NYMEX president and chief executive officer and member of the Green Exchange executive committee, James E Newsome, said: The Green Exchange is committed to being a leader among environmental exchanges, and our successful launch of the first-ever options contract for carbon offsets has demonstrated this. An initial week of trading under the CER options contract of more than one-million tonne is a great start. There is a clear need in the carbon market for these types of risk management tools, and they are particularly well-suited to the global trading platform available on the Green Exchange.
The contract, with commodity code VG, is an European style option that expires three business days prior to the expiration of the underlying CER futures contract. The initial contract months are December 2008, March 2009, June 2009, September 2009, December 2009, March 2010, June 2010, September 2010, December 2010, December 2011, and December 2012. The exchange currently offers environmental futures and options contracts that include the EUs carbon allowance futures.