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CCAs futures too illiquid for position publication

11 Mar 2014 14:48:24 | edcm

Fewer than 20 companies hold an open position on exchange-traded California carbon allowance (CCA) futures, a number to small for them to be included in the weekly publication of positions.

CCA futures traded on the InterContinental Exchange are under the jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC) – the government agency regulating the commodities futures and option markets.

The CFTC publishes a weekly bulletin that provide a breakdown for each Tuesday’s open interest markets in which 20 or more traders hold positions exceeding certain thresholds, such as electricity, cotton and rice.

But CCAs are not included in the so-called Commitments of Traders (COT) reports, T because the open interest – the total of all contracts entered into and not yet offset by delivery or expiry – and the number of participants in the CCAs futures markets fall short of the standards for inclusion in the report, a spokeswoman told ICIS.

“Such standards ensure not harming market participants through the disclosure of commercially sensitive information,” she said.

According to data from ICE, total open interest for all the contracts offered stood at 25m CCAs on Friday.

The spokeswoman added that the CFTC does not regulate the cash market underlying the futures market nor the forward OTC market as such. However, the commission does have authority to counter manipulation and pursue illegal activity, if it affects the futures markets, in the cash market. Silvia Molteni

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