®

Chicago Climate Futures Exchange®

Trading Privilege Holders

© 2009 Chicago Climate Exchange®, Inc.

 What is a TPH?

A Tradingg Privilege
g Holder (TPH) is a
person or entity who owns trading
privileges on CCFE

© 2009 Chicago Climate Exchange®, Inc.

 CCFE

• A wholly owned subsidiary of the Chicago Climate NFA Market

Exchange (CCX) and a member of the Climate Surveillance
Exchange PLC (LSE: CLE.L) group of companies.

• Offers a suite of environmentally related products,

including standardized and cleared futures and
p
options on emission allowances,, equity
q y index futures CFTC
Regulated
and insurance based derivatives.

Climate Exchange PLC companies own and operate the world’s

leading exchanges specializing in environmental asset classes,
including emissions, weather and insurance-related products.
Cleared via
The Clearing
Corp

© 2009 Chicago Climate Exchange®, Inc.

CCFE Products
Emissions Products
• Sulfur Financial Instrument® (SFI ®) Futures and Options
• Nitrogen Financial Instrument™ - Ozone Season (NFI™ -OS) Futures
• Nitrogen Financial Instrument™ - CAIR Annual (NFI™ -A) Futures and Options
• Regional Greenhouse Gas Initiative (RGGI) Futures and Options
• Carbon Financial Instrument ® (CFI ®) Futures and Options
• Carbon Financial Instrument ® ( CFI-EA) Futures
• U S Carbon Financial Instrument (CFI
U.S. (CFI-US
US®) ) Futures & Options
• U.S. Carbon Financial Instrument ( CFI-US—O )Futures
• California Climate Action Reserve Tons (CCAR-CRT®) Futures and Options
Equity-Index Products
• ECO-Clean Energy Index (ECO) Futures
• Dow Jones Sustainability World Index (DJSI-W) Futures *
IFEX™ Insurance
• U.S. Tropical Wind ($10,$15,$20,$25, $30, $40 ,$50, $60,$75, and $100 Billion)
• Florida Tropical Wind ($10,$15,$20,$25, $30, $40 ,$50, $60,$75, and $100 Billion)
• Gulf Coast Tropical Wind ($10,$15,$20,$25, $30, $40 ,$50, $60,$75, and $100 Billion)
• Northeast Tropical Wind ($10,$15,$20,$25, $30, $40 ,$50, $60,$75, and $100 Billion)
• Eastern Seaboard Tropical Wind ($10,$15,$20,$25, $30, $40 ,$50, $60,$75, and $100 Billion)
Renewable Energy Products
• New Jersey Renewable Energy Certificate (REC-NJ) Futures
• Connecticut Renewable Energy Certificate (REC-CT) Futures
• Massachusetts Renewable Energy Certificate (REC-MA) Futures
• Voluntary Renewable Energy Certificate (REC-V) Futures

"Dow Jones, World Sustainability IndexSM" are service marks of Dow Jones & Company, Inc. Dow Jones has no relationship to the Chicago Climate Futures Exchange, other than the
licensing of the Dow Jones World Sustainability Index and its service marks for use in connection with the Dow Jones World Sustainability Index Futures products.

© 2009 Chicago Climate Exchange®, Inc.

 TPH Rights & Benefits

• Transact directly in the CCFE markets

• Receive reduced transaction fees (20%)

• Become a Clearing Member

• Invest in a limited commodity

• Gain access to CCFE several incentive programs across a wide

variety
i off products
d

© 2009 Chicago Climate Exchange®, Inc.

Limited Availability
• Of 425 total TPHs, less than 25 are available
• Current Price of $150,000 per TPH
• After these final TPHs are sold, ALL TPHs will become transferable
• CCFE will initiate markets for both selling and leasing TPHs within 90 days
of the final TPH being sold
• Once a secondary market is initiated, a minimum of two TPHs will be
required to become a clearing member
• Discounts are available for multiple TPH purchases as follows:
• 10% discount for 2nd TPH purchase
• 15% for 3rd-5th
• 20% for 6th-10th
• 25% for any further purchases

© 2009 Chicago Climate Exchange®, Inc.

 CCFE Growth in Numbers

• Volume Growth:
» 2005 - 171 contracts
» 2006 – 28,924
, contracts
» 2007 – 283,758 contracts
» 2008 – 484,320 contracts
» 2009 – 1,372,579
1 372 579 contracts
• Open Interest Growth:
» 2007 Start – 3,822 contracts
» 2008 Start – 43,880 contracts
» 2009 Start – 61,420 contracts
» 2/4/2010–
/ / 103,4628 contracts

*As of 2/4/2010

© 2009 Chicago Climate Exchange®, Inc.

 CCFE Open Interest Snapshot *as of 02/3/10

• US EPA Clean Air Markets

– SO2 Futures and Options – 47,896 contracts (1,197,400 allowances)
– NOx Futures and Options – 12,320 contracts (12,320 allowances)

• Carbon
C b P Products
d t
– RGGI Futures and Options – 26,850 contracts (26.9M allowances)
– CFI Futures and Options – 6,807 contracts (6.8M allowances)
– CFI-US Futures and Options – 1,901 contracts (1.9M allowances)
– CRT Futures and Options – 560 contracts (560,000 allowances)
• Renewable Energy Certificates “RECs”
– NJ Class I Futures – 2,310 contracts (231,000 MWh)
– CT Class I Futures – 500 contracts (50,000 MWh)
– MA Class 1 Futures – 80 contracts (8,000 MWh)

© 2009 Chicago Climate Exchange®, Inc.

JP Morgan Projects CCFE to Trade Nearly 1mm
Contracts/Day in a Mature Carbon Market

© 2009 Chicago Climate Exchange®, Inc.

Recognition

“I’m estimating
“I’ ti ti g carbon
b markets
k t couldld be
b worthth $2 trillion
t illi ini ttransaction
ti
value – money changing hands – within five years of trading (starting).
That would make it the largest physically traded commodity in the US,
p
surpassingg even oil.”
Bart Chilton, a Commodity Futures Trading Commission (CFTC) commissioner,
who's also chairman of its energy and environmental markets advisory
committee

“To deal directly with climate change, something we failed to do in the

last energy bill, we should use a market-based strategy that gradually
reduces harmful emissions in the most economical way…Right
way Right here in
Chicago, the Chicago Climate Exchange is already running a legally
binding greenhouse gas trading system.”
President (then Senator, D D-IL)
IL) Barack Obama, April 3, 2006

© 2009 Chicago Climate Exchange®, Inc.

CCFE Clearing Members

© 2009 Chicago Climate Exchange®, Inc.