Fastmarkets and Intercontinental Exchange (ICE) announced on 9 December the launch of the ICE Waste Cooking Oil (UCO) Gulf (Fastmarkets) futures contract to meet growing demand and address the complexities of the biofuel feedstock market.
The launch provides market participants with a new risk management solution in the renewable energy sector.
Fastmarkets says it is ideal for those who wish to understand UCO price movements without the need for physical delivery.
Fastmarkets said its assessment of UCO in the US Gulf of Mexico reflects the main market areas for UCO trade, capturing the broadest pool of data required for accurate market pricing.
This ensures convergence between futures and spot prices at contract expiry, further enhancing confidence in the operation of the market, Fastmarkets said.