CBL Markets, an exchange operator for environmental commodity markets, and the Minneapolis Grain Exchange (MGEX), announced on Tuesday that the first trade on the California Carbon Allowance (CCA) spot contract has been executed.

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The first CCA contracts closed on Friday at a price of $12.84.

The partnership between CBL Markets and MGEX, first announced in 2015, is structured so that MGEX provides support and services for a spot market exchange trading Allowances and Offsets in the state-based program.

The California Cap-and-Trade Program is second in size only to the European Union Emissions Trading Scheme based on emissions covered and provides an example of how an economy-wide cap-and-trade system can function in the U.S.

“Our first trade in the California Cap and Trade market represents an important and exciting milestone for CBL Markets,” said Ben Stuart of CBL Markets. “We are committed to driving liquidity into the underlying environmental markets through our unique spot cleared product, and look forward to further expanding our offering in US environmental commodities.”

“Our expansion into environmental markets is an exciting and natural transition for MGEX following a long history in agricultural markets” added Mark G. Bagan, president and CEO at MGEX. “We look forward to continuing this partnership with CBL Markets as we identify new markets and opportunities to pursue.”

CBL Markets is the only exchange offering cleared spot trading of environmental commodities in the Regional Greenhouse Gas Initiative (RGGI) and now the California Cap-and Trade Program.

CBL Markets provides market participants with access to the world’s environmental commodity markets.  

MGEX was established in 1881 and is the only market for Hard Red Spring Wheat (HRSW), Apple Juice Concentrate (AJC), National Corn Index (NCI), National Soybean Index (NSI), Hard Red Winter Wheat Index (HRWI), Hard Red Spring Wheat Index (HRSI) and Soft Red Winter Wheat Index (SRWI) futures and options, as well as for HRSW calendar spread options (CSOs).