Nasdaq to power carbon credits spot exchange CIX

Rick Steves

Climate Impact X (CIX) has partnered with Nasdaq to leverage its robust matching technology to power its spot exchange for quality carbon credits.

Slated for launch in early 2023, the exchange will enable two-way spot trading via standardised contracts, increasing access to transparent pricing signals and real-time market data.

CIX’s exchange for quality carbon credits aims to serve the growing needs of financial institutions and institutional investors and to unlock price transparency and liquidity in the voluntary carbon market.

Carbon credits have a range of attributes that can influence their price – such as the type of project or its location – since buyers value these characteristics differently. This inconsistency creates challenges in matching an individual buyer with a corresponding supplier, and can often be a time-consuming and inefficient process.

CIX removes bottlenecks to supplier financing

CIX’s spot exchange will match buyers and sellers based on unique requirements so that buyers can meet their regulatory obligations. The exchange removes bottlenecks to supplier financing, further enabling the growth and development of the global carbon markets.

Mikkel Larsen, Chief Executive Officer of CIX, said: “One of CIX’s goals is to create strong pricing signals for the liquid market. Enabling a trade matching process that is as seamless as possible will help to simplify the buyer’s journey and improve price transparency in the voluntary carbon market. Nasdaq brings unparalleled expertise in matching technology. We are pleased to join forces on our journey to build a global carbon exchange that is underpinned by quality and transparency.”

Roland Chai, Executive Vice President and Head of Market Platforms at Nasdaq, commented: “As a technology partner to trusted market infrastructure operators and new markets around the world, Nasdaq is uniquely positioned to collaborate with a marketplace innovator like CIX to bring their bold climate vision to life through our SaaS technology platform. We look forward to partner with CIX to develop and evolve the global carbon industry.”

CIX was established as a joint venture between DBS Bank, Singapore Exchange (SGX Group), Standard Chartered and Temasek. The upcoming launch of its spot exchange rounds out the suite of platforms CIX is developing to flexibly serve the market as well as create strong demand and pricing signals.

Nasdaq’s role in carbon markets

Nasdaq’s market technology powers more than 2,300 companies in 50 countries, spanning the world’s financial industry, including capital markets infrastructure operators, market participants, banks, and regulators.

The exchange operator’s Marketplace Services Platform will power resilient and dynamically scalable trading on CIX’s cloud-based SaaS environment.

The technology agreement between CIX and Nasdaq is the most recent step in Nasdaq’s efforts in the intersection of carbon transformation and technology space. Earlier in 2022, Nasdaq launched the world’s first carbon removal indexes. Meanwhile, CIX and Nasdaq partner Puro.earth recently announced a strategic partnership to increase access to quality nature- and technology-based carbon removal credits.

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