NYMEX to Launch Regional Greenhouse Gas Initiative (RGGI) CO2 Allowance Futures, Options Contracts as Part of its Green Exchange
July 28 2008 - 8:00AM
PR Newswire (US)
NEW YORK, July 28 /PRNewswire-FirstCall/ -- The New York Mercantile
Exchange, Inc., a subsidiary of NYMEX Holdings, Inc. (NYSE:NMX),
today announced that it will launch a Regional Greenhouse Gas
Initiative (RGGI) carbon dioxide allowance futures contract on
August 24, for the August 25 trade date. It will also list a RGGI
options contract for trade date August 26. The listing of these
products on NYMEX is a Green Exchange initiative, which will
provide a trading platform for environmental commodities. The new
futures contract, with commodity code RJ, will be physically
delivered to the RGGI CO2 Allowance Trading System (RGGI-COATS). It
will be available for trading on the CME Globex(R) electronic
trading platform. Additionally, off-exchange transactions can be
submitted for clearing via NYMEX ClearPort(R). The size of the
futures contract will be 1,000 RGGI CO2 allowances with a minimum
price fluctuation of $0.01 per allowance. It will expire at the
termination of the third business day prior to the first business
day of the contract month. The RGGI options contract, with contract
code OR, will be an American-style option that exercises into the
underlying RGGI futures contract. The options will expire three
business days prior to the expiration of the underlying RGGI
futures contract. There will be five strike prices in increments of
$0.50 per allowance above and below the at-the-money strike price.
The minimum price fluctuation will be $0.01 per allowance. The
contract will trade on the NYMEX trading floor. Additionally,
off-exchange options transactions can be submitted for clearing via
NYMEX ClearPort. December 2009 will be the first listed month for
both the futures and options contracts, with additional contract
months to be added. RGGI is a cooperative effort of ten
northeastern states to reduce CO2 emissions. Participating states
have pledged to reduce by 2010 greenhouse gas emissions to 10%
below 1990 levels. RGGI states have put in place a regional
cap-and-trade system to regulate CO2 emissions from power plants,
and the trading of carbon allowances under this program has begun
in the over-the-counter market. RGGI plans to begin quarterly
auctions of allowances on September 25, 2008, and the launch of the
NYMEX RGGI futures and options contracts are expected to provide
the market with a valuable tool for hedging price risk. About the
New York Mercantile Exchange, Inc. The New York Mercantile
Exchange, a subsidiary of NYMEX Holdings, Inc. (NYSE:NMX), is the
world's largest physical commodities exchange, offering futures and
options trading in energy and metals contracts and clearing
services for more than 350 off-exchange energy contracts. Through a
hybrid model of open outcry floor trading and electronic trading on
CME Globex(R) and NYMEX ClearPort(R), NYMEX offers crude oil,
petroleum products, natural gas, coal, electricity, gold, silver,
copper, aluminum, platinum group metals, emissions, and soft
commodities contracts for trading and clearing virtually 24 hours
each day. For more information, visit the NYMEX website at
http://www.nymex.com/. Forward Looking and Cautionary Statements
This press release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act, with
respect to our future performance, operating results, strategy, and
other future events. Such statements generally include words such
as could, can, anticipate, believe, expect, seek, pursue, and
similar words and terms, in connection with any discussion of
future results. Forward-looking statements involve a number of
assumptions, risks, and uncertainties, any of which may cause
actual results to differ materially from the anticipated,
estimated, or projected results referenced in forward-looking
statements. In particular, the forward-looking statements of NYMEX
Holdings, Inc. and its subsidiaries are subject to the following
risks and uncertainties: the success and timing of new futures
contracts and products; changes in political, economic, or industry
conditions; the unfavorable resolution of material legal
proceedings; the impact and timing of technological changes and the
adequacy of intellectual property protection; the impact of
legislative and regulatory actions, including without limitation,
actions by the Commodity Futures Trading Commission; and terrorist
activities and international hostilities, which may affect the
general economy as well as oil and other commodity markets. We
assume no obligation to update or supplement our forward-looking
statements. DATASOURCE: NYMEX Holdings, Inc. CONTACT: Anu Ahluwalia
of NYMEX Holdings, Inc., +1-212-299-2439; or Evan Ard of Evolution
Markets, +1-914-323-0210, for NYMEX Holdings, Inc. Web site:
http://www.nymex.com/
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