CFTC seeks to boost oversight of carbon futures

WASHINGTON (Reuters) - The U.S. Commodity Futures Trading Commission on Monday proposed increasing federal oversight of the Chicago Climate Exchange's carbon futures contract.

The CFTC used its new authority provided by Congress that gives the agency more oversight over futures contracts listed on exempt commercial markets that play an important role in setting the price for a commodity.

The Chicago Climate Exchange's carbon futures could become the second contract subject to the CFTC's new authority. Last month the agency boosted oversight of the IntercontinentalExchange's natural gas contract after it determined that the contract played a significant role in price discovery.

The CFTC will seek public comment on the carbon contract proposal for 15 days before making a final decision.

CCX officials could not be reached for comment.

The exchange's carbon futures contract is based on the value of 100 metric tons of carbon dioxide emissions.

CCX is North America's only active voluntary, legally binding trading system to reduce greenhouse gas emissions with offsetting projects.

Separately, CFTC Chairman Gary Gensler told Reuters in an interview that the agency expects to determine that even more futures contracts on exempt commercial markets should be subject to agency oversight because they play a big role in setting prices for the underlying commodities.

"This is not a small number," Gensler said. "We're going to have a series of these that we're going to try to put out in the next couple of months."

Gensler declined to provide details, but said they could include energy, metal, agricultural and financial contracts.

(Editing by Christian Wiessner)