Chicago Climate Futures Exchange (CCFE) announced it will launch futures on Sulphur dioxide emission allowances on 10 December.
CCFE received its futures contract market designation from Commodity Futures Trading Commission (CFTC) on 9 November. The new futures contract, called a Sulphur Financial Instrument (SFI) will be cleared at The Clearing Corporation.
CCFE decided to launch SFIs first because of the relationship to other energy markets, such as coal and natural gas. Richard Sandor, chairman and ceo of CCFE parent Chicago Climate Exchange (CCX), said the Sulphur futures launch is being driven by many of the same fundamental market characteristics as interest rate futures did in the mid-1970s.
"In bond futures, it was the rise in interest rates in 1973 after the Arab oil embargo," Sandor told reporters in Chicago last week. "What is it...