2019 Press Releases

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AUTHORISATION OF GLOBALCOAL AS AN APPROVED BENCHMARK ADMINISTRATOR UNDER THE EUROPEAN UNION BENCHMARKS REGULATION BMR

London 16 December 2019


globalCOAL, the world's leading online physical coal trading platform, price referencing agency and creator of SCoTA, is pleased to announce that it is now approved by the FCA as a Benchmark Administrator under the European Union Benchmarks Regulation (BMR) which requires approval by 1st January 2020.


Published in the ESMA Register of Benchmark Administrators on 16 December 2019, globalCOAL’s approval enables its key indices including gC NEWC and gC RB to be used as settlement against ICE derivatives. The Benchmarks Regulation requires the use of sufficient and reliable data and robust methodologies. In particular, it calls for the use of actual transaction input data where possible. globalCOAL’s registration underlines its commitment to high standards in benchmark administration ensuring objectivity, quality, reliability, and integrity of its benchmarks for market participants.


In the interest of the market, globalCOAL invests much time and effort in ensuring that its benchmarks are robust and reliable. A strong framework of safeguards is in place, to support the trustworthiness of the gC benchmarks. An independent oversight of processes ensures that these safeguards continue to operate effectively. The calculation of the gC benchmark is transparent and automatic, without the use of any discretion or judgement.


The underlying data for the globalCOAL benchmarks are derived from trading activity on the globalCOAL on-line trading platform. The calculation of each benchmark follows a similar methodology that has long been accepted in the market. A number of trading screen rules support the reliability of the benchmarks by ensuring that bids and offers are genuine expressions of a willingness to trade at those levels and that transactions are genuine.


globalCOAL is regulated by the UK's Financial Conduct Authority and by the National Futures Association in the USA. Any abuse of those physical markets which contribute to an index that affects the derivatives markets is a criminal offence.


“The European Union Benchmarks Regulation, supervised by the FCA, is the key legislation in helping to ensure the avoidance of potential conflicts of interest in the benchmarking business, making sure that stringent standards are met, before approvals are given.” says Martin Abbott, CEO of globalCOAL. “Being registered as an authorised Benchmark Administrator is of paramount importance to globalCOAL, without which, exchanges in the EU would not be able to use our benchmarks in settling financial contracts and we are very proud to have achieved this milestone.”


Andrew Goldsmith, General Counsel at globalCOAL comments: “Being approved by the FCA as a Benchmark Administrator is the culmination of months of in-depth analysis by the regulator of our management of conflicts of interest, the suitability of our benchmark methodologies for measuring the prices of the underlying markets and what we do to prevent and deal with potential market abuse. We are delighted with the approval of our application by the FCA, which underpins the effectiveness of our processes and the reliability of our methodologies.”


About globalCOAL


globalCOAL is the leading online trading platform where global market participants buy and sell physical thermal and metallurgical coal of a standardised quality, on standardised delivery terms, based on SCoTA - the world's standard coal trading agreement.


globalCOAL acts as a broker for the platform’s clients. globalCOAL calculates and publishes coal price benchmarks and other indices by means of transparent methodologies. Those benchmarks are used as the settlement prices for coal derivatives traded on ICE and via the OTC market.


Market participants use globalCOAL’s price data as a reference in physical and derivative contracts, for risk management, market analytics, strategic planning and for a variety of other purposes to facilitate the day to day running of their coal business.


gC approved Benchmarks


globalCOAL NEWC Index
The globalCOAL NEWC Index is a reference price for high quality (6,000kcal/kg) thermal coal delivered on a free on board basis at Newcastle Port in New South Wales, Australia. Input data are transactions, bids and offers in the NEWC product, sourced from the globalCOAL trading platform.


globalCOAL RB Index
The globalCOAL RB Index is a reference price for high quality (6,000kcal/kg) thermal coal delivered on a free on board basis at Richards Bay, South Africa. Input data are transactions, bids and offers in the RB1 product, sourced from the globalCOAL trading platform.


globalCOAL DES ARA Index
The globalCOAL DES ARA Index is a reference price for high quality (6,000kcal/kg) thermal coal delivered on a DES basis at the ports of Amsterdam, Rotterdam or Antwerp in Northern Europe. Input data are transactions, bids and offers in the DES ARA product, sourced from the globalCOAL trading platform.


Press and Media Contact:


Alison Ellmann
Alison.ellmann@globalcoal.com
Tel: +44 20 7776 5905


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globalCOAL Expands its Metallurgical Coal Offering with New Premium Low-Vol Product

globalCOAL Expands its Metallurgical Coal Offering with New Premium Low-Vol Product

LONDON AND SINGAPORE – 12 September 2019

globalCOAL announces today that it is introducing spot and forward markets for premium low volatile coking coal on its online coal trading platform, starting 9th October 2019.

The new product, ‘HCCLV’, will initially allow delivery of BHP Mitsubishi Alliance (BMA) Saraji Coking Coal and Peak Downs Coking Coal on a FOB Australia basis.

HCCLV bolsters globalCOAL’s Australian origin metallurgical coal offering, which already includes successful markets in premium medium volatile coking coal (‘HCCA’). More than 9.1 million tonnes of physical HCCA coal have been transacted on the globalCOAL platform since the launch of the product in October 2015.

Additionally following consultation with the market, a revised version of HCCA will be effective from 6th January 2020 to ensure that the Relevant Standard Specification of the product offering are aligned with market requirements.

“Price visibility is a major issue in the coking coal market”, commented Philip Shawcross, Head of Metallurgical Coal at globalCOAL. “Bringing the trade of premium low-vol coals onto a transparent online environment will make a significant difference to the amount of reliable pricing information available to market participants – as well as facilitate the spot trade of these coals.”

Martin Abbott, CEO of globalCOAL, added: “globalCOAL’s product portfolio already spans the world’s most liquid seaborne thermal coal hubs. Our metallurgical coal offering continues to grow, trading volumes are increasing, and we will continue to reflect the market realities with our product development.”

 

//ENDS

 

About globalCOAL®

 

globalCOAL provides a venue for online trading of thermal and metallurgical coal. Its standard specifications and delivery terms and conditions (SCoTA®) enable quick and efficient transactions, whether online or offline. The reliable and objective data its trading platform generates has helped bring much needed transparency and price visibility in the seaborne thermal and metallurgical coal markets. For more information, please visit www.globalcoal.com.

 

CONTACT

 

Philip Shawcross                                                  Alison Ellmann

Head of Metallurgical Coal                                Marketing & Communications

philip.shawcross@globalcoal.com                   alison.ellmann@globalcoal.com

T  +44 20 7776 5914 (London)                          T  +44 20 7776 5905 (London)


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globalCOAL launches new Benchmark Oversight Committee

 

LONDON & SINGAPORE -- 11 June 2019

 

As part of its commitment to providing robust price indices, globalCOAL has further strengthened its compliance structure with the addition of a Benchmark Oversight Committee.

 

The Benchmark Oversight Committee’s primary task will be to assess and challenge any globalCOAL decisions relating to the accurate formation of its indices, such as the exclusion of orders from the platform or of screen data from the benchmarks, and actions taken against parties involved. It will also handle any Market Member complaints concerning such matters.

 

Importantly, members of the Benchmark Oversight Committee will be completely independent from globalCOAL’s management, and from any of the company’s shareholders or Market Members. This will allow the Committee to be free of potential conflicts of interests in its assessments and decision-making. 

 

The Committee will initially comprise:

 

  • Marc Bailey (Chair): Marc is a commodities and capital markets professional with over 30 years’ experience, and has been Independent Non-Executive Director of globalCOAL (and Chair of its Compliance Committee) since 2017.
  • Phillip Crowson: Phillip was Chief Economist at Rio Tinto for 15 years, and is a Professor and published author in the field of minerals and metals economics. He is the Chair of the London Metal Exchange’s Special Committee and Physical Markets Committee which deal in compliance matters.
  • Gregor Boyd: Gregor is a legal professional with extensive experience in commodity markets gained in private practice and in-house roles (currently with Eni Trading & Shipping).

 

The Benchmark Oversight Committee will play an important role in helping globalCOAL prevent potential abuse of its markets and in ensuring the robustness of its pricing information – including globalCOAL’s NEWC Index.


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