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Montreal Climate Exchange - Carbon futures contract to be launched by year end
Montreal Climate Exchange - Carbon futures contract to be launched by year end.
About this update from Stampede Drilling Inc.
[{"type":"text","content":"\n\n\n\nCarbon Price Signal and Risk Management Tools\n\n\nMONTREAL, July 25 /CNW Telbec/ - Montreal Exchange Inc. (MX) (TSX: MXX)\nand the Chicago Climate Exchange (CCX) announced today a plan to launch a\nMontreal Climate Exchange carbon futures contract by the end of 2007.\n\n\n"MX and CCX, the partners in the Montreal Climate Exchange (MCeX), have\ndecided to launch trading in futures products based on underlying Canadian\ncredits for emissions of greenhouse gases," said Luc Bertrand, President and\nCEO of MX, and Chairman of MCeX. "Our decision is based on a careful\nassessment of the federal government's air emissions policy and consultations\nwith potential market participants, including large industrial emitters. We\nanticipate growth in demand for environmental derivatives. These products will\nenable industrial participants to manage their emissions risks at the lowest\ncost while also creating continuous incentives for technological innovation.\nWe are pleased to announce the launch of the first publicly traded carbon\nfutures contract in Canada."\n\n\n4th Quarter Launch\n\n\nThe MCeX carbon futures contract will be launched during the fourth\nquarter of 2007, subject to regulatory approval. The launch target reflects a\ntimetable of consultations involving the federal government, financial market\nregulators and market participants concerning design aspects of the Emissions\nTrading System, product standards and market rules.\n\n\n"The MCeX team assessed the federal government's air emissions regulatory\nframework and concluded that it meets the minimum conditions for the creation\nof a futures market," Mr. Bertrand said. "The proposed federal government\nregulatory framework is currently under consultative review. We will work\nclosely with the government to ensure continued progress in establishing the\nproper environment for the launch of trading. In particular, we are confident\nthat Ottawa will provide industry with a higher degree of policy certainty\nregarding emissions reduction targets and the definition of a single standard\nfor tradable credits."\n\n\n"We are also working closely with Canadian market participants to\nunderstand and respond to their specific needs - they are the ones who will\nultimately trade MCeX products," Mr. Bertrand added.\n\n\n"I...