Abaxx Approves CIX As Custodian For Carbon Futures Contract

KUALA LUMPUR, July 9 (Bernama) -- Abaxx Technologies Inc announced that Climate Impact X (CIX), a global environmental markets exchange, has been approved as an eligible custodian for Abaxx Exchange’s carbon futures contracts.

Participants taking delivery under these contracts can now hold their credits with CIX, giving them an additional route to manage post-trade activity.

Abaxx Exchange Chief Commercial Officer, Joe Raia said market participants need clearer ways to price carbon exposure before they trade and more efficient ways to manage credits after they do.

“Abaxx carbon futures are designed to provide a transparent, exchange-traded price signal, and CIX’s approval as an eligible custodian expands the post-trade choices available to participants taking delivery under those contracts,” added Raia in a statement.

Environmental markets remain fragmented, with carbon credits held across multiple registries, creating operational complexity and added cost for companies moving assets between markets.

With CIX as an approved custodian, clients can use its omnibus custodial service and multi-registry connectivity to hold, transfer and retire credits delivered under Abaxx carbon futures alongside credits from their own spot market activities. The arrangement provides greater flexibility, enhances trading efficiency and reduces the need to maintain multiple service provider accounts or relationships.

The arrangement was first utilised on July 1 to facilitate the transfer and delivery of 120 lots under Abaxx’s CORSIA Phase One futures contract, with each lot representing 100 CORSIA Eligible Emissions Units (EEUs).

The arrangement covers Abaxx's Jurisdictional REDD+ and CORSIA Phase One futures contracts and forms part of CIX's ongoing efforts to build the market infrastructure needed to scale participation. CIX is currently connected to 12 registries, with plans to expand further.

-- BERNAMA