By Michael Dabaie

 

Derivatives marketplace CME Group said it launched a sustainable clearing service.

The company said the clearing service will help market participants track and report on how their hedging activities are advancing their sustainability goals. The service will be available from Sept. 27.

Sustainable derivatives encompass both the trading products such as carbon offsets, battery metals and bioenergy, as well as interest rate and foreign exchange futures hedging activity to support a sustainable business.

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, like the International Capital Markets Association Social & Green Bond Principles.

"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," said Julie Winkler, chief commercial officer of CME Group.

 

Write to Michael Dabaie at michael.dabaie@wsj.com

 

(END) Dow Jones Newswires

September 20, 2021 07:49 ET (11:49 GMT)

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