MERCHANDISER
CHICAGO CLIMATE FUTURES EXCHANGE (CCFE), a CFTC bon market,” said Dr. Richard Sandor, Chairman and CEO.
regulated Designated Contract Market, has begun trading “This market will require price transparency and efficient,
Regional Greenhouse Gas Initiative (RGGI) futures and exchange-based systems for maximum success. As RGGI
options contracts, each of which represent 1,000 RGGI evolves, CCFE will uniquely be able to provide a wealth of
allowances. experience and linkage with other global greenhouse gas
RGGI is the CO
2
cap-and-trade emissions trading pro- emissionstradingsystems.”
gramme comprised of ten New England and mid-Atlantic TheNewYorkMercantileExchange(NYMEX)becamethe
states that will commence in 2009. RGGI will be the first second exchange to launch a RGGI allowance futures con-
government-mandated CO
2
emissions trading programme tract.NYMEXhasalsolaunchedaRGGIoptionscontract.
December2009willbe
CCFE&NYMEXFirstforRGGI
the first listed month for
both the futures and
options contracts with
intheUnitedStates.Theofferingofthecontractscomesto morecontractmonthstobeadded,saidNYMEX.
meetthedemandofseveralofthelargestpowerproducers Thecontractswillallowmarketparticipantstohedgeprice
in the region that are already members of CCFE and the riskaheadofthefirstregionalauctionofRGGIallowances
Chicago Climate Exchange (CCX) for a low cost, transpar- (RGAs)on25
th
September.
ent,andstandardisedplatformtohedgeagainstpricefluc- LiketheCCFERGGIcontract,thesizeofaNYMEXfutures
tuationsintheRGGICO
2
emissionsmarket. contract will be 1,000 RGGI CO
2
allowances with a mini-
“Withthelaunch...CCFEprovidesthegatewayforpartic- mumpricefluctuationofUS$0.01perallowance.
ipants to hedge positions in the US’s first mandatory car-
www.cmegroup.com
PLANS ARE IN EXECUTIONtobuild includingsteelandlivehogs. Mr.AngSweeTian,Chairmanof
andtradeonapan-Asiancommodity DeputyChairmanoftheMonetary SMXsaid,“Financialmarketsand
exchangeby2009inSingapore.The AuthorityofSingapore(MAS)and commoditymarketsareverytightly
newSingapore Mercantile Exchange MinisterofTradeandIndustry,Mr. coupled.Thenewexchangewilladd
(SMX)isbeingdesignedtoprovidea LimHngKiangwastheguestof tothestatureofSingaporeasa
platformforfuturesandoptions honourattheGlobalFinancial globalfinancialcentreandmore
tradinginbaseandpreciousmetals, MarketSummit2008whereplans investmentswillflowintoSingapore,
energy,agriculturals,currencypairs, wereannouncedtosetupSMX. asitbecomesaone-stopfinancial
carboncreditsandcommodity Mr.JigneshShah,Chairmanand andtradinghub.”
indices,accordingtoFinancial CEOofFinancialTechnologies,also “Singaporeranksamongthetop
Technologieswhoarespearheading announcedtheBoardandAdvisory threeinternationalfinancialcentres
theproject. BoardofSMXcomprisingofeminent intheworldtodayalongwithNew
YorkandLondonwithanestablished
SingaporeMercAnnounced
tradingandcommodityhub,anopen
economy,robustregulatory
frameworkunder[the]Monetary
“WeexpectAsiatoleadthegrowth AuthorityofSingapore,athriving
inthecommoditiesmarketsinthe port,businessfriendlyenvironment,
nextfewyears,”saidChairmanofthe anditsgeographicallocation–
SMXadvisoryboard,LeoMelamed,in makingitanidealdestinationtohost
apressrelease. aninternationalcommodity
“Marketparticipantsaroundthe derivativesexchangelikeSMX.Also
worldwillbenefitfromprice marketsarethebarometerofgrowth
discoveryofcommoditiesinAsia. foranyeconomyandSMXwillbethe
TheSMXwillbeabarometerforthe growthengineforAsiafrom
dynamicdemand-supply
fundamentalsinthisregion.”
Mr. Jignesh Shah
Singaporewithrestoftheworld–
at the SMX announcement
throughtransparentpricediscovery,
Theexchangewillhaveaninitial efficienttransactionexecution,price
capitalisationofSG$50million(US$ andhighlydistinguishedpersonalities volatility,[and]riskhedging–andwill
37million). fromtheworldoffinance. propagatestructuredprivateand
ThemovecomesafterHongKong Mr.LimHngKiangsaid,“The publicinvestmentdeepintothe
disclosedplanstolaunchtheHong FinancialTechnologiesGroup’s economy,”saidShah.
Kong Mercantile Exchange(HKMEx) interesttoestablishSMXin SMXiscurrentlyintheprocessof
thatwilltradefueloilcontractsfor Singapore,withincloseproximityto obtainingthenecessaryregulatory
themainlandChinesemarket. theregion’slargestproducersand approvalsfromMAS.
InChina,marketsinShanghaiand consumersofseveralcommodities,
Dalianarelookingtoexpandinto underscoresSingapore’spositionasa
www.smx.com.sg
tradingfuturesforcommodities keycommoditiestradinghub.”
28 SEPTEMBER2008 COMMODITIES NOW
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