The Autorité des marches financiers (AMF) has approved the applications filed by the Montreal Exchange (MX) and the Canadian Derivatives Clearing Corp. (CDCC) to amend their respective rules in preparation for the creation of Montreal Climate Exchange (MCeX) environmental products.

With these decisions, the MX will be able to launch trading of futures contracts in carbon dioxide equivalent (CO2e) units. The features of these contracts were developed following the release of the federal government’s regulatory framework, which sets annual CO2 emissions reduction targets for pollution emitters in certain industrial sectors.

The regulatory approval for amendments to the rules of MX and the CDCC contains terms and conditions that will enable the AMF to oversee and monitor changes in the new market and ensure that market participants are protected.

The applications filed by MX and the CDCC were published for comment in the AMF Bulletin of October 5, 2007.

“This decision is much appreciated since it enables the MX team to stay on the critical path leading to the launch of trading in carbon futures at the end of May,” said Luc Bertrand, MX president and CEO.

The target date for the launch of trading in MCeX futures contracts is May 30, as previously announced. The market rules commit MX to operate a transparent, secure and liquid market that earns the confidence of traders, investors and market participants. Futures contracts based on Canada
CO2e units will be traded on the MX electronic trading platform, SOLA. MX will settle and guarantee contracts through its clearing house, the CDCC.