CME Group Announces the Launch of New Sulfur Dioxide Futures and Options Contracts

* Reuters is not responsible for the content in this press release.

Mon Jun 29, 2009 5:48pm EDT

CME Group Announces the Launch of New Sulfur Dioxide Futures and Options
Contracts

CHICAGO, June 29 /PRNewswire-FirstCall/ -- CME Group, the world's largest and
most diverse derivatives exchange, today announced the launch of its new
sulfur dioxide (SO2) emission 25-allowance futures and options contracts. The
futures contract will be available for clearing through CME ClearPort(R), a
set of flexible clearing services open to over the counter (OTC) market
participants to substantially mitigate counterparty risk and provide capital
efficiencies across asset classes, beginning July 12 for trade date July 13.
The futures contract will also be available for trading through CME ClearPort.
The options contract will be available for trading on the New York trading
floor beginning on July 13 for trade date July 14. These contracts are listed
by NYMEX and are subject to NYMEX rules and regulations.  

The commodity codes for the vintages of the futures contracts will be: current
vintage or earlier (SNV); vintage 2010 (V10); vintage 2011 (V11); vintage 2012
(V12); vintage 2013 (V13); vintage 2014 (V14); vintage 2015 (V15); vintage
2016 (V16); vintage 2017 (V17); vintage 2018 (V18); vintage 2019 (V19); and
vintage 2020 (V20). The new options contract commodity code will be S2.

The Environmental Protection Agency's (EPA) Clean Air Act Amendments of 1990
set a goal of reducing annual sulfur dioxide emissions. Reductions in SO2
emissions are facilitated through a market-based cap and trade system -- the
centerpiece of the EPA's Acid Rain Program. The new sulfur dioxide contracts
will allow more flexibility in trading attributable to the vintage mechanism
of this product. Compliance emitters under the EPA's Program can now have
physically delivered previous vintage SO2 certificates for compliance
purposes.

The contracts will be 25 SO2 emission allowance units in size with a minimum
price fluctuation of $0.10 per SO2 emission allowance ($2.50 per contract).
The first listed month will be the August 2009 contract. Contracts without a
specified vintage year will be listed for 36 consecutive months. Contracts
with a specified vintage year will be listed for two front months and two
front Decembers.

The unit size and termination date differentiate these contracts from the
existing SO2 emission allowance futures and option contracts, which will
continue to be available for trading. 

It is intended that these products will be listed for trading as part of the
Green Exchange venture once that venture has sought and achieved appropriate
regulatory status. The Green Exchange venture will be working with U.S. and
European regulators and intends to seek recognition in the U.S. as a
designated contract market and approval from the FSA in the U.K. CME Group is
one of the founding members of Green Exchange Holdings LLC. 

For more information, please visit www.cmegroup.com. 

CME Group (www.cmegroup.com) is the world's largest and most diverse
derivatives exchange. Building on the heritage of CME, CBOT and NYMEX, CME
Group serves the risk management needs of customers around the globe. As an
international marketplace, CME Group brings buyers and sellers together on the
CME Globex electronic trading platform and on trading floors in Chicago and
New York. By acting as the buyer to every seller and the seller to every
buyer, CME Clearing virtually eliminates counterparty credit risk. CME
Clearing also offers financial safeguards to help mitigate systemic risk,
providing the security and confidence market participants need to operate,
invest and grow. CME Group offers the widest range of benchmark products
available across all major asset classes, including futures and options based
on interest rates, equity indexes, foreign exchange, energy, agricultural
commodities, metals, and alternative investment products such as weather and
real estate. CME Group is listed on NASDAQ under the symbol "CME."

The Globe logo, CME, Chicago Mercantile Exchange, CME Group, Globex, E-mini
and CME ClearPort are trademarks of Chicago Mercantile Exchange Inc. CBOT and
Chicago Board of Trade are trademarks of the Board of Trade of the City of
Chicago. NYMEX and New York Mercantile Exchange are trademarks of New York
Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All
other trademarks are the property of their respective owners. Further
information about CME Group and its products can be found at www.cmegroup.com.
 

CME-G


SOURCE  CME Group

Media, Anu Ahluwalia, +1-212-299-2439, or Allan Schoenberg, +1-312-930-8189,
news@cmegroup.com, or Investor Contact, John Peschier, +1-312-930-8491, all of
CME Group
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.