Specifications
Climate Action Reserve Option
| Contract | Climate Action Reserve Option |
|---|---|
| Symbol | Globex: CO ClearPort: CO |
| Underlying | One Climate Action Reserve Non-Vintage Futures contract |
| Trading unit | CLIMATE RESERVE TONNES™ (CRT™). Climate Action Reserve defines a CLIMATE RESERVE TONNE™ as being equal to an emission reduction that is equivalent to one metric tonne of verified greenhouse gas emission reductions. |
| Quotation | US Dollars ($) and cents (¢) per CRT™ |
| Minimum tick | $0.01 per CRT™ (i.e. $10.00 per lot) |
| Strike price intervals | Ten strike prices in increments of $.50 per CRT above and below the at-the-money strike price. Strike price boundaries are adjusted according to futures price movements. |
| Options style and premium | European style. Premiums paid at the time of the transaction. |
| Contract listings | Six (6) consecutive quarterly and seven (7) December contracts |
| Last trading day | A Climate Action Reserve Option contract listed on the Exchange shall expire at the close of trading three business days prior to the expiration of the underlying Climate Action Reserve Futures contract. |
| Venues | CME Globex; CME ClearPort |
| Trading hours |
CME Globex: Sunday – Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT) CME ClearPort: Sunday – Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT) |
| Delivery | Climate Action Reserve Options Contracts will be exercised into Climate Action Reserve Non-Vintage Futures Contracts and are of European-style exercise, such that at expiry, automatic exercise will occur of options which are one or more ticks in-the-money. (At-the-money and out-of-the-money options will lapse). |
| Fee | $2.50 per contract |
| Clearing | CME Clearing for NYMEX CME ClearPort (clearing for off-exchange EFS, EFP contracts only) |
| Margin | CME calculates performance bond (margin) requirements on options using a system developed and implemented by CME called Standard Portfolio Analysis of Risk™ (CME SPAN®). Information on SPAN is available on http://www.cmegroup.com/clearing/risk-management/span-overview.html. |
| Position Accountability Level | http://www.cmegroup.com/rulebook/NYMEX/1/5.pdf#page=44 |
| NYMEX Rulebook | http://www.cmegroup.com/rulebook/NYMEX/9/917.pdf |
Disclaimer: CLIMATE RESERVE TONNES™ and CRT™ are certification marks of the Climate Action Reserve, and Climate Action Reserve is not affiliated with, and has not sponsored, endorsed or approved the Climate Action Reserve Futures or Climate Action Reserve Option products. (see current website for details)