OTC Emissions
LCH.Clearnet is pleased to announce that it will be re-launching its OTC Clearing service for Forward Emissions allowances (EUA’s) and launching a new OTC Clearing service for CER’s (Certified Emission Reductions). These contracts will be covered under the LCH EnClear OTC service, which provides a platform independent clearing service for OTC contracts.
The service will allow for EUA’s and CER’s, previously concluded by bilateral parties through OTC brokers or directly, to be registered with LCH.Clearnet for clearing. Positions that subsequently remain open at a contract’s expiry will be delivered to and from LCH.Clearnet’s account at a registry.
Standard Terms
| Description | Physically settled forward contract for the delivery of EU Allowances issued in accordance with the terms of Directive 1003/87/EC. |
|---|---|
| Lot Size | One lot is equal to 1000 EU Allowance units. A unit being the right to emit 1 tonne of CO2 equivalent. |
| Minimum Contract Size | One Lot |
| Currency | Euros (€) |
| Minimum Tick Size | One Euro cent per tonne, €0.01/tonne |
| Settlement Price | LEBA EUA closing price or such or other price as may be prescribed by the Clearing House from time to time. |
| Contract Series | A total of 5 December contract months on an annual cycle commencing December 2008 and ending December 2012. |
| Business Days | UK business days |
| Expiry Day | Contracts will expire at 17:00 on the first business day of the contract month. |
| Delivery | Delivery is fulfilled by the transfer of EU Allowances from the Holding Account of the Seller to the Holding Account of LCH.Clearnet Ltd and from there to the Holding Account of the Buyer. |
| Description | Physically settled forward contract for the delivery of Certified Emissions Reductions issued pursuant to Article 12 of the Kyoto Protocol that may be used for determining compliance with emissions limitation commitments in accordance with the EU Emissions Trading Scheme. |
|---|---|
| Lot Size | One lot is equal to 1000 Certified Emission Reductions units. A unit being the right to emit 1 tonne of CO2 equivalent. |
| Minimum Contract Size | One lot |
| Currency | Euros (€) |
| Minimum Tick Size | One Euro cent per tonne, €0.01/tonne |
| Settlement Price | LEBA CER closing price or such or other price as may be prescribed by the Clearing House from time to time. |
| Contract Series | A total of 5 December contract months on an annual cycle commencing December 2008 and ending December 2012. |
| Business Days | UK business days |
| Expiry Day | Contracts will expire at 17:00 on the first business day of the contract month. |
| Delivery | Delivery is fulfilled by the transfer of CERs from the Holding Account of the Seller to the Holding Account of LCH.Clearnet Ltd and from there to the Holding Account of the Buyer. |
Expiry Calendar
| Contract Series | Expiry Date |
|---|---|
| Dec08 | 01/12/2008 |
| Dec09 | 01/12/2009 |
| Dec10 | 01/12/2010 |
| Dec11 | 01/12/2011 |
| Dec12 | 03/12/2012 |
| Contract Series | Expiry Date |
|---|---|
| Dec08 | 01/12/2008 |
| Dec09 | 01/12/2009 |
| Dec10 | 01/12/2010 |
| Dec11 | 01/12/2011 |
| Dec12 | 03/12/2012 |
When available, margin rate information will posted on the LCH EnClear section of the Margin Rate page.
http://www.lchclearnet.com/risk_management/ltd/margin_rate_circulars/
Fee rates will be made available on the LCH EnClear section of the Tariff page.
http://www.lchclearnet.com/tariffs/ltd/transactions/
Useful Documents
For further information regarding the LCH.Clearnet clearing services for CER and EUA contracts please refer to the OTC Emissions Service Guide available below.
LCH EnClear OTC Emissions Service Guide
Contact Information
| General enquiries Jason LaBrooy | jason.labrooy@lchclearnet.com | +44 (0)20 7426 6323 |
Membership Dee Kalsi | dee.kalsi@lchclearnet.com | +44 (0)20 7426 7891 |
Training Lisa Colclough | lisa.colclough@lchclearnet.com | +44 (0)20 7426 7063 |