New RIN Futures Launch

By DTN Staff

OAKHURST, N.J. (DTN) -- Nodal Exchange, a derivatives exchange, and IncubEx on Friday, Oct. 9, announced the upcoming launch of eight new Renewable Identification Number futures and options contracts. Pending regulatory review, Nodal will launch the first-ever physically delivered futures contracts on D3, D4, D5 and D6 RIN markets on Nov. 17.

The release indicates complementary RIN options contracts will also be listed that day for the four futures contracts.

The new contracts mark the latest expansion of the renewable fuels products group on Nodal, which offers more than 75 futures and options contracts on 46 distinct environmental markets in North America.

"The RIN market is the largest renewable fuels credit market and has proven effective in its goal to lower carbon emissions across the transportation sector," said Nathan Clark, managing director at IncubEx. "These new products offer RIN participants a cost-efficient way to hedge price risk in the market."

RINs are traded nationwide under the Environmental Protection Agency's Renewable Fuel Standard, which allows renewable fuel producers, market participants and obligated parties to generate, buy and sell RINs. RINs are essentially identification numbers or tickets that are attached to each gallon of biofuel blended into transportation fuels in the United States.

RINs complement other renewable fuels contracts launched by IncubEx and Nodal: California Low Carbon Fuel Standard and Oregon Clean Fuels Program futures and options. The new RINs contracts cover the most actively traded RIN markets in the United States. The RIN contracts are aligned with their designated fuel types: D3 RINs for cellulosic biofuels, D4 RINs for biomass-based diesel, D5 RINs for advanced biofuels such as sugarcane ethanol and D6 RINs for renewable fuel such as corn ethanol. In 2019, nearly 20 billion RIN credits were generated across the four RIN markets.

"The new RIN contracts nicely complement the first-ever physically delivered renewable fuels contracts listed on the California and Oregon markets," said Paul Cusenza, chairman and CEO of Nodal Exchange. "We are happy to be able to support this market as we continue to grow the world's largest suite of environmental products."

Product and business development firm IncubEx works in conjunction with its global exchange partner, European Energy Exchange, Nodal Exchange and other leading service providers and stakeholders to design and develop new financial products in global environmental, reinsurance, and related commodity markets.

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