Samsung Asset Management Selects ICE Data Indices for KODEX Europe Carbon Allowance Futures ICE(H) ETF Covering ICE EUA Futures Contracts
Intercontinental Exchange, Inc. (ICE), a leading global provider of data, technology and market infrastructure, announced that Samsung Asset Management has licensed the ICE EUA Carbon Futures Index for a new exchange traded fund (ETF), the KODEX Europe Carbon Allowance Futures ICE(H) ETF.
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The ICE EUA Carbon Futures Index measures the performance of a long-only basket of ICE EUA Futures Contracts. Each EUA contract is euro-denominated and represents a lot of 1,000 Carbon Emission Allowances (“EUA”) that are deliverable to or from the Union Registry under the European Union Emissions Trading System. The index will serve as the benchmark for Korea’s first carbon-based ETF and the first of its kind globally solely tracking the performance of EUA contracts. The new ETF is designed to allow Korean and global investors to participate in carbon futures markets more efficiently.
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“A growing number of market participants are looking to use global markets to offset their carbon footprint, manage the cost of carbon, and assess climate transition risk,” said Magnus Cattan, VP, Fixed Income and Data Services, APAC at ICE. “Samsung Asset Management stands as one of Korea’s foremost asset managers, and this new product helps address the diverse and evolving needs of its clients by allowing investors to access market-based carbon prices through a single investment instrument.”
“We were drawn to ICE because it offers our customers access to one of the largest and most liquid environmental markets in the world,” said Jaehun Jeong, Portfolio Manager at Samsung Asset Management. “The ICE EUA Carbon Futures Index tracks one of the most actively traded carbon markets and represents some of the largest economies in the world. As market participants continue to pay increasing attention to the energy transition and climate risk, this ETF will provide greater hedging and trading opportunities for retail and institutional investors.”
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