CHICAGO and LONDON,
Sept. 20, 2021 /PRNewswire/
-- CME Group, the world's leading and most diverse derivatives
marketplace, today announced the launch of the derivatives
industry's first-ever Sustainable Clearing service to help market
participants track and report on how their hedging activities are
advancing their sustainability goals. The service will be available
from September 27, 2021.
Sustainable derivatives encompass both the trading of products
such as carbon offsets, battery metals and bioenergy as well as
interest rate and foreign exchange futures hedging activity that is
carried out to support a sustainable business.
"Sustainability continues to be an increasing priority for our
global clients as they significantly expand both the risk
management that they provide to green businesses and environmental
projects," said Julie Winkler, Chief
Commercial Officer, CME Group. "This new framework for clearing
sustainable derivatives will make it easier for our clients to
measure the impact of their support for sustainable activities and
can be part of the solution to encourage further growth in this key
sector as the economy transitions to net-zero emissions."
"This innovative clearing offering makes it simple for firms to
track their sustainable derivatives positions by seamlessly
integrating reporting into their existing workflows," said
Sunil Cutinho, President, CME
Clearing. "Our solution ensures that all sustainable trades
continue to benefit from our established risk management approach,
including full margin offsets where applicable, which creates
efficiencies for clients and end users."
"As the bank for a changing world, we consider it our duty to
assist our clients in reaching their sustainable related goals
through the Sustainable Clearing service," said Raphael Masgnaux,
Global Head of Prime Solutions and Financing and G10 Rates, BNP
Paribas.
"As a firm believer in how finance can catalyse a positive
impact on our environment, Standard Chartered is delighted to have
contributed to CME's Sustainable Clearing solution and support the
sustainable agenda of market participants," said Mick Hill, Global Product Owner, Exchange Traded
Derivatives, Standard Chartered Bank.
All participating futures commission merchants will be provided
with Sustainable Clearing eligibility criteria to identify and tag
their sustainable trades. The eligibility criteria will be aligned
to external standards, such as the International Capital Markets
Association (ICMA) Social & Green Bond Principles. CME Group
will be 'criteria neutral' to ensure that only independent
third-party standards are applied.
The criteria and governance of Sustainable Clearing will be
administered by CME Benchmark Administration Limited, an
independent legal entity within CME Group, that manages and
operates the company's benchmarks and indices. A robust governance
framework and an inclusive criteria committee based on ICMA
principles will ensure that Sustainable Clearing operates with
integrity and transparency, staying close to relevant standards in
the industry as they evolve and mature.
For more information on Sustainable Clearing and details on how
trades will be defined and allocated please
visit: www.cmegroup.com/sustainable-clearing.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) enables clients to trade futures,
options, cash and OTC markets, optimize portfolios, and analyze
data – empowering market participants worldwide to efficiently
manage risk and capture opportunities. CME Group exchanges offer
the widest range of global benchmark products across all major
asset classes based on interest rates, equity
indexes, foreign exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex® platform, fixed
income trading via BrokerTec and foreign exchange trading on the
EBS platform. In addition, it operates one of the world's
leading central counterparty clearing providers, CME
Clearing.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and, E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT and Chicago Board
of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are trademarks of New York
Mercantile Exchange, Inc. COMEX is a trademark of Commodity
Exchange, Inc. BrokerTec and EBS are trademarks of BrokerTec Europe
LTD and EBS Group LTD, respectively. Dow Jones, Dow
Jones Industrial Average, S&P 500 and S&P are service
and/or trademarks of Dow Jones Trademark Holdings LLC, Standard
& Poor's Financial Services LLC and S&P/Dow Jones Indices
LLC, as the case may be, and have been licensed for use by Chicago
Mercantile Exchange Inc. All other trademarks are the property
of their respective owners.
CME-G
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SOURCE CME Group