CHICAGO, March 3, 2021 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced that its Global Emissions Offset (GEO) futures have
launched and are available for trading. The total volume for the
first two trading days was 81 contracts across five different
contract months, with participation on screen and through the block
market from nine firms, including Macquarie Group, Hartree Partners
and Mercuria. The first trades took place on Sunday, February 28 and were executed by
Evolution Markets Inc.
"We are excited to see early customer interest and support for
the new GEO futures, which represent another way CME Group is
meeting the evolving risk management needs of our global energy
markets," said Peter Keavey, Global
Head of Energy at CME Group. "Demand for decarbonization continues
to accelerate, and GEO futures will help to establish a global
pricing benchmark for the voluntary emissions offset market,
providing customers with greater optionality in managing their
short and long-term emissions price risk."
"This is an important milestone in the evolution of the
voluntary carbon market and the energy transition. It presents a
new way for market participants to access exchange-traded futures
contracts for voluntary carbon and to better manage risk," said
Ozzie Pagan, Senior Managing
Director at Macquarie Group, which along with Xpansiv market CBL,
worked with CME Group in developing the GEO futures. "The GEO
futures offer a new set of tools for carbon offsetting
strategies. Macquarie is pleased to be a contributor in
driving innovation and broader market participation in carbon
markets."
"CME Group's new GEO contract launched at a time when our
partners are increasingly looking for tools to mitigate their
global emissions risk. As a leading participant in global energy
markets, we welcome the introduction of a standardized pricing
benchmark for the voluntary offset space. This should provide a
liquid and transparent market-based benchmark for environmental
risk management strategies," said Ariel
Perez, of Hartree Partners.
"CME Group's launch of the GEO futures product is a further
demonstration of the evolution of voluntary carbon markets," said
Adam Raphaely, Head of Emissions
Markets at Mercuria Energy America. "Mercuria is excited to
participate in the deployment of market-based mechanisms to
accelerate decarbonization across diverse industries and
geographies."
GEO futures were designed to help customers manage the risks
associated with voluntary decarbonization strategies. GEO futures
are based on the rigorous selection criteria and review process
developed for the Carbon Offsetting and Reduction Scheme for
International Aviation (CORSIA), which firms across various
industries and geographies rely on to assess the validity of offset
credits.
GEO futures allow for delivery of CORSIA eligible voluntary
offset credits from three ICAO approved registries and are listed
by and subject to the rules of NYMEX. For more information,
please visit www.cmegroup.com/geo.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) enables clients to trade futures,
options, cash and OTC markets, optimize portfolios, and analyze
data – empowering market participants worldwide to efficiently
manage risk and capture opportunities. CME Group exchanges offer
the widest range of global benchmark products across all major
asset classes based on interest rates, equity
indexes, foreign exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex® platform, fixed
income trading via BrokerTec and foreign exchange trading on the
EBS platform. In addition, it operates one of the world's leading
central counterparty clearing providers, CME Clearing. With a range
of pre- and post-trade products and services underpinning the
entire lifecycle of a trade, CME Group also offers optimization and
reconciliation services through TriOptima, and trade processing
services through Traiana.
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SOURCE CME Group