CME Group Introduces First-Ever Sustainable Derivatives Clearing Service

US derivatives giant CME Group recently announced that it will launch the derivatives industry's first-ever Sustainable Clearing service from September 27, 2021.

With the new service, market participants can track and report on how their hedging activities are advancing their sustainability goals. Clearing firms and clients will now be able to demonstrate support of ESG objectives and green hedging activities through clearing.

Sustainable derivatives encompass both the trading of products such as carbon offsets, battery metals and bioenergy as well as interest rate and foreign exchange futures hedging activity that is carried out to support a sustainable business.

"Sustainability continues to be an increasing priority for our global clients as they significantly expand both the risk management that they provide to green businesses and environmental projects," said Julie Winkler, Chief Commercial Officer, CME Group.

“This new framework for clearing sustainable derivatives will make it easier for our clients to measure the impact of their support for sustainable activities and can be part of the solution to encourage further growth in this key sector as the economy transitions to net-zero emissions,”Winkler added.

As Fazzaco reported earlier, CME Group's SOFR futures contracts reached a new record​, surpassing one million contracts of open interest on September 15.