Exchange-for-Swap (EFS)

The EFS mechanism works in a similar way to EFP, the only difference being that with an EFP trade the underlying is a physical contract whereas with EFS the underlying is a financial contract. In the emissions market, the EFP facility is utilised by market participants to clear OTC forward contracts and the EFS facility to clear OTC options or swap contracts.

 Please read the ICE Guidance document for full details regarding the use of EFSs.

The Exchange offers an EFS facility for participants in the emissions markets to use the ICE ECX EUA and CER Futures Contract to mitigate their OTC risk exposures by registering their positions with the Exchange for clearing by ICE Clear Europe.

EFSs help participants to manage their counterparty risk exposures and benefit from the security provided by the Exchange’s delivery mechanism and ICE Clear Europe's financial guarantee. The EFS facility allows Members to register futures trades linked to swap transactions.  EFS transactions in respect of options for an expiring contract month cannot be registered after the cessation of trading for the relevant expiring contract month.

Please read the trading procedures regarding the registration of EFS trasnactions included in the link to the Guidance document above.