First RIN Futures Contract Trades
STREATOR, Ill. (DTN) -- CME Group on Thursday announced in a news release the first Ethanol Renewable Identification Number futures contract was cleared Thursday over CME ClearPort. The trade was brokered by StarFuels Inc.
RINs are the credits used by refiners, blenders and importers to show compliance with the annual volume mandates under the Renewable Fuel Standard. CME said RINs futures provide a useful hedge for the price risk associated with the RFS.
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D6 renewable fuel RINs are primarily for corn-based ethanol. Other RIN contracts are available for biomass-based diesel D4, and advanced biofuel D5.
RINs futures were launched on the CME-owned New York Mercantile Exchange on Monday, May 13.
CME said the new RINs contracts come at a time when its ethanol futures and options contracts are trading at record levels. The ethanol complex has averaged between 5,000 and 6,000 contracts a day in 2013, which is up over 25% since 2012.
"As the most actively traded market for North American gasoline, ultra-low-sulfur diesel and ethanol futures contracts, our new RINs products make a good complement to our existing suite of services," said Gary Morsches, Managing Director Global Energy at CME Group.
CME Group exchanges offer a range of global benchmark products across all major asset classes, including futures and options based for energy and agricultural commodities.
(BM/AG)
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