CME Group Launches Sustainable Clearing Service
September 20 2021 - 7:04AM
Dow Jones News
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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