CME Launching RIN Futures May 13
CME Group said on Thursday that it plans to launch new futures contracts for Renewable Identification Numbers on May 13.
RINs, the credits used by refiners, blenders and importers to show compliance with the Renewable Fuel Standard, will include contracts for D4 biomass-based diesel, essentially biodiesel; D5, advanced biofuels such as sugar-based ethanol, cellulosic ethanol and biodiesel; and D6 renewable fuels, primarily starch-based ethanol.
"With the recent increase in volatility in RINs prices, we've seen strong interest from our customers and other market participants for cost-effective ways to manage their risk in this market," said Gary Morsches, managing director global energy, CME Group.
He said as the actively traded marketplace for RBOB gasoline and ultra-low sulfur diesel contracts, RINs futures contracts will "be a strong complement to our existing suite of products."
These contracts will be financially-settled based on Argus Media's prices for RINs.
These contracts will be available on the CME Globex electronic trading platform, for over-the-counter clearing through CME ClearPort and open outcry on the trading floor in New York, beginning with the May 2013 contract month.
CME exchanges offer a range of global benchmark products across all major asset classes, including futures and options for energy.
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