occurring during the year of contract expiration. Additionally, tradable GHG instruments issued under a mandatory program that may be designated as an "allowance", but are issued on the basis of greenhouse gas mitigation realized by a facility or activity that is not itself covered or otherwise subject to emission limits under the U.S. government GHG limitation and trading program, shall be ineligible for delivery. All deliveries must occur in amounts equal to the contract size. EUAs, RGGI allowances or other eligible allowances that are acceptable for delivery are those having a vintage corresponding to the calendar year of the expired contract or a vintage year that is earlier than the calendar year of the expired contract. The EUA 2008 vintage is the earliest EUA vintage eligible for delivery.

The seller must forward the confirmation of the underlying CFI instrument transfer to the Clearing Organization in a means and manner prescribed by the Clearing Organization.
Registry
Various, see “Deliverable Instrument” for applicable registry
MIC Code
IFED
Clearing Venues
ICEU
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Trading Hours

CityTradingPre-Open
New York7:50 PM - 6:00 PM*
19:50 - 18:00
7:40 PM
19:40
London12:50 AM - 11:00 PM*
00:50 - 23:00
12:40 AM
00:40
Singapore8:50 AM - 7:00 AM*
08:50 - 07:00
8:40 AM
08:40

*Next Day

Codes

Clearing Admin Name
CFI-US
Physical
CFS
Logical
CFS
GMI(FC)
R&N A.C.N.