1. Total Weekly Volume of 31,829 allowances, +20x WoW increase.
2. RGGI ICE weekly average settlement price was $13.2, -1.29% WoW. Dec22 contract closed at $13.62 and Dec21 at $13.37.

ICE Regional Greenhouse Gas Initiative (RGGI) futures contracts traded just below the $13 before the auction results. Soon after the price rose to $13.49 and as of today (7th, December), continues to trade at this price point. The auction saw the Cost-containment reserve breached, releasing 4 million excess allowances into the market. Nearly 68% of allowances were bought by compliance entities (CE’s), satisfying a part of CE’s for the upcoming interim compliance surrender in March, 2022 and also satisfying a portion of the excess emissions post-pandemic. The first three quarters of 2021 saw 11 million tons emission more than the total allowances auctioned. The 4 million CCR allowances will reduce the demand on the circulating reverse bank to 7 million allowances.

Volume traded on the ICE exchange increased by 20x WoW, as futures traders awaited the auction results before making a move. Also, the thanksgiving week closed down trading for a part of the week. 44% of traded volumes were V22 Dec22 and 56% were V21 Dec 21. This is consistent with the usual mix of delivery.

Managed money completely retreated from the futures market, ending 3640 long contracts and purchasing 550 short contracts. The week saw an emerging trend of managed money increasing short positions. Swap entities saw a increase of 1522 new long positions and closed 466 short positions, indicating swap entities are bullish on current market trends. Compliance entities closed 1383 long contracts and also closed 2771 short contracts. This shows CE reducing exposure in the market on the two reasons: upcoming interim compliance period and a period of reduced volatility.

CFTC Data