Montreal Exchange sees May 30 carbon-trade launch

TORONTO, March 14 (Reuters) - Montreal Exchange MXX.TO said on Friday that it plans to launch a futures market for Canadian carbon dioxide emissions on May 30, subject to regulatory approval.

The Montreal bourse, which runs Canada's market for interest rate, index and equity derivatives, plans to run the Montreal Climate Exchange as a joint venture with the Chicago Climate Exchange.

The two partners announced their plan to launch Canada's first exchange-traded carbon emissions contract in July 2006, and based on previous statements they had hoped to have it up and running before now.

The federal government gave more details about its emissions regulations earlier this week.

"The government of Canada has provided greater regulatory certainty regarding intensity-based emissions reduction targets and the definition of a single compliance standard for tradable credits," Luc Bertrand, president and chief executive of the Montreal Exchange, said in a statement.

"This will enable emitters to more accurately forecast their individual intensity-based reduction targets and exposures."

The exchange said it expects to get approval for the carbon futures contract from Quebec's financial markets regulator "in the near future."

The Montreal Exchange is in the midst of being acquired by Toronto Stock Exchange parent TSX Group (X.TO: Quote, Profile, Research).

On Thursday, a senior TSX Group executive said the type of carbon emission caps chosen by the federal government may shrink the potential market for trading credits and put the country out of step with other nations.