BarCap executes RGGI forward trade agreement

The agreement, called the US emissions allowance transaction annex, as published by the International Swaps and Derivatives Association (ISDA), has previously been used to document forward transactions of SO2 and NOx emissions allowances.

BarCap, in consultation with Calpine and Royal Bank of Canada, modified this existing documentation to include provisions that mitigate price and delivery risks associated with RGGI allowances. "These risks, and a lack of standardised documentation, have thus fa