ICE Expands its Global Environmental Complex With the Launch of UK Emissions Futures And Hosts First UK Emissions Auction

Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced that it has launched ICE UK Allowance (“UKA”) Futures contracts and today hosted the first auction of the UK Emissions Trading Scheme (“UK ETS”).

Today, 6,052,000 UK allowances were offered for auction and all allowances were sold during the auction. Auctions of UKAs take place every other Wednesday throughout the year, between 12.00 and 14.00 UK time. Auctions have a floor price of £22 per tonne.

ICE UK Allowance (UKA) futures contracts, which launched today, are equivalent to 1000 Allowances. UKA Daily Futures are due to be launched on May 21, 2021.

ICE UKA futures trade on ICE Futures Europe and clear at ICE Clear Europe alongside ICE’s global environmental complex, including European Union Allowances (EUA), California Carbon Allowances (CCAs) and California Carbon Offsets (CCOs).

From 2017 to 2020, the number of participants trading ICE’s carbon markets increased by more than 40%. Participants based in North America were the strongest contributor to this growth, increasing by more than 70%. Meanwhile, the number of participants trading both European and North American carbon markets at ICE grew by approximately 85%.

“The first UK carbon auction today has seen active participation by the market”, said Gordon Bennett, Managing Director, Utility Markets, ICE. “Market based mechanisms like emission trading schemes play a crucial role in helping customers reduce their carbon emissions by attributing a cost to pollution. Now, there is an enormous opportunity for cap and trade programs to take an even greater role in supporting customers’ carbon reduction goals, whether it is increasing their sector coverage or encouraging international linking.”

ICE has been a leader in environmental markets for over two decades and offers customers access to the largest and most liquid environmental markets in the world.

More than 14 gigatonnes of carbon trades on ICE annually, which is equivalent to approximately 40% of the world’s total annual energy-related emissions footprint based on current estimates. A wide and increasing group of stakeholders use the price signals from ICE’s global markets and indices to help assess climate transition risk in their portfolios, and access liquidity pools for compliance purposes, managing risk and allocating capital to benefit from energy transition opportunities.

Full details of the UK Allowance (UKA) auctions, including the auction calendar and auction results, can be found here alongside FAQs. Market participants who are interested in bidding in UK ETS auctions should contact sales-utilities@ice.com.

About Intercontinental Exchange

Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services across major asset classes that offer our customers access to mission-critical workflow tools that increase transparency and operational efficiencies. We operate exchanges, including the New York Stock Exchange, and clearing houses that help people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income data services and execution capabilities provide information, analytics and platforms that help our customers capitalize on opportunities and operate more efficiently. At ICE Mortgage Technology, we are transforming and digitizing the U.S. residential mortgage process, from consumer engagement through loan registration. Together, we transform, streamline and automate industries to connect our customers to opportunity.

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Source: Intercontinental Exchange

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