HKEx Publishes Consultation Paper on Certified Emission Reduction Futures
Hong Kong Exchanges and Clearing Limited (HKEx) today (Friday) published a consultation paper on certified emission reduction (CER) futures.
The consultation paper seeks views and comments from all individuals and organisations interested in emissions markets, including financial intermediaries, investors, Clean Development Mechanism project participants and public policy makers, on the business feasibility of developing an emissions trading platform in Hong Kong and CER futures as a product concept.
The consultation paper includes:
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A potential design for CER futures which may be suitable for exchange trading in Hong Kong; |
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Some comments and views shared by emission market players in Hong Kong, Singapore, Australia and the UK who met with HKEx executives for informal discussions of CER futures contract specifications; and |
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Six questions for potential respondents’ consideration. |
Some of the questions cover specifics, while others are relatively broad. For instance, Question 5 invites explanations of any issues related to the introduction of CER futures not mentioned in the consultation paper that HKEx ought to consider, and Question 6 seeks comments on the overall development of emissions or pollutants trading markets in Hong Kong.
“We encourage everyone interested in this topic to read our consultation paper and submit their views, and we welcome any information on the development of the carbon emissions markets that people think may be useful to us,” said Calvin Tai, Head of HKEx’s Derivatives Market.
“We hope our Exchange and Clearing Participants will share their insight on the likely demand for CER futures trading in our market at this time,” Mr Tai added.
The consultation paper and questionnaire are posted on the HKEx website.
The deadline for the submission of comments is 31 August 2009.