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Chicago Climate Futures Exchange ™

Chicago Climate Futures Exchange ™. U.S. Sulfur Financial Instrument Futures and Nitrogen Financial Instrument Futures on CCFE. www.theccx.com. The Acid Rain Program was created by Title IV of the 1990 Clean Air Act Amendments and is administered by the EPA

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Chicago Climate Futures Exchange ™

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  1. Chicago Climate Futures Exchange™ U.S. Sulfur Financial Instrument Futures and Nitrogen Financial Instrument Futures on CCFE www.theccx.com

  2. The Acid Rain Program was created by Title IV of the 1990 Clean Air Act Amendments and is administered by the EPA Calls for a 10 million ton reduction in SO2 emissions from 1980 levels, primarily through a cap and trade program Effected Sources: Primarily Electric Generating Utilities Annual cap set at 8.95 million allowances Approximately 10 million allowances transfer annually (between unrelated entities), representing a cash market value over $5 billion Sulfur Dioxide (SO2) Market Foundation

  3. NOx Budget Trading Program was implemented in 2003 to address the formation of ground level ozone in the warm summer months (Ozone Season) Federally mandated cap and trade program, caps emissions at State level Currently 19 Eastern U.S. states + D.C. in participation Effected Sources: Electric Generating Utilities, Pulp & Paper Industry, Cement Manufacturing Industry, Oil & Gas Industry... 500 thousand allowances allocated annually Approximately 500 allowances transfer annually (between unrelated entities), representing a cash market value over $500 million Nitrogen Oxide (NOx) Market Foundation

  4. SO2 Emission Allowance Price History ($/ton)

  5. NOx SIP Call Emission Allowance Price History ($/ton)

  6. Chicago Climate Futures Exchange™ • Chicago Climate Futures Exchange (CCFE™) is a CFTC designated contract market - futures exchange - which offers standardized and cleared futures contracts on emission allowances and other environmental products • Clearing services - The Clearing Corporation • Market surveillance - National Futures Association • CCFE currently lists Sulfur Financial Instrument (SFI™) futures contracts on Environmental Protection Agency (EPA) Sulfur Dioxide (SO²) emission allowances and Nitrogen Financial Instrument (NFI™) futures contracts on EPA Ozone Season (OS) SIP Call Nitrogen Oxide (NOx) emission allowances

  7. CCFE SFI™ Key Features • Contract Size – 25 U.S. EPA SO2 Emission Allowances • Minimum Tick Size - $0.10 per allowance or $2.50 per contract • Underlying Contract Value $11,725 (03/12 Settlement $469/contract * 25 tons) • Current Margin Requirements • Prompt Month (Mar07) $1,475 per contract • Pre 2010 contract expiration $975 per contract • 2010 & later - $400 per contract • Spread Margin Credit – 80% • Trading Hours: 7:00 a.m. – 3:00 p.m. CST • Transaction Fees $2.00 per contract per side(Non-Member);$1.60member

  8. CCFE NFI™ Key Features • Contract Size – 5 U.S. EPA NOx SIP Call Emission Allowances • Minimum Tick Size - $1.00 per allowance or $5.00 per contract • Underlying Contract Value $5,250 • Current Margin Requirements • Expiration Month (Mar07) $825 per contract • Non-Expiration Month $550 per contract • Trading Hours: 7:00 a.m. – 3:00 p.m. CST • Transaction Fees $2.50 per contract per side(Non-Member);$2.00 member

  9. CCFE SFI Volume

  10. CCFE SFI Open Interest

  11. CCFE Clearing Members

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