WASHINGTON & CHICAGO , April 18, 2023
Nodal Exchange and IncubEx are pleased to announce a record volume day and week in the Washington Carbon Allowance (WCA) market as well as the first WCA options trade.
Nodal posted a record daily volume of 565 lots (equal to 565,000 WCAs) on April 13th and 815 WCA lots for the week representing 815,000 metric tons of greenhouse-gas emissions. Last week also marked a key milestone, as IVG Energy Ltd, a leading brokerage of environmental commodities and markets, brokered the first-ever WCA option trade on Nodal. The option trade was executed on WCA December-2023 $50.00 puts.
In collaboration with IncubEx, Nodal was the first to list WCA futures and WCA options contracts, which correspond with the Washington “Cap-and-Invest” program, the newest carbon market in North America. The program, launched on January 1, 2023, will gradually cover about 75% of the state’s CO2 emissions.
“We are thrilled to be the first to broker an options trade in the WCA market,” said Scott Cunningham, Environmental Broker at IVG Energy. “This is a major step forward for the industry and our firm and will help drive more investment into sustainable products and projects. As the environmental markets continue to grow and evolve, we are committed to providing innovative solutions that meet the needs of our customers. The trade also highlights IVG’s evolving position as a leader in the environmental markets, providing its customers with innovative solutions and opportunities to achieve their sustainability goals.”
“The first WCA options trade marks a key milestone in the development of the Washington carbon market and we thank IVG for brokering this transaction,” said Dan Scarbrough, President and COO at IncubEx. “This initial transaction illustrates the suite of futures and options risk management tools being utilized by a growing universe of participants on Nodal Exchange in this new market.”
“Nodal and IncubEx are at the forefront of today’s environmental markets in terms of product development, price transparency, risk management and capital efficiencies,” said Paul Cusenza, CEO of Nodal Exchange. “We’re proud of the growth we’ve seen across these markets and the support customers continue to show for new markets and innovative products.”
ABOUT IVG ENERGY
IVG Energy Ltd, a part of Sage Energy Holdings, is a provider of environmental commodities and markets, providing execution and trade solutions to help customers manage their environmental risks and achieve their sustainability goals. With a team of experienced professionals, IVG Energy Ltd is committed to driving the growth and development of the environmental markets. For more information, visit https://sageenergyholdings.com/.
Nodal Exchange is a derivatives exchange providing price, credit and liquidity risk management solutions to participants in the North American commodities markets. Nodal Exchange is a leader in innovation, having introduced the world’s largest sets of electric power and environmental futures and options contracts. As part of EEX Group, a group of companies serving international commodity markets, Nodal Exchange currently offers over 1,000 contracts on hundreds of unique locations, providing the most effective basis risk management available to market participants. In addition, Nodal Exchange offers natural gas contracts. All Nodal Exchange contracts are cleared by Nodal Clear which is a CFTC registered derivatives clearing organization. Nodal Exchange is a designated contract market regulated by the CFTC. For more information, please visit www.nodalexchange.com.
IncubEx is an incubator for exchange-traded products, services, and technology solutions. At its core, IncubEx is a product and business development firm. The company works in conjunction with its global exchange partner, European Energy Exchange (EEX), Nodal Exchange and other leading service providers and stakeholders to design and develop new financial products in global environmental, reinsurance, and related commodity markets. The company has a specific focus on innovation and continuous improvement of products and services, including technology, trading solutions, and operational efficiencies. The IncubEx team is led by former key Climate Exchange executives and is uniquely positioned to capture these opportunities with its partners. The company was founded in 2016 and currently has offices in Chicago and London. See more at www.theincubex.com.