CBL Markets, the leading spot exchange operator for environmental commodity markets, continues its expansion announcing the first trade of its spot US Renewable Energy Certificate (REC) contract which comes at the end of a record trading week in its spot emission markets.
The first contract was a Connecticut Class 1 RECs Vintage 2017 Spot Product in the New England Power Pool (NEPOOL) Market, traded at USD$20.
With US Renewable Portfolio Standards (RPS) demand expected to double from 2015 to 2030, the launch of spot US REC contracts by CBL is changing the landscape for market participants and brokers. These contracts will enable the market to electronically access RECs with straight-through processing, reduced transaction costs and significant reductions in counterparty risks.
“With REC demand increasing, the launch of CBL into US renewables adds further value to market participants who can spot trade energy and emission products side-by-side” said Nathan Rockliff, Managing Director (US) at CBL Markets.
CBL initially announced its plan to launch spot US RECs in January, following a partnership with APX, the leading provider of infrastructure solutions to North American renewable energy markets, to provide electronically cleared and same-day settled spot US RECs.
“By connecting the CBL exchange platform to APX’s infrastructure, participants and brokers can access spot REC products efficiently and cost-effectively, with enhanced price discovery and continuous trading contracts” adds Mr. Rockliff.
Following the successful launch of NEPOOL RECs, CBL plans to enable market participants to trade PJM RECs through its integrated electronic exchange platform.
The launch of NEPOOL RECs comes at the end of a record week in CBL’s North American spot emission markets, with 117,000 units transacted across 26 trades since July 31. The majority of these transactions have been for RGGI CO2 Allowances.
This announcement follows the appointment of Chris Ruck as Vice President last week, to drive sales and trading activity in North American compliance markets.
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