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CER Futures- Contract Specifications

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Unit of Trading One lot of 1,000 Certified Emission Reduction units (CER) (i.e. units issued pursuant to Article 12 of the Kyoto Protocol and the decisions adopted pursuant to the UNFCCC to the Kyoto Protocol with the exception of allowances generated by hydroelectric projects with a generating capacity exceeding 20MW, LULUCF activities and nuclear facilities). Each CER being an entitlement to emit one tonne of carbon dioxide equivalent gas.
Minimum trading size 1 lot.
Quotation Euro (€) and Euro cent (c) per metric tonne.
Tick size €0.01 per tonne (i.e. €10.00 per lot).
Minimum/maximum price fluctuation €0.01/no limit.
Contract months Contracts are listed on an quarterly expiry cycle such that March, June, September and December contract months are listed up to March 2013.
Expiry day

Last Monday of the Contract month. However, if the last Monday is a Non-Business Day or there is a Non-Business Day in the 4 days following the last Monday, the last day of trading will be the penultimate Monday of the delivery month. Where the penultimate Monday of the delivery month falls on a Non-Business Day, or there is a Non-Business Day in the 4 days immediately following the penultimate Monday, the last day of trading shall be the antepenultimate Monday of the delivery month.

The Exchange shall from time to time confirm, in respect of each contract month, the date upon which trading is expected to cease. The Exchange will, from time to time, issue a list of Registries from which ICE Clear Europe will accept and will deliver CERs. Initially, this will be restricted to the UK Registry.

Trading system Trading will occur on the ICE Futures Europe electronic trading platform known as the ICE Platform accessible via Web ICE or through a conformed Independent Software Vendor.
Trading hours 07:00 hours to 17:00 hours UK Local Time.
Settlement prices Trade weighted average during the daily closing period (16:50:00 – 16:59:59 hours UK Local Time) with Quoted Settlement Prices if low liquidity.
VAT and taxes The UK's HM Revenue and Customs have confirmed that the trading of the ICE ECX CER Futures  contracts on the Exchange between the Clearing Member and ICE Clear Europe is zero-rated for VAT purposes under the terms of the Terminal Markets Order. Clearing Members are advised to seek their own advice in relation to the VAT treatment on the transfer of allowances between themselves and their client or for allowances used for their own purposes. Normal VAT rules apply between Clearing Members and their customers on delivery according to the rules of the country in which delivery occurs.
Delivery The contracts are physically deliverable by the transfer of CERs from the Person Holding Account of the Selling Clearing Member at a Registry to the Person Holding Account of ICE Clear Europe at a Registry and from the Person Holding Account of ICE Clear Europe at that Registry to the Person Holding Account of the Buying Clearing Member at a Registry. Initially this will be restricted to the UK Registry. Delivery is between Clearing Members and ICE Clear Europe during a Delivery Period. The Delivery Period is the period beginning at 19:00 hours on the Business Day following the last trading day and ending at 19:30 hours on the third Business Day following that last trading day. There is provision for ‘Late’ and ‘Failed’ delivery within the contract Rules.
Clearing and contract security ICE Clear Europe will act as central counterparty to all trades and guarantees the financial performance of the ICE Futures contracts registered in the name of its Members.
Margin Variation and initial margin will be charged in the usual manner by ICE Clear Europe.

ECX CER Futures Contract Specifications

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CER Explanatory Memorandum

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