Emissions Products Overview

    In our emissions secondary market, we offer spot and derivatives trading of EU ETS allowances (EUA, EUAA), as well as related spreads.

    EUA Contract Specifications

    Contracts

    EEX EUA Spot (Daily Expiry)

    Underlying

    EU Allowances (EUA), which permit the emission of one tonne of carbon dioxide equivalent (directive 2003/87/EC)3

    Contract volume

    1,000 EUA (1 lot)

    Minimum lot size

    1 lot

    Minimum tick

    € 0.01 per EUA

    Minimum price flux

    € 10.00 per lot (€ 0.01 per EUA)

    Form of trading

    Continuous trading

    Fulfilment date

    First ECC business day after the conclusion of the contract for trades concluded before 4:00 p.m. CET. Trades after 04:00 p.m. are settled on the day after the first business day.

    Transfer of EUAs

    Participants are entitled to transfer EUAs held in escrow for them to a registry account specified by them. The transfer is executed at the latest on the first subsequent ECC business day.

    Sale of EUAs

    Sales need to be backed by a sufficient stock of EUAs in the internal delivery account at ECC. EUAs have to be transferred to the internal delivery account at ECC beforehand (EU-100-5016813-0-69).

    Please note that this document is for information purposes only and is not legally binding. The Contract Specifications available on EEX’s Website at Trading > Rules & Regulations alone are legally binding.

    3To differentiate between allowances (EUA and EUAA) for the 3rd trading period (TP3 Allowances) and allowances for the 4th trading period (TP4 Allowances), the spot products "SEME" and "SEMA" in the T7 trading system are each setup with two different maturities for technical reasons. The allowances for the 3rd trading period will only be tradable separately in the period from 1 January 2021 to 30 April 2021 (technical maturity "December 2021"). The allowances for the 4th trading period will be tradable from 1 January 2021 (technical maturity "December 2029"). Without prejudice to the right to use TP3 Allowances for settlement, only TP4 Allowances will be quoted from May 2021.

    Contracts EEX EUA Future (Monthly, Quarterly and Yearly Expiries)

    Underlying

    EU Allowances (EUA) permitting the emission of one tonne of carbon dioxide equivalent (directive 2003/87/EC)

    Delivery periods

    • Monthly futures: The current and the next 2 months, unless a December or Quarter Future expires at the respective maturity date
    • Quarterly futures: The current and the next 11 quarters unless a December future expires at the respective maturity date
    • Yearly futures: December maturities for the current and the next 8 years

    Contract volume

    1,000 EUA (1 lot)

    Minimum tick

    € 0.01 per EUA

    Minimum price flux

    € 10.00 per lot (€ 0.01 per EUA)

    Last trading day

    The Last Trading Day is  the  last  Monday  of  the  maturity  month  that  fulfills  the  following  prerequisite: 

    Neither this Monday nor one of the following four calendar days is a public holiday in Great Britain. If that specific Monday is not an exchange trading day at EEX, the Last Trading Day is the exchange trading day following that Monday

    Delivery

    The second ECC business day after the last trading day

     

    Fulfillment

    After payment of the purchase price, ECC transfers the purchased Emission Rights* into the internal account of the purchaser in the ECC internal account system and subsequently makes the corresponding changes in the ECC escrow accounts held at the registry.

    *For the fulfilment of futures with expiry in the months January, February, March or April of a calendar year, only those allowances shall be accepted which can be used for the settlement of obligations of the previous calendar year under Directive 2003/87/EC and which are clearly identifiable as such.

    Transfer of EUAs

    Participants are entitled to transfer EUAs held in escrow for them to a registry account specified by them. The transfer is executed, at the latest, on the first subsequent ECC business day.

    Please note that this document is for information purposes only and is not legally binding. The Contract Specifications available on EEX’s Website at Trading > Rules & Regulations alone are legally binding.

    Underlying

    The underlying is the EUA Dec Futures, which expires in the year specified in the respective option.

    Contract series

    An option series is the total number of call and put options (call and put) with the same underlying, the same exercise price and the same maturity which can be traded in the system. 

    At least three series with different exercise prices can be traded for each maturity; in this context, one exercise price is in the money, one exercise price is at the money and one exercise price is out of the money upon their introduction into trading.

    The management board of the exchange is entitled to change the number of tradable option series at any given time.

    Tradeable maturities

    At maximum the following maturities can be traded at EEX:

    - the current and the next 2 months (EUA Month Option), if no EUA Dec Option or EUA Quarter Option expires at the respective maturity date,
    - the current and the next 11 quarters (EUA Quarter Option), of no EUA Dec Option Expires at the respective maturity date,
    - the current and the next 8 December expiries (EUA Dec Option)

    Option style

    European style

    Option premium

    The buyer of an option contract is obliged to pay the price for the purchase of the right of option (option premium) on the ECC business day after the purchase. The premium is credited to the seller of the option on the same day.
    Pricing: in EUR per EUA to three decimal places; minimum price fluctuation: 0,001 € 0.001 per EUA.

    Fulfilment

    EEX EUA Futures Options will be exercised into EUA Futures contracts at the respective date.

    Last Trading Day

    Is the third exchange trading day prior to the Last Trading Day of the EUA Future underlying the option.

    Exercise

    The option will be exercised automatically on the last trading day if they are in the money in relation to the final settlement price* of the respective underlying future. Manual exercise by the trading participant is inadmissible.

    *    For Clarification: The settlement price or Intraday Fixing Price of the underlying future on the last trading day of the respective option maturity is applied. The Intraday Fixing Price of the EEX EUA Future underlying the option is the market value for the underlying instrument during the day and is determined by EEX as of 2 p.m. on the last trading day of the option and announced to the Exchange Participants in due time prior to the exercise. In this case, the automatic exercise will take place at 3 p.m.

    Please note that this document is for information purposes only and is not legally binding. The Contract Specifications available on EEX’s Website at Trading > Rules & Regulations alone are legally binding.

    Underlying The underlying is the EUA Dec Futures, which expires in the year specified in the respective option.

    Contract series

    An option series is the total number of call and put options (call and put) with the same underlying, the same exercise price and the same maturity which can be traded in the system. 

    At least three series with different exercise prices can be traded for each maturity; in this context, one exercise price is in the money, one exercise price is at the money and one exercise price is out of the money upon their introduction into trading.

    The management board of the exchange is entitled to change the number of tradable option series at any given time.

    Tradeable maturities

    At maximum the following maturities can be traded at EEX:

    - the current and the next 2 months (EUA Month Option), if no EUA Dec Option or EUA Quarter Option expires at the respective maturity date,
    - the current and the next 11 quarters (EUA Quarter Option), of no EUA Dec Option Expires at the respective maturity date,
    - the current and the next 8 December expiries (EUA Dec Option)

    Option style

    European style

    Option premium

    In the case of future-style options, the payment of the agreed option premium by the buyer is not made by a one-time payment after the purchase of the option, but only on the day the option expires or is exercised as final premium payment (see below). Additionally, during the holding period, a daily settlement based on the change in the option premium will take place in accordance with the Clearing Conditions of ECC AG. On the day of the conclusion of the transaction, daily settlement shall be affected on the basis of the agreed option premium and the daily settlement price, and subsequently on the basis of the daily settlement prices of the Exchange Day and the previous Exchange Day. The daily settlement may also result in an interim debit to the seller of the future-style option.

    Fulfilment

    EEX EUA Futures Options will be exercised into EUA Futures contracts at the respective date.

    Last Trading Day

    Is the third exchange trading day prior to the Last Trading Day of the EUA Future underlying the option.

    Exercise

    The option will be exercised automatically on the last trading day if they are in the money in relation to the final settlement price* of the respective underlying future. Manual exercise by the trading participant is inadmissible.

    *    For Clarification: The settlement price or Intraday Fixing Price of the underlying future on the last trading day of the respective option maturity is applied. The Intraday Fixing Price of the EEX EUA Future underlying the option is the market value for the underlying instrument during the day and is determined by EEX as of 2 p.m. on the last trading day of the option and announced to the Exchange Participants in due time prior to the exercise. In this case, the automatic exercise will take place at 3 p.m.

     


    CER Contract Specifications

    Contracts

    CER Spot

    Underlying

    Green Certified Emission Reductions (CER)* are certified emission reductions from Bilateral Projects** according to article 12 of the Kyoto Protocol and the Kyoto Protocol decisions of the United Nations Framework Convention on Climate Change (UNFCCC) in their respective valid version at the time of delivery, corresponding to one tonne of carbon dioxide or equivalent which can be used at the respective delivery day for means of compliance according to the valid rules EU ETS and which are freely transferred, including all projects except those involving the destruction of trifluoromethane (HFC-23) and nitrous oxide (N2O) from adipic acid production as well as large hydro projects exceeding 20MW (Spot market: CER; Derivatives market: CER Dec Future).

    * CERs generated from projects in countries listed by OFAC (www.treasury.gov), are excluded.

    ** Bilateral Projects: Projects which hold a letter of approval (LoA) from the project host country as well as a LoA from a designated national authority (DNA) of a contractual state according to Annex I of the Kyoto Protocol as part of the project documentation submitted and published by the UN

    Contract volume

    1,000 Certified Emission Reductions (CER)

    Minimum Lot Size

    1 contract or a multiple thereof.

    Pricing

    Two decimal digits after the point; this corresponds to €0.01 per Certified Emission Reduction

    Minimum price fluctuation

    EUR 10.00 (EUR 0.01 per CER x 1,000 t CO2).

    Form of Trading

    Continuous Trading

    Fulfilment Date

    On the first ECC business day after the conclusion of the contract.

    Sale of Certified Emission Reductions

    Sales are only permissible provided the seller has a sufficient stock of EU emission allowances in its internal delivery account at ECC. In the event that short sales which are inadmissible in this way are carried out, EEX reserves the right to have such position closed out on a compulsory basis upon a request by the clearing house ECC.

    Please note that this document is for information purposes only and is not legally binding. The Contract Specifications available on EEX’s Website at Trading > Rules & Regulations alone are legally binding.


    EUAA Contract Specifications

    Contracts

    EEX EUA Spot (Daily Expiry)

    Underlying

    EU Aviation Allowances (EUAA), which permit the emission of one tonne of carbon dioxide equivalent (directive 2003/87/EC)4

    Contract volume

    1,000 EU Aviation Allowances (EUAA)

    Minimum Lot Size

    1 contract or a multiple thereof.

    Pricing

    Two decimal digits after the point; this corresponds to €0.01 per EU Aviation Allowance.

    Minimum price fluctuation

    EUR 10.00 (EUR 0.01 per EUAA x 1,000 t CO2).

    Form of Trading

    Continuous Trading

    Fulfilment Date

    On the first ECC business day after the conclusion of the contract.

    Sale of EU Aviation Allowances

    Sales are only permissible provided the seller has a sufficient stock of EU emission allowances in its internal delivery account at ECC. In the event that short sales which are inadmissible in this way are carried out, EEX reserves the right to have such position closed out on a compulsory basis upon a request by the clearing house ECC.

    Please note that this document is for information purposes only and is not legally binding. The Contract Specifications available on EEX’s Website at Trading > Rules & Regulations alone are legally binding.

    4To differentiate between allowances (EUA and EUAA) for the 3rd trading period (TP3 Allowances) and allowances for the 4th trading period (TP4 Allowances), the spot products "SEME" and "SEMA" in the T7 trading system are each setup with two different maturities for technical reasons. The allowances for the 3rd trading period will only be tradable separately in the period from 1 January 2021 to 30 April 2021 (technical maturity "December 2021"). The allowances for the 4th trading period will be tradable from 1 January 2021 (technical maturity "December 2029"). Without prejudice to the right to use TP3 Allowances for settlement, only TP4 Allowances will be quoted from May 2021.

    Contracts

    EEX EUAA Future

    Underlying

    EU Aviation Allowances (EUAA), which permit the emission of one tonne of carbon dioxide equivalent (directive 2003/87/EC)

    Available delivery periods

    The current and the next 8 Decembers maturities

    Contract volume

    1,000 EU Aviation Allowances (EUAA)

    Pricing

    Two decimal digits after the point; this corresponds to €0.01 per EU Aviation Allowance.

    Minimum price fluctuation

    EUR 10.00 (EUR 0.01 per EUAA x 1,000 t CO2).

    Last trading day

    Last Monday of the contract month. In case, the last Monday is not an ECC business day (incl. UK Bank Holidays) or there is a Non ECC business day in the 4 days following the last Monday, the last day of trading will be the Monday before the last Monday of the contract month.

    Fulfillment

    After payment of the purchase price, ECC transfers the purchased Emission Rights* into the internal account of the purchaser in the ECC internal account system and subsequently makes the corresponding changes in the ECC escrow accounts held at the registry.

    *For the fulfilment of futures with expiry in the months January, February, March or April of a calendar year, only those allowances shall be accepted which can be used for the settlement of obligations of the previous calendar year under Directive 2003/87/EC and which are clearly identifiable as such.

    Delivery

    The second ECC business day after the last trading day.

    Please note that this document is for information purposes only and is not legally binding. The Contract Specifications available on EEX’s Website at Trading > Rules & Regulations alone are legally binding.


    FAQ - TP4 Transition

    In December 2020, the 3rd Trading Period (TP3) of the EU ETS will end. The deadline for surrender of allowances for 2020 is 30 April 2021. Emissions of the year 2020 can only be surrendered with TP3 allowances. However, TP3 allowances can also be surrendered for emissions of compliance years after 2020 (“banking”).

    In January 2021, the 4th Trading Period (TP4) of the EU ETS will start. TP4 allowances issued can only be surrendered for emissions of the compliance years from 2021 onwards. CERs cannot be surrendered anymore for emissions from 2021 onwards.

    Please be reminded that during January to April 2021, TP3 and TP4 allowances will be in circulation in parallel, but only TP3 allowances can be submitted for compliance obligations for 2020. After April 2021, both TP3 and TP4 allowances can be surrendered for compliance for 2021 or later years

    Please also consider the information that is published by the European Commission regarding the Start of Phase 4 and especially the Union Registry FAQs on phase 4 allowances.

    Spot

    Under the currently available TP3 spot market instrument, only TP3 allowances can be traded and delivered.

    A new TP4 spot instrument will be available from 25 January 2021 under which only TP4 allowances can be used for delivery. Delivery obligations from trades conducted from May 2021 will be either TP3 or TP4 allowances.

    The TP3 spot instrument will be discontinued by 30 April 2021. 

     

    Futures
    For Jan-April 2021 futures expiries, we will only accept TP3 allowances for the fulfilment of delivery obligations (see our EEX Contract Specifications):

    “For the fulfilment of futures with expiry in the months January, February, March or April of a calendar year, only those allowances shall be accepted which can be used for the settlement of obligations of the previous calendar year under Directive 2003/87/EC and which are clearly identifiable as such.”

    For the futures expiries from May 2021 onwards, both TP3 and TP4 allowances will be used for the delivery process.

    It is not planned to list any future expiries beyond December 2020. CER spot trading will be available until 30 April 2021.

    TP4 allowances are equally as eligible as TP3 allowances as margin collateral. General information on EUA as collateral is available on the ECC website.

    Linking of both schemes entered into force on 1 January 2020 – independent from transition into EU ETS Phase 4. This results in mutual recognition of EU and Swiss emission allowances on legislative and registry level, respectively. However, no changes to EUA/EUAA contract specifications are planned for the time being, i.e. only EUAs/EUAAs will be accepted or delivered under EEX’s contracts.


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    Expiry & Delivery Details

    Looking for contract expiry and delivery details?
    www.eex.com > Trading > Contract Details
     

    Margin Rates

    All margin rates can be found on ECC’s website at
    www.ecc.de > Risk management > Margining > Margin Parameter Files

    Delivery Process

    Read more on the delivery process at
    www.ecc.de > Operations > Physical Settlement > Emission Rights Process

    Clearing Members

    All clearing members are listed at
    www.ecc.de > About ECC > Partners > Clearing Members

    Sales Power, Environmental Markets

    Christian Fleischer
    Head of Sales Environmentals

    +49 341 2156-240 christian.fleischer@eex.com

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