CFTC Withdraws Guidance Regarding Listing Voluntary Carbon Credit Derivative Contracts

WASHINGTON — The Commodity Futures Trading Commission today announced the withdrawal of its “Guidance Regarding the Listing of Voluntary Carbon Credit Derivative Contracts.” 

As stated in the notice of withdrawal, the Commodity Exchange Act Section 5c, and CFTC Regulations at Parts 38 and 40, already establish the regulatory framework for listing derivative contracts, including voluntary carbon credit (VCC) derivative contracts. The CFTC has determined the guidance resulted in placing a disproportionate focus on VCC derivative contracts, which could lead to confusion and inconsistencies in implementing the CFTC’s existing, well-established product listing regulatory framework.