Derivatives-heavy market operator CME Group introduces a sustainable clearing service. So what is that?

The new CME service is meant to make it simple for firms to track their sustainable derivatives positions. “Our solution ensures that all sustainable trades continue to benefit from our established risk management approach, including full margin offsets where applicable, which creates efficiencies for clients and end users.” Sunil Cutinho, President of CME Clearing says in his company’s press release.

Sustainable derivatives gain ground as the trading business is faced with ESG (environmental, social and governance) responsibility. According to CME, this is seen in the investment choices – products such as carbon offsets, bioenergy and battery metals – as well as in how interest rate and foreign exchange futures hedging activities act to support sustainable businesses.

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The CME Sustainable Clearing service launches Monday, 27 September 2021.