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V2022 listing delayed on ICE till after February auction due to federal shutdown

February 6, 2019 by Lonava Tahreen

CaliforniaCarbon.info, 6 February 2019: With only a couple weeks to go for the Advance Auction wherein V2022s would be offered for the first time in the WCI cap-and-trade program, compliance entities are currently left without options to take forward positions on the vintage through an exchange.

The InterContinental Exchange (ICE) has been the exchange of choice to trade CCAs, however, approvals to list the V2022s on the exchange was delayed as the Commodities Future Trading Commission remained closed alongside other federal agencies in the US from December to most of January. V2022s will be available on ICE beginning March 4, 2019, conveyed Mike Kierstead, Manager, Environment and Coal Markets at the InterContinental Exchange (ICE).

According to other market sources, Nodal Exchange has reached out and informed that the exchange would have V2022s on offer before the bid guarantees are finalized on 9th February 2019.

The Advance Auction is scheduled to take place on February 20, 2019 from 10:00 AM Pacific Time /1:00 PM Eastern Time until 1:00 PM PT / 4:00 PM ET.

A total of 9,038,000 V2022s will be offered in the February auction. The allowances offered in the current auction stands at 80,847,404 comprises of V2016, V2017 and V2019. Any lack of contracts to position the incoming volume onto the secondary market might deter buyers at the auction. However, CaliforniaCarbon.info’s long term forecast clearly suggests that re-procuring unsold allowances at a later auction would come at a higher cost than present.

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Edited on 8 February 2019

Analyst contact: 

Rahul Rana (rahul@californiacarbon.info)

Lonava Tahreen (lonava.tahreen@californiacarbon.info)

 

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