ICE to launch UK carbon emissions options in October
Reuters
Published Aug 25, 2022 14:06
LONDON (Reuters) - Intercontinental Exchange Inc (ICE (NYSE:ICE)) said on Thursday it will launch UK carbon emission allowance options on October 10, subject to regulatory approval.
Britain launched its own emissions trading system (ETS) last year to replace the European Union's ETS after it left the bloc.
Under the scheme, UK industrial firms and power plants have to buy a UK emissions allowance for every tonne of carbon dioxide they emit.
They can also sell allowances which they do not need to cover their output on the market.
ICE launched UK carbon allowance futures in May last year and it holds regular auctions of permits on behalf of the UK government.
ICE said it will list expects to list UK options to March 2024. The underlying contract will be the December UK emissions allowance futures contract for the relevant year.
Options are contracts giving a buyer the right to buy or sell an underlying asset at a specific price and date and are usually used to hedge risk.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.