Tullett Prebon has facilitated the first trade of the Australian Carbon Credit Unit (ACC) CME-listed futures contract. The trade occurred on 13 October 2024, through Tullett Prebon’s Singapore-based Carbon and Renewables desk.
The ACC CME-listed futures contract was first announced in September 2024 and officially launched for trading on October 13, 2024. This contract materialized from a collaboration between Xpansiv and CME Group. Xpansiv is an integrated market infrastructure provider, Platts, and CME Group. The new futures contract is based on Xpansiv’s standardized spot ACCU Generic contract, settled using the CBL-Platts ACCU price assessment. Tullett Prebon’s Carbon and Renewables desk in Singapore facilitated the first trade of the ACC CME-listed futures contract.
The ACC CME-listed futures contract settles on the CBL-Platts ACCU price assessment. CME Group launched the new CBL ACCU futures contract, using Xpansiv’s CBL spot instrument as its underlying asset. This ensures standardized and transparent pricing for carbon credits.
This move will have the following effects on users:
The ACC CME-listed futures contract offers a new avenue to diversify portfolios. Australian Carbon Credit Units (ACCU) are now accessible through a standardized futures contract. It provides a structured way to invest in carbon markets.
With Tullett Prebon facilitating the first trade, market liquidity for ACC futures will grow. This makes it easier for traders to enter and exit positions without large price fluctuations.
The settlement of the ACC futures contract is tied to the CBL-Platts ACCU price assessment. It will ensure transparent and consistent pricing.
Traders can now use the ACC CME-listed futures contract as a tool for managing risks associated with carbon credit prices. They can hedge against price volatility in the carbon markets by trading futures.
The first trade facilitated by Tullett Prebon in Singapore shows international engagement. Both domestic and international investors can now participate in a growing carbon credit market.
Tullett Prebon is one of the world’s largest inter-dealer brokers. It operates as part of the TP ICAP Group. It serves as an intermediary in wholesale financial markets. The company facilitates trades across varied asset classes including fixed income, commodities, energy, and derivatives. The firm primarily works with clients like commercial and investment banks, hedge funds, and corporate trading houses.
The successful first trade will drive increased interest in the ACC futures contract. Domestic and international participants will engage more with the market, as Australian Carbon Units are recognized for their high quality.
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