IntercontinentalExchange (NYSE: ICE), a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced that the UK’s financial regulator, the Financial Services Authority (FSA) has authorised ICE Futures Europe to operate as a Recognised Auction Platform (RAP).
The status of Recognised Auction Platform will allow ICE Futures Europe to auction emission allowances as part of Phase III of the EU Emissions Trading System (ETS), which commences in 2013. As a Recognised Investment Exchange and now a Recognised Auction Platform, ICE Futures Europe last week submitted a tender to auction emission allowances to the UK Government’s Department of Energy & Climate Change and plans to put forward further tenders as part of the Commission Auction Regulation and the next stage of the EU ETS.
“ICE Futures Europe is pleased to receive the status of Recognised Auction Platform by the Financial Services Authority. As the leading market for trading in European Emissions Allowances, ICE Futures Europe is well positioned to provide European auction facilities, fulfilling requirements which are an important aspect of Phase III,” said David Peniket, President, ICE Futures Europe.
ICE Futures Europe offers derivative contracts on three types of carbon units: ICE EU Allowances (EUAs), ICE Certified Emission Reductions (CERs) and the world’s first ICE Emissions Reductions Units (ERUs). ICE Futures Europe recently announced that it will introduce European Union Aviation Allowances (EUAAs) on February 27, 2012, subject to regulatory approval.
Annual volumes for ICE EUA Futures and Options products were a record 6.15 million contracts in 2011 (6,150 million tonnes of CO2), an increase of 23% on the previous year. Average daily volumes were 25,437 in January 2012 and open interest stood at 878,747 contracts as at February 17, 2012 for ICE EUA Futures and Options products.
