At a Glance
Financial Services and Insurance
Data Analysis, Financial Evaluation and Planning, Sustainability and Energy Management Strategy
New York, NY
Daniel Farkas analyzed voluntary carbon markets to identify potential opportunities for new and innovative environmental derivatives.
CME Group is the world’s leading derivatives marketplace helping market participants to manage risk. Interest in derivative products designed to address the growing environmental awareness of customers across financial and commodity markets is rising, and as more investors consider environmental factors for their strategies, CME Group seeks to provide tools to help them manage risk.
For this purpose, Daniel was enlisted to analyze existing products and research new and evolving markets and potential hedging needs.
Daniel analyzed carbon registry issuances and retirements from approved registries such as the Verified Carbon Standard (VCS), the American Carbon Registry (ACR), Gold Standard (GS) and the Climate Action Reserve (CAR) to calculate the market size and deliverable supply of existing carbon offset futures.
In addition, he evaluated the market size of other emerging spot markets, while also supporting the Energy Research and Product Development Team in fulfilling regulatory compliance with rules regarding voluntary carbon markets and derivatives markets in general.
Using voluntary carbon market registry data, spreadsheet analysis and financial software (e.g., Bloomberg Terminal), Daniel analyzed developments in carbon credit issuances and retirements to determine market trends.
Furthermore, he investigated potential market dynamics that could affect supply/demand and/or give rise to the need for new risk management tools.