NODAL EXCHANGE CONTRACT SPECIFICATION

Washington Carbon Allowance Specific Vintage 2027 Future

ITEM SPECIFICATION

Contract Description

Physically delivered greenhouse gas emissions allowances where each is an 

allowance issued by Washington State or a linked program (“Washington Carbon 

Allowance”) representing one metric ton of CO2 equivalent under Climate 

Commitment Act and its associated regulations, rules and amendments, all together 

known as the “Washington Cap and Invest Program”.

Contract Code SVK

Settlement Method Physical Delivery

Hours of Trading As defined at http://www.nodalexchange.com

Unit of Trading 1 lot

Lot Size 1,000 Washington Carbon Allowances

Currency US Dollars

Minimum Tick $0.01 per Washington Carbon Allowance

Settlement Price Precision $0.01 per Washington Carbon Allowance

Last Trading Day Three Business Days prior to the last Business Day of the delivery month

Delivery Day Three Business Days after the Last Trading Day (Last Business Day of the delivery 

month)

Contract Series

Monthly contracts for the current year beginning with July 2024, plus an additional 3 

years. The exchange may list any other calendar month contract off the standard 

listing for up to 10 years.

Deliverable Product

The deliverable instruments are Washington Carbon Allowances equal to the 

contract size delivered through the Washington Compliance Instrument Tracking 

System Services (WCITSS). Washington Carbon Allowances acceptable for delivery 

are those issued as an authorization to emit up to one metric ton of CO2 or CO2 

equivalent in the Washington Cap and Invest Program having a vintage 

corresponding to the specified vintage year only.

Registry Washington Compliance Instrument Tracking System Services (WCITSS)

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded contracts, as appropriate

Final Settlement Price The Daily Settlement Price on the Last Trading Day

Delivery

On the Last Trading Day, the Exchange will provide the Clearing House with 

information identifying the Participants with delivery obligations for the purpose of 

issuing Tender and invoice notices in accordance with Section IX (Physical Delivery 

and Settlement) of the Nodal Clear Rulebook.

Final Settlement (Payment) 

Date

Three or four Business Days after the Last Trading Day on the successful delivery of 

the underlying instruments (if the delivery confirmation is available by 11:30am on 

the third Business Day after the Last Trading Day, the payment will be made on the 

same day during the Midday Margin Cycle; if it is available after 11:30am, the 

payment will be made on the next Margin Cycle which will be the next Business Day)

Position Limit https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF
NODAL EXCHANGE CONTRACT SPECIFICATION

Washington Carbon Allowance Vintage 2027 Future

ITEM SPECIFICATION

Contract Description

Physically delivered greenhouse gas emissions allowances where each is an 

allowance issued by Washington State or a linked program (“Washington Carbon 

Allowance”) representing one metric ton of CO2 equivalent under Climate 

Commitment Act and its associated regulations, rules and amendments, all together 

known as the “Washington Cap and Invest Program”.

Contract Code WBK

Settlement Method Physical Delivery

Hours of Trading As defined at http://www.nodalexchange.com

Unit of Trading 1 lot

Lot Size 1,000 Washington Carbon Allowances

Currency US Dollars

Minimum Tick $0.01 per Washington Carbon Allowance

Settlement Price Precision $0.01 per Washington Carbon Allowance

Last Trading Day Three Business Days prior to the last Business Day of the delivery month

Delivery Day Three Business Days after the Last Trading Day (Last Business Day of the delivery 

month)

Contract Series

Monthly contracts for current year, plus an additional 3 years. The exchange may list 

any other calendar month contract set off the standard listing cycle for up to 10 

years.

Deliverable Product

The deliverable instruments are Washington Carbon Allowances equal to the 

contract size delivered through the Washington Compliance Instrument Tracking 

System Services (WCITSS). Washington Carbon Allowances acceptable for delivery 

are those issued as an authorization to emit up to one metric ton of CO2 or CO2 

equivalent in the Washington Cap and Invest Program having a vintage 

corresponding to the specified vintage year and allowances having a vintage of any 

year prior to the specified vintage-year. 

If the specified vintage year allowances do not exist in the WCITSS at contract expiry, 

allowances of any prior vintage year or allowances of the earliest vintage year 

available in the WCITSS shall be delivered.

Registry Washington Compliance Instrument Tracking System Services (WCITSS)

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded contracts, as appropriate

Final Settlement Price The Daily Settlement Price on the Last Trading Day

Delivery

On the Last Trading Day, the Exchange will provide the Clearing House with 

information identifying the Participants with delivery obligations for the purpose of 

issuing Tender and invoice notices in accordance with Section IX (Physical Delivery 

and Settlement) of the Nodal Clear Rulebook.

Final Settlement (Payment) 

Date

Three or four Business Days after the Last Trading Day on the successful delivery of 

the underlying instruments (if the delivery confirmation is available by 11:30am on 

the third Business Day after the Last Trading Day, the payment will be made on the 
NODAL EXCHANGE CONTRACT SPECIFICATION

ITEM SPECIFICATION

same day during the Midday Margin Cycle; if it is available after 11:30am, the 

payment will be made on the next Margin Cycle which will be the next Business Day)

Position Limit https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF
NODAL EXCHANGE CONTRACT SPECIFICATION

Washington Carbon Allowance Vintage 2027 Option (Futures Style Margining)

ITEM SPECIFICATION

Contract Description An option of the Washington Carbon Allowance Vintage 2027 Future

Option Style European

Option Contract Code WBK

Underlying Futures Contract Washington Carbon Allowance Vintage 2027 Future 

Contract Code for Underlying 

Futures WBK

Hours of Trading As defined at http://www.nodalexchange.com

Contract Size per Lot 1 lot of the Underlying Contract

Unit of Trading 1 lot, as defined in Contract Size per lot

Strike Price

A minimum of ten Strike Prices in increments of $0.05 above and below the at-themoney Strike Price. The at-the-money strike price is the closest interval nearest to 

the previous day’s Settlement Price of the Underlying Contract. Strike Price 

boundaries are adjusted according to futures price movements. User-defined Strike 

Prices are allowed in $0.05 increments.

Currency US Dollars

Minimum Tick $0.001 per Washington Carbon Allowance

Settlement Price Precision $0.001 per Washington Carbon Allowance

Last Trading Day

At 4:00 pm EPT on the 15th calendar day of the delivery month. Where the 15th 

calendar day is not a Business Day, the Last Trading Day shall be the first Business 

Day following the 15th calendar day of the delivery month

Contract Series

Quarterly contracts for current year, plus an additional 2 years. The exchange may 

list any other calendar month contract off the standard listing cycle for up to 10 

years.

Premium/NLV

The premium of a futures-style option is paid/received on the next margin cycle 

following the option exercise based on the last settlement price of the option 

contract and contract size on the exercise day.

Daily Settlement Price Determined by the Exchange based on Exchange activity, other market data, and 

extrapolation to traded Option contracts, as appropriate

Exercise

Exercise of In-the-Money Options is automatic on the Last Trading Day unless the 

Exchange is notified by 5:30 pm EPT on the Last Trading Day (1) to allow the In-theMoney Options to expire without exercise or (2) to exercise expiring Out-of-theMoney Options

Settlement Method Exercise into Underlying Contracts

Position Limit

Same with underlying contracts. Option positions are weighted by Option delta and 

combined with Underlying Contracts position. Underlying contracts’ position limits 

can be found at 

https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF