Green Exchange (GreenX) has started trading of its California carbon allowance (CCA) futures contract. The contract, serving as a compliance and risk management tool for market participants operating within the California emissions trading scheme (ETS), is the only California ETS product traded on an exchange regulated by the Commodity Futures Trading Commission.

The first trade, cleared through CME ClearPort, was carried out between Vitol and Enserco. The deal was brokered by Evolution Markets and cleared by GreenX clearing firms Citigroup Global Markets and BNP Paribas Commodity Futures. The GreenX CCA contract’s key specifications include a required contract size of 1,000 tons CO2 equivalent and an expiration cycle for the December 2012, 2013 and 2014 contract months.

Click here for the release from Green Exchange.