DELIVERY PROCEDURES

PART N2: ICE FUTURES EUROPE DELIVERABLE CARBON CREDIT CONTRACTS 

(DELIVERY VIA CENTRAL COUNTERPARTY CLEARING HOUSE) ...................................................... 141

1. Applicability and Definitions............................................................................................................ 141

2. Delivery Specification ...................................................................................................................... 141

3. Liability ............................................................................................................................................ 142

4. Delivery Contract Security and Contract Value................................................................................ 143

5. Delivery Timetable and Obligations................................................................................................. 143

6. Delivery timetable for ICE Deliverable Carbon Credit Contract...................................................... 143

7. Alternative Delivery Procedure (“ADP”) ......................................................................................... 145
PART N2: ICE FUTURES EUROPE DELIVERABLE CARBON CREDIT CONTRACTS 

(DELIVERY VIA CENTRAL COUNTERPARTY CLEARING HOUSE

PART N2: ICE Futures EUROPE Deliverable Carbon Credit Contracts (Delivery via CENTRAL 

COUNTERPARTY CLEARING HOUSE)

1. Applicability and Definitions

1.1 This Part N2 applies to all ICE Futures Europe deliverable carbon credit contracts for which:

(a) physical delivery is specified as being ‘Applicable’ in the relevant Contract Terms;

(b) physical delivery will take place following the expiry date; and

(c) the Clearing House has announced by Circular that these Delivery Procedures apply to the 

specific ICE Futures Europe deliverable carbon credit contracts.

Such ICE Futures Europe deliverable carbon credits contracts are referred to in this part as “ICE 

Futures Europe Deliverable Carbon Credit Contracts”.

1.2 The following additional definitions apply to this part of the Delivery Procedures:

(a) “Carbon Credit” means any and all transferrable or assignable interests (whether being in 

property, equity or contract or otherwise) in an instrument, certificate, permit, asset, security, 

right, contract or allowance that is designated as a deliverable instrument for an ICE 

Deliverable Carbon Credit Contract in the relevant Contract Terms.

(b) “Central Time or CT” means the standard time in a zone that includes the central states of 

the US and parts of central Canada.

(c) “Delivery Period” means the period during which delivery is to take place as further defined 

in the Contract Terms;

(d) “London Prevailing time or LPT” means Greenwich Mean Time or British Summer Time.

(e) “Registry” means a registry, custodian, depository or other system used for physical delivery 

of Carbon Credits pursuant to an ICE Futures Europe Deliverable Carbon Credit Contract that 

is approved by the Clearing House for the purpose of physical delivery for an ICE Futures 

Europe Deliverable Carbon Credit Contract Set in question. The Registry for a particular ICE 

Futures Europe Deliverable Carbon Credit Contract Set may be specified in the Contract 

Terms.

(f) “Registry Account” means an account to hold Carbon Credits at the relevant Registry. 

References to “Registry Account of the Clearing House” in these Delivery Procedures, shall 

mean a Registry Account in the name of the Clearing House.

(g) “Registry Operator” means the operator of a Registry.

2. DELIVERY SPECIFICATION

2.1 Delivery

Deliveries under ICE Futures Europe Deliverable Carbon Credit Contracts are effected upon: 

(a) in the case of the Seller effecting delivery, (i) the completion of the transfer; and (ii) 

acceptance of the relevant Carbon Credits, from the relevant Registry Account of the Seller, 

into the relevant Registry Account of the Clearing House; and

(b) in the case of the Buyer taking delivery, the completion of the transfer of the relevant Carbon 

Credits, from the relevant Registry Account of the Clearing House to the relevant Registry 
PART N2: ICE FUTURES EUROPE DELIVERABLE CARBON CREDIT CONTRACTS 

(DELIVERY VIA CENTRAL COUNTERPARTY CLEARING HOUSE

Account of the Buyer. For the purposes of this provision and notwithstanding the Registry 

practice, there shall be no prerequisite for the Buyer to accept the Carbon Credits in order for

deliveries to be considered effected. 

2.2 This takes place during the Delivery Period for the relevant ICE Futures Europe Deliverable Carbon 

Credit Contracts in accordance with the relevant Contract Terms. Neither delivery by the Seller nor 

receipt of the delivery by the Buyer requires performance by the other to occur simultaneously. Each of 

the Buyer and Seller shall deal directly with the Clearing House.

2.3 Carbon Credits

The Carbon Credits to be delivered shall conform to the specification described in the ICE Deliverable 

Carbon Credit Contract and the specifications of the Registry to and from which delivery may be made 

under the relevant Contract. 

Notwithstanding provision 2.1(a) above, in instances where the Seller effected the transfer of carbon 

credits which are not in accordance with the relevant ICE Deliverable Carbon Credit Contract, the 

Clearing House reserves the right to reject such transfer and, if applicable, return the carbon credits in 

question. The Seller will remain under an obligation to deliver Carbon Credits of the specified quantity 

in accordance with the ICE Deliverable Carbon Credit Contract by the timelines specified below. 

2.4 Quantity

Quantities are as required under the relevant Contract Terms.

2.5 Price

The price at which the Contract is delivered is the relevant Exchange Delivery Settlement Price (EDSP) 

for the Contract Set on expiry.

2.6 Cessation of Trading

Contracts cease trading at 17:00 CT on the last trading day, as defined in the Contract Terms.

3. LIABILITY

3.1 The provisions of this paragraph 3 are without prejudice to the generality of, and subject to, the 

provisions of the Rules relating to liability and apply in addition to the general requirements of these 

Delivery Procedures.

3.2 The Clearing House is not responsible for, and shall have no liability whatsoever as a result of, the 

performance or non-performance of, or any delay or error in performance by, any Registry or Registry 

Operator. Neither the Buyer nor the Seller shall have any claim against the Clearing House for any 

loss, cost, damage or expense incurred or suffered as a result of the condition or operation of any 

Registry or the performance or non-performance of any Registry Operator. This provision is without 

prejudice to the Clearing House’s liability under Contracts.

3.3 The Clearing House does not make any representation regarding the authenticity, validity or accuracy 

of any delivery tender notice, description of a Registry, market tracking system or any other Registry 

instructions, confirmation of transfer or any other notice, document, file, record or instrument used or 

delivered pursuant to the Contract Terms or pursuant to the procedures of any Registry.

3.4 The Clearing House is not responsible for, and shall have no liability whatsoever as a result of, the 

compliance or lack of compliance of any Seller or Buyer or their respective Transferors or Transferees 

with any rules of the relevant Registry or any laws applicable to it. 
PART N2: ICE FUTURES EUROPE DELIVERABLE CARBON CREDIT CONTRACTS 

(DELIVERY VIA CENTRAL COUNTERPARTY CLEARING HOUSE

3.5 The Clearing House is not responsible for and shall have no liability whatsoever as a result of, any 

errors in the Registry Account details entered into the relevant Registry systems or provided to the 

Clearing House by a Seller, Transferor, Buyer or Transferee in respect of a delivery. 

3.6 The Clearing House is not responsible for and shall have no liability whatsoever as a result of, the 

closure of any Registry Account(s). 

3.7 The Clearing House is not responsible for and shall have no liability whatsoever as a result of, 

complying with the contractual obligations owed to the Registry in respect of any Clearing House 

Registry Account(s). 

4. DELIVERY CONTRACT SECURITY AND CONTRACT VALUE

4.1 At end-of-day on the LTD+1, the Clearing House will call for full contract value from the Buyer, such 

amount to be paid in accordance with the Finance Procedures.

4.2 At end-of-day on LTD+1, the Clearing House will call for Delivery Margin from the Seller, such 

amount to be paid in accordance with the Finance Procedures. The Clearing House will retain the 

Seller’s Security until such time as the full contract value is released to the Seller under the table in 

paragraph 5.

5. DELIVERY TIMETABLE AND OBLIGATIONS

Delivery under an ICE Futures Europe Deliverable Carbon Credit Contract is based on Open Contract 

Positions after expiration of the relevant Contract Set. Delivery is a three Business Day process 

consisting of three consecutive days which must be Business Days. However, payments may take place 

after the end of the Delivery Day, as provided in the table below and the Finance Procedures.

5.1 Use of relevant Registry

(a) Clearing Members must have or ensure that their Transferors / Transferees have established 

the appropriate Registry Accounts at the relevant Registry for the ICE Futures Europe 

Deliverable Carbon Credit Contract(s) in question and provide any necessary instructions or 

confirmations to the Registry.

(b) Clearing Members making or taking delivery of ICE Futures Europe Deliverable Carbon 

Credit Contracts on their house account must have established Registry Accounts in the 

relevant Registry for the ICE Futures Europe Deliverable Carbon Credit Contract in question.

(c) It is the responsibility of the Clearing Members to comply with the rules, regulations and laws 

applicable to the Registry and to ensure their respective Transferor(s) / Transferee(s) also

comply with the rules, regulations and laws applicable to the Registry.

(d) It is the responsibility of the Clearing Members to provide correct Registry Account details at 

all times and to ensure their respective Transferor(s) / Transferee(s) also provide correct 

Registry account details at all times.

6. DELIVERY TIMETABLE FOR ICE DELIVERABLE CARBON CREDIT CONTRACT

Last Trading Day (LTD)

At 17:00CT Trading ceases.
PART N2: ICE FUTURES EUROPE DELIVERABLE CARBON CREDIT CONTRACTS 

(DELIVERY VIA CENTRAL COUNTERPARTY CLEARING HOUSE

Cessation of Trading

By 17:00CT Clearing Members with Open Contract Positions at this time are 

obliged to make or take delivery.

By 17:30CT EFPs and EFSs may be posted up to 30 minutes following the 

cessation of trading.

Confirmation of Delivery 

Position/Expiry

LTD+1 Business Day

By 10:00 

CT

Clearing Members must confirm their final delivery positions by 

submitting their delivery intentions via ECS (or any successor 

system). Clearing Members may only assign one client Registry 

Account to each individual client position. In instances where a 

client has multiple Registry Accounts only one can be used per 

delivery / receipt obligation.

By 10:00 

CT

A Clearing Member who is nominating a Transferor or Transferee 

in respect of a Contract must ensure that the Clearing House has in 

its possession a signed ICE Futures Europe Deliverable Carbon 

Credit Contract: Transferor Form or ICE Futures Europe 

Deliverable Carbon Credit Contract: Transferee Form (as 

applicable) for each nominated Transferor or Transferee. This 

Transferor / Transferee form must be signed by an authorised 

signatory of the Transferor / Transferee.

After 

10:00 CT

Clearing Members MPFE report (futures expiry report) available

and delivery confirmation report sent to Clearing Members via 

email.

LTD+2 Business Days

Payment by the Buyer

By 9:00 

LPT

Buyer pays full contract value to the Clearing House.

Payment of Delivery 

Margin

By 9:00 

LPT

Seller pays Delivery Margin to the Clearing House

Seller’s Delivery to 

Clearing House

By 

12:00 CT 

The Seller must ensure that appropriate Carbon Credits (delivery 

of which would satisfy its Delivery Obligations) have been 

delivered to the designated Clearing House Registry Account.
PART N2: ICE FUTURES EUROPE DELIVERABLE CARBON CREDIT CONTRACTS 

(DELIVERY VIA CENTRAL COUNTERPARTY CLEARING HOUSE

Delivery Day - LTD + 3 Business Days

Payment to Seller By 

09:00 LPT

Seller receives full contract value against the Carbon Credits 

received by the Clearing House on LTD +2.

Seller’s Delivery Margin is returned against the Carbon Credits 

received by the Clearing House.

Clearing House Delivery 

to Buyers

By 13:00 

CT

The Clearing House will have delivered the appropriate Carbon 

Credits to the Buyer’s Registry Account / nominated Transferee 

Registry Account.

7. ALTERNATIVE DELIVERY PROCEDURE (“ADP”)

7.1 In the event of a transfer failure relating to an ICE Futures Europe Deliverable Carbon Credit Contract, 

the relevant Clearing Member may seek agreement of the Clearing House to make or take delivery 

beyond the point of failure in a manner and on terms other than those required pursuant to the ICE 

Futures Europe Rules. The purpose of the ADP is to afford flexibility to Clearing Members in 

circumstances where it is envisaged that delivery will be possible but not within the prescribed 

timetable. Failure to deliver in accordance with ICE Futures Europe Rules and this Part N2 may 

nonetheless attract disciplinary action or a fine by ICE Futures Europe and/or the Clearing House 

notwithstanding any subsequent delivery in accordance with an ADP Agreement.

7.2 Each Clearing Member that enters into an ADP Agreement shall, pursuant to these Delivery 

Procedures, and without need for any further action on the part of the relevant Clearing Member or the 

Clearing House, be deemed to have agreed to indemnify the Clearing House in respect of all and any of 

the Clearing House’s costs, losses, charges and expenses incurred by the Clearing House in connection 

with the ADP, including, without limitation, any costs, losses, charges and expenses incurred as a result 

of a failure on the part of the Clearing Member to meet its obligations under an ADP Agreement and 

the Clearing House’s staff, operational and legal costs associated with the ADP.

7.3 In the event that a Clearing Member and the Clearing House enter into an ADP Agreement, the existing 

Contract will be dealt with in the manner specified in the ADP. If the existing Contract is to be 

liquidated under the ADP Agreement, this will be done on the basis of the Exchange Delivery 

Settlement Price. Delivery under an ADP Agreement will be subject to the requirements (including the 

indemnity) set out in this paragraph 7, the same Contract Terms as the Contract(s) replaced as a result 

of the ADP Agreement (subject to such new terms as are agreed in relation to any matter, which may 

(without limitation) include new terms in respect of price, delivery times or Deliverable), any directions 

the Clearing House may in its discretion issue and the terms of the ADP Agreement. A new Contract 

or Contracts shall arise pursuant to Part 4 of the Rules as a result of EADP being agreed.

7.4 Where ADP is agreed, as from the time that the Clearing Members’ accounts are amended, as described 

in the ADP in the books and records of the Clearing House, the affected Clearing Members and the 

Clearing House shall all automatically and immediately be released from all their rights, liabilities and 

obligations in respect of the Contract or Contracts that gave rise to the ADP and such rights, liabilities 

and obligations shall be substituted for such amended obligations as are detailed in the ADP 

Agreement.

1.17.5 In the event that the Clearing Member and Clearing House are unable to enter into an ADP Agreement 

or effect delivery under ADP within a reasonable period of time after the Failed Delivery, the Clearing 

House may refer the matter to ICE Futures Europe and will consider in its discretion what other 

reasonable next steps it should take (if any). For example, and without limitation, the Clearing House 
PART N2: ICE FUTURES EUROPE DELIVERABLE CARBON CREDIT CONTRACTS 

(DELIVERY VIA CENTRAL COUNTERPARTY CLEARING HOUSE

may decide to Invoice Back affected Contracts, begin disciplinary proceedings, levy a fine, call 

additional Margin and/or declare an Event of Default.