ICE to transition European Union Emission Allowance Contracts to ICE Endex in the Netherlands during the Second Quarter of 2021
February 08 2021 - 7:00AM
Business Wire
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator
of global exchanges and clearing houses and provider of mortgage
technology, data and listings services, announced today that it
plans to transition ICE EUA Futures and Options and ICE EUA Daily
Futures (collectively, “ICE EUAs”) and ICE EUAA Futures (“ICE
EUAAs”) from ICE Futures Europe, ICE’s London-based exchange, to
ICE Endex, ICE’s exchange in the Netherlands, during the second
quarter of 2021, subject to the completion of regulatory processes.
A more specific date for the transition will be announced in due
course.
ICE EUA and EUAA markets will continue to be cleared at ICE
Clear Europe in London where they are cleared alongside ICE’s
global environmental complex including California Carbon Allowances
(CCAs) and California Carbon Offsets (CCOs), as well as some of the
largest energy contracts in the world across oil, natural gas,
power and coal, allowing those who trade to benefit from the margin
offsets created by clearing alongside ICE’s global energy
complex.
“The decision to transition the execution of EU emission
allowance contracts to the Netherlands follows close dialogue with
customers over the past few months and will help those who rely on
these markets to meet obligations and manage climate price risk in
the most cost-effective and seamless manner”, said Stuart Williams,
President of ICE Futures Europe. “Leveraging our experience in
managing transitions, we will carry out this process in the
smoothest possible manner for customers.”
The EU Emissions Trading Scheme is a cornerstone of the EU's
policy to combat climate change. Market-based mechanisms like
carbon cap and trade programs are pivotal in allowing policy makers
to control the quantity of carbon to align with their net-zero
commitments and put a price on emissions to reach those goals in
the most cost-effective manner.
EUA futures and options volume traded on ICE has increased more
than 100% from 2015 to 2020. More than 12 million lots of EUA
futures and options traded on ICE in 2020, equivalent to 12 billion
allowances or 12 gigatonnes.
ICE’s EUA contract is one part of ICE’s global environmental
complex which includes futures and options connected to ICE’s
California Cap and Trade, Regional Greenhouse Gas Initiative and
renewable energy credits markets. Volume in the North American
Environmental complex increased by approximately 30% in 2020 versus
2019.
In April 2020, ICE launched the ICE Global Carbon Futures Index
to track and benchmark the global price of carbon. While in
December 2020, ICE was appointed to host emissions auctions as part
of the launch of a UK Emissions Trading Scheme (UK ETS). ICE plans
to commence auctions and launch UK spot and futures carbon
allowance contracts on ICE Futures Europe no later than the second
quarter of 2021, subject to regulatory approval.
ICE has been a leader in environmental markets for nearly two
decades. A wide and increasing group of stakeholders use the price
signals from ICE’s global markets and indices to help assess
climate transition risk in their portfolios, and access liquidity
pools for compliance purposes, managing risk and allocating capital
to benefit from energy transition opportunities.
About Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE) is a Fortune 500
company and provider of marketplace infrastructure, data services
and technology solutions to a broad range of customers including
financial institutions, corporations and government entities. We
operate regulated marketplaces, including the New York
Stock Exchange, for the listing, trading and clearing of
a broad array of derivatives contracts and financial securities
across major asset classes. Our comprehensive data services
offering supports the trading, investment, risk management and
connectivity needs of customers around the world and across asset
classes. As a leading technology provider for the U.S. residential
mortgage industry, ICE Mortgage Technology provides the
technology and infrastructure to transform and digitize U.S.
residential mortgages, from application and loan origination
through to final settlement.
Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual
property rights of Intercontinental Exchange, Inc. and/or its
affiliates is located here. Key Information Documents for
certain products covered by the EU Packaged Retail and
Insurance-based Investment Products Regulation can be accessed on
the relevant exchange website under the heading “Key Information
Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 -- Statements in this press release regarding
ICE's business that are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion
of additional risks and uncertainties, which could cause actual
results to differ from those contained in the forward-looking
statements, see ICE's Securities and Exchange Commission (SEC)
filings, including, but not limited to, the risk factors in ICE's
Annual Report on Form 10-K for the year ended December 31, 2020, as
filed with the SEC on February 4, 2021.
Source: Intercontinental Exchange
ICE-CORP
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version on businesswire.com: https://www.businesswire.com/news/home/20210208005396/en/
ICE Media Contact Rebecca Mitchell +44 7951 057351
Rebecca.Mitchell@theice.com
ICE Investor Contact Warren Gardiner 770-835-0114
Warren.Gardiner@theice.com
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