VOLUME 27 – BULLETIN #030
TO:
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ALL CLEARING PARTICIPANTS
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FROM:
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CLIENT SERVICES AND SUPPORT
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DATE:
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August 2, 2007
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SUBJECT:
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Chicago Climate Exchange Carbon Financial Instrument Futures
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Chicago Climate Exchange (CCX), an all-electronic exchange, will trade the following futures contract that will be cleared by CCorp.
Exchange Code:
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03
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Commodity Code:
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WC
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Contract Size:
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1000 metric tons of CCX CO2 (representing 10 CCX Carbon Financial Instrument cash market contracts (“CFI”)
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Quotation
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U.S. Dollars
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Minimum Tick Increment
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$0.01 per ton = $10
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First Trading Day:
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The first trading day of a standard cycle contract is the first business day following an expiration day of standard cycle contract.
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Last Trading Day
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The last trading day of a contract is the last business day of the expiration month.
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Deliverable Instruments
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Chicago Climate Exchange Carbon Financial Instrument equal to the contract size. Carbon Financial Instruments acceptable for delivery are those having a vintage corresponding to the calendar year of the expired contact and allowances having a vintage of any year prior to the calendar year of the expired contract.
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Delivery Process
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In order to make or take physical delivery of Carbon Financial Instrument, a participant must be a member of the Chicago Climate Exchange, Inc. with CCX Trading Platform eligibility and have an established CCX Registry Account prior to expiration of any Carbon Financial Instruments futures contract.
Delivery is based on open positions after the contract’s expiration. Delivery is a three day process.
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Trading Hours (CT):
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7:00 a.m. – 3:00p.m. Central Time
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Contract Months:
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Standard-cycle contract listings:
• Six consecutive quarterly contracts on a March, June, September, December cycle
• Front three serial calendar months
Annual December contracts through 2010
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Reportable Position Limits:
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25 contracts
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Nearby Expiration Month Speculative Position Limits:
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4,000 contracts
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Trade Management:
MQM add duplication messages will be sent to the Clearing Participants back office systems in the TREX record format. Clearing Participants may submit MQM change records to CCorp to change non-critical trade information, or mark a trade as a give-up. Clearing Participants can also mark trades as give ups via the CCorp Trade Management system. Current GAPI processing between CCorp and the Clearing Participant will be used.
Position Management:
Clearing Participants should submit open interest to CCorp, either by submitting an Open interest FTP file or using the web based Position Management System. Position Management also allows participants users to perform intra-day position adjustments and intra firm transfers. Below are the process and availability.
Process
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Application
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Available
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DUE
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Final Open Interest File Due
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FTP Put
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Anytime during current business day
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8:00 p.m.
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Final Open Interest
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Position Management
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7:15 p.m.
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8:00 p.m.
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Online verification of final open interest
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Position Management
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7:15 p.m.
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8:00 p.m.
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Adjustments to final open interest
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Position Management
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After end of day final processing
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10:00 a.m. next business day.
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Position Adjustments
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Position Management
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10:15 a.m.
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7:00 p.m.
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Intra-firm position adjustments
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Position management
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After end of day final processing
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7:00 p.m.
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Validation of Final Open Interest:
Participants can only submit one final position record by origin for each valid contract that it is currently trading in and/or holding positions in. CCorp will perform a maximum long and minimum long calculation for each final position reported. The calculation will be performed using the participant’s incoming prior day position, adjustments, current day’s buys, current day’s sells, transfers, exercises (if applicable), and deliveries (if applicable). If a participant’s submitted final position falls outside these calculated parameters, the final reported position will be in error. Participants have the opportunity to review and update errors prior to final processing, please refer to table above. If a firm fails to update an error, CCorp will adjust the final long position as close as possible to the firm’s reported position using the current day’s activity. Furthermore, CCorp will assume any activity in a contract that a participant does not report a final position in will be adjusted as closing positions. Additionally, futures created form option assignments will be considered closing positions.
Should you have any questions, please call or e-mail one of the following Client Services and Support Representatives:
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