Clearing

GreenX contracts are listed for trading by GreenX and cleared through CME Clearing, the largest derivatives clearing house in the world. By clearing GreenX products through CME Clearing, customers receive the highest level of risk management as well as the lowest level of credit risk.

All environmental products benefit from CME Clearing comprehensive risk management tools, which include a transparent and robust multi-factor portfolio managing model, daily mark to market, membership standards, credit limits, and real-time monitoring of financial strength of each clearing firm.

Clearing environmental products protects the financial integrity of the markets by virtually eliminating credit risk. Leveraging a century worth of experience, CME Clearing monitors the financial wherewithal of all participants in the clearing process, and therefore protects all clearing members and their customers from the consequences of any default. The clearing system:

Provides the highest level of safety and the early detection of unsound financial practices on the part of any clearing member
Continually updates to reflect the most advanced risk management and financial surveillance techniques

Additional benefits of clearing environmental products with CME Clearing include:

Simplified legal documents - No need to sign enabling agreements with many counterparties as the clearinghouse serves as the central counterparty.
Multiple collateral options - A wide variety of accepted security deposit collateral, including cash, US Treasuries, gold and approved money market mutual funds.
Lower costs - Lower overall collateral requirements due to cross margining and netting of customer positions
Reduced exposure - The clearing house monitors and tracks potential market exposures and ensure sufficient resources are available to cover future obligations

For more information on CME Clearing, including information on risk management/CME SPAN, deliveries, systems and operations, audit, and clearing special types of trades, click here.