Xpansiv, a market infrastructure provider for the global energy transition, has announced partnerships with S&P Global Commodity Insights and CME Group to improve price discovery, liquidity, and risk management in the rapidly expanding Australian Carbon Credit Unit (ACCU) market. This collaboration marks a significant step forward for compliance carbon markets.
The partnership will see Xpansiv’s existing spot ACCU contracts, traded on its CBL platform, settle using a new CBL-Platts ACCU price assessment. Additionally, CME Group is set to launch a new CBL ACCU futures contract on 13 October, pending regulatory approval. This contract will provide market participants with enhanced risk management capabilities by settling to the underlying spot ACCU contracts traded on Xpansiv’s platform.
“The trifecta of a robust physical market, enhancements to Platts’ existing ACCU price assessments, and the creation of a hedging mechanism through a futures contract combine to provide the marketplace with a deeper and broader view of value,” said Brian Casey, Head of Markets Strategy & Partnerships at S&P Global Commodity Insights.
Since Xpansiv launched ACCU spot trading on its CBL platform in December, more than 3.5 million tons of ACCUs have traded through the platform. The CBL platform also facilitates trading of global voluntary carbon credits, Australian and North American renewable energy certificates (RECs), and other environmental commodities.
The new CBL ACCU futures contract will be listed on the New York Mercantile Exchange (NYMEX) and settle to the underlying spot ACCU contract traded on Xpansiv’s marketplace. Xpansiv will facilitate the delivery of futures positions through its post-trade infrastructure, Xpansiv Connect, which is integrated with 14 leading carbon and renewable energy registries, offering seamless post-trade operations for market participants.
Peter Keavey, Global Head of Energy and Environmental Products at CME Group, commented on the collaboration: “This is the latest in our suite of risk management tools as we respond to demand for solutions that allow clients to execute their carbon reduction strategies more effectively, whether they are on a compliance or voluntary basis.”
Ben Stuart, Chief Commercial Officer at Xpansiv, emphasized the importance of the collaboration: “Together we have set a new standard for reliable price signals and trading instruments in this important, evolving market.”
This collaboration is expected to provide robust pricing mechanisms and trading solutions for ACCU market participants, including major carbon emitters and financial institutions, supporting the continued growth of the carbon credit market in Australia.