LCH.Clearnet to Launch OTC Clearing Service for Carbon Credits

LCH.Clearnet will launch its over-the-counter (OTC) clearing service for the UK based spot market for carbon credits on 3 July 2009.

The new service will extend LCH.Clearnet’s emissions offering to include spot emissions allowances (EUAs) and certified emission reductions (CER) contracts with next day delivery and settlement, which will be undertaken by LCH.Clearnet using its holding account at the UK Emissions Trading Registry.

The initiative has been well received by the trading and broking community with members of the London Energy Brokers Association, including Cantor Co2e, GFI, ICAP, Spectron, TFS and Tullett Prebon expressing strong support.

Isabella Kurek-Smith, director of energy and freight, LCH.Clearnet, said: “The introduction of this valuable service underscores our dedication to improve operational efficiency within the OTC environment. We feel that this development will encourage greater participation within the emissions trading market as it offers the OTC broking community the unique advantages that streamlined centralised clearing brings.”


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