CME also offer an interesting sustainable clearing product that tracks any on-exchange or OTC derivative trade cleared through CME Clearing where the hedge is used to manage the risk of financing a sustainable business project. Eligible trades are mapped to sustainability classifications that are published by a designated list of industry bodies. Governance of the sustainable clearing programme is overseen by a Criteria Committee with representation from Futures Commission Merchants. CME clearing member firms are then able to directly measure and track progress on their own sustainability journeys and report those outcomes to internal and external stakeholders.


The million dollar question for the clearing industry is what now? It seems likely that, as ever, the clearing industry will adapt and reinvent the product offering as ultimate customer demand


dictates. That customer demand will be driven by what is happening in the real world energy transition as the winners and losers emerge from the landscape of alternative energy sources. So we can expect to see that demand driving the same requirements for risk management and hedging services as for traditional energy sources. Ultimately the customer will decide and the clearing markets will evolve to meet that demand. However this story plays out, it is bound to be a long and interesting journey.


Stuart Jackson Managing Director, ADM Investor Services International Limited E: stuart.jackson@admisi.com T: +44(0) 20 7716 8062


Counterparty credit risks are effectively mutualised between the clearing house and its members, creating a robust and resilient ecosystem which both strengthens markets and provides resilience to black swan events.


15 | ADMISI - The Ghost In The Machine | Sustainability Edition 2023


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