THE ROLE OF DERIVATIVE EXCHANGES IN SUSTAINABLE DEVELOPMENT

THE ROLE OF DERIVATIVE EXCHANGES IN SUSTAINABLE DEVELOPMENT

Embedding sustainability into commodity derivatives

This event occurs in Geneva Time (CET, GMT+2).

Many stock exchanges who are members of the Sustainable Stock Exchanges (SSE)  initiative are also commodity derivative exchanges. In addition, there also dedicated commodity derivative exchanges focused exclusively on this market. In order to achieve the Sustainable Development Goals (SDGs) and move the world to sustainable commodity production, it is important to work with commodity derivative exchanges as a key leverage point for establishing the marketplace for standardised sustainability themed products (e.g. sustainable agricultural products, green energy markets, responsibly produced commodities, etc).

The SDGs call on all actors, including the private sector, to work to address the world’s most pressing sustainability challenges. Given that the size of derivative markets far exceeds that of equity markets, it is an important area of investment and finance that needs to be harnessed to promote the achievement of the SDGs.

Commodity producers and users of commodity derivatives markets are increasingly concerned with specific sustainability aspects of commodities. Beyond commodity derivatives, other derivative products (e.g. weather futures, carbon emissions trading markets) may be instrumental in achieving climate adaptation and mitigation and other aspects of the SDGs.

This multi-stakeholder session will bring together key commodity derivatives players such as commodities exchanges, market intermediaries, commodity derivatives users and investors and securities market regulators to address opportunities and challenges for incorporating sustainability considerations into commodity derivatives.

The session will feature discussions of a new UNCTAD-SSE research report on the role of derivative exchanges and sustainable development. The session will support the further development of derivatives that embed sustainability principles. Exchanges and market participants will benefit from discussions on the opportunities and challenges involved in including sustainability considerations in the derivatives ecosystem.

Issues to be addressed:

  • What role can derivative exchanges play in promoting sustainable development?
  • Which commodities best lend themselves to the incorporation of sustainability principles?
  • What is the appropriate balance between transparency / allowing the user to choose vs setting the benchmark standard?
  • At what point does it become necessary for purposes of price discovery for sustainability issues to be included in the contract specification?

Speakers:

  • Mr. Kyle Edwards, Senior Director, Chicago Board Options Exchange
  • Mr. Owain Johnson, Head of Sustainability, Chicago Mercantile Exchange
  • Mr. Walt Lukken, President & CEO, Futures Industry Association
  • Mr. Mark Peterson, CEO, New Zealand Exchange
  • Mr. Ed Tilly, CEO, Chicago Board Options Exchange
  • Mr. Stuart Williams, CEO, Intercontinental Exchange Futures Europe

Event Manager: Mr. Anthony Miller

Contact email: Anthony.Miller@unctad.org