CFTC approves final guidance regarding the listing of voluntary carbon credit derivative contracts and brings first fraud action in the voluntary carbon credit market
The final guidance applies to designated contract markets, which are the Commodity Futures Trading Commission’s (“CFTC”) regulated derivative exchanges (DCMs), and outlines factors for DCMs to consider when addressing certain Core Principle requirements in the Commodity Exchange Act (CEA) an CFTC regulations that are relevant to the listing for trading of voluntary carbon credit derivative contracts. The guidance also outlines factors for consideration when addressing certain requirements under the CFTC’s Part 40 Regulations that relate to the submission of new derivative contracts, and contract amendments to the CFTC.
Related: In a first action for fraud in the voluntary carbon credit market, the CFTC charged a former CEO of carbon credit project developer…
