ICE to Launch UK Carbon Allowance Options

LONDON--(BUSINESS WIRE)--Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology, and market infrastructure, today announced that it plans to launch options on UK Carbon Emission Allowances (UKA Options) on October 10, 2022, subject to regulatory approval.

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“The launch of UK Carbon Options follows the successful launch of the UK carbon market last year and should provide a meaningful new tool for our customers to manage carbon emissions price risk,” said Gordon Bennett, Managing Director of Utility Markets at ICE. “Each day, ICE’s global environmental markets provide price signals for negative and positive externalities to help conserve the world’s carbon budget. Environmental considerations are touching a much wider spectrum of companies who will need to manage emissions pricing in their business models as part of their net zero commitments.”

ICE expects to list UKA Options out to March 2024. The underlying contract will be the December UKA futures contract for the relevant year. For example, the underlying contract for the March 2023 options will be the December 2023 UK Carbon Allowance future.

ICE launched UK carbon allowance futures in May 2021, alongside launching emissions auctions on behalf of the UK Government as part of the UK’s new emissions trading scheme. Each lot of UK Carbon Allowance futures is equivalent to 1000 UK Allowances where each allowance equals an entitlement to emit one tonne of carbon dioxide equivalent gas. Roughly 775 million tonnes of carbon dioxide equivalent gas have traded on ICE through the UKA contract since launch, while open interest has grown to the equivalent of approximately 47 million tonnes.

ICE has operated environmental markets for almost two decades. During this time, allowances equivalent to over 100 billion tonnes of carbon, over 250 million renewable energy certificates, three billion carbon credits, and the equivalent of over 1.7 billion Renewable Identification Numbers have traded on ICE, reflecting ICE’s role as the world’s leading environmental marketplace.

For information on how to trade UKA Options, please contact [email protected].

About Intercontinental Exchange

Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services across major asset classes that offer our customers access to mission-critical workflow tools that increase transparency and operational efficiencies. We operate exchanges, including the New York Stock Exchange, and clearing houses that help people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income data services and execution capabilities provide information, analytics and platforms that help our customers capitalize on opportunities and operate more efficiently. At ICE Mortgage Technology, we are transforming and digitizing the U.S. residential mortgage process, from consumer engagement through loan registration. Together, we transform, streamline and automate industries to connect our customers to opportunity.

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