Euroclear Bank Launches Solution For Carbon Trading

Euroclear Bank is to offer settlement and safekeeping services for European Union Allowance units (EUAs) and Certified Emission Rights (CERs). Effective in March 2008, Euroclear Bank clients will be able to settle spot contracts traded on the Climate Spot Exchange (CSX), OTC or elsewhere and hold the allowances in Euroclear Bank, which will offer custody services for these holdings, with its ClimateSettle product. Trade settlement via ClimateSettle will typically occur on a T+1, delivery-versus-payment basis, and will include multilateral netting. Settlement will be against euros only initially; other settlement currencies will be added in line with client needs.


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