In a significant milestone for the global carbon markets, Abaxx Technologies Inc., a leading financial software and market infrastructure company, has announced the execution of the first two carbon futures block trades on its Abaxx Exchange. This landmark event showcases the exchange's commitment to enhancing price discovery and providing market participants with robust risk management tools, crucial for driving the transition to a low-carbon economy.

Unlocking the Potential of Carbon Futures Trading

Pioneering Carbon Futures Contracts

Abaxx's carbon futures contracts, launched in June 2024, have been designed to address the pressing need for reliable price signals in the carbon emissions market. These centrally-cleared, physically-deliverable contracts aim to equip market participants with the necessary tools to effectively manage their risk exposure in the global carbon markets. By providing a transparent and regulated platform for trading, Abaxx Exchange is playing a pivotal role in facilitating the price discovery process, which is essential for accurately pricing carbon emissions and advancing decarbonization efforts worldwide.The successful execution of the first two carbon futures block trades, involving industry leaders Mercuria and HNK Alpha, is a testament to the exchange's ability to cater to the evolving needs of the commercial market. Mercuria, a renowned global energy and commodities trading firm, has chosen to utilize Abaxx Exchange's Environmental Futures to enhance its risk management strategies in the global carbon markets. This collaboration underscores the trust and confidence that leading industry players have placed in Abaxx's innovative market infrastructure.

Enhancing Price Discovery and Risk Management

The carbon futures contracts traded on Abaxx Exchange are designed to provide market participants with improved price discovery and risk management tools. The first trade involved 50 lots of December 2024 CORSIA Phase 1 Carbon Offset Unit Futures, transacted at a price of USD $24.00 per tonne of carbon dioxide equivalent (tCO2e). The second trade saw 50 lots of December 2025 JREDD+ Carbon Offset Unit Futures exchanged at a price of USD $17.75 per tCO2e.These centrally-cleared, physically-deliverable contracts offer market participants the opportunity to hedge their carbon exposure, mitigate risks, and gain valuable insights into the true value of carbon emissions. By providing reliable price signals, Abaxx Exchange is empowering businesses, investors, and policymakers to make informed decisions that support the global transition to a low-carbon economy.

Fostering Liquidity and Collaboration

Abaxx Exchange's commitment to building a thriving carbon futures market extends beyond the successful execution of these initial trades. The exchange has been actively collaborating with global market participants to ensure that its contracts meet the evolving needs of the commercial market."We're proud that Mercuria has chosen to use Abaxx Exchange Environmental Futures to better manage their risk in global carbon markets," said Alasdair Were, Abaxx Exchange's Head of Environmental Markets. "We've built these contracts in collaboration with global market participants and to meet the needs of the commercial market, and we look forward to continue working with world-class trading firms like Mercuria to build liquidity in our carbon markets."Abaxx's suite of futures contracts, including those for LNG and carbon, are available for trading 14 hours a day, Monday through Friday, providing market participants with ample opportunities to access the exchange's services. The company's efforts to onboard a diverse range of clearing firms and execution brokers further enhance the accessibility and liquidity of its carbon futures market.

Driving the Energy Transition through Innovation

Abaxx's mission to build "Smarter Markets" extends beyond the carbon futures market. The company is leveraging its financial technologies and market infrastructure to address some of the world's most pressing challenges, including the energy transition. By developing and deploying innovative solutions that streamline communication, trade, and transactions, Abaxx is empowering market participants to navigate the complexities of the evolving energy landscape.The successful launch and adoption of Abaxx's carbon futures contracts are a testament to the company's commitment to driving positive change. As the global community continues to grapple with the urgent need to mitigate climate change, Abaxx's pioneering efforts in the carbon markets are poised to play a crucial role in facilitating the transition to a more sustainable future.