LONDON, UK - 11th December 2008
Yesterday, 10th December 2008, saw a new record established for the greatest volume of coal Futures traded on the ICE platform in one single day.
A total of 3,975 lots (equivalent to 3,975,000 tonnes of coal) were given up to the exchange via the contingent EFS mechanism. The lion share of this volume is attributable to the ICE Rotterdam coal contract which settles on the API#2 Index. 2,340 lots of ICE Rotterdam coal contracts were exchanged during yesterday's trading hours.
The newly-launched gC ICE Newcastle coal contract also saw a record day, with 900 lots (equivalent to 900,000 tonnes of coal) given up for clearing.
Open interest in ICE's coal Futures portfolio has grown steadily over 2008 and at the end of Wednesday totalled 22,820 lots.
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LONDON, UK - 5th December 2008
globalCOAL is pleased to announce the successful launch of gC ICE Newcastle Futures on ICE
Futures Europe.
The market, inaugurated this morning at 01.00 GMT, saw its first trade registered at 12.14 GMT for 5
lots of the December 2008 futures contract, which is financially settled against the globalCOAL NEWC
Index. The trade was given up to the exchange for clearing using the contingent EFS mechanism.
"This is the beginning of a new chapter for the Newcastle coal derivatives market," said Eoghan
Cunningham, Chief Executive Officer of globalCOAL. "Access to a cleared alternative to Newcastle
Swaps has the potential to unlock significant liquidity by providing efficiencies for firms that may be
impacted by the current credit markets. Cleared contracts can also help to pave the way for new
participants to trade financial coal. In 2009, globalCOAL estimates that cleared contracts could account
for 25% to 40% of the overall Newcastle coal derivatives market."
Follow the gC CIE NEWC Futures market:
Bloomberg ticker: XWA, FKA, YJA
Reuters ticker: 0#NCF
CQG Ticker: NEW
ThomsonReuters Ticker: NCF/-NS
IDC E-Signal Ticker: NCF ym-ICE
DTN Ticker: @NCF
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LONDON, UK - 4th December 2008
Beginning Friday, December 5, the gC ICE Newcastle Coal futures contract (NEWC futures) will begin trading on ICE Futures Europe. The market opens at 01.00 London local time. This new futures contract, developed jointly by IntercontinentalExchange (NYSE: ICE) and globalCOAL, will be financially-settled against the globalCOAL NEWC Index, the leading price benchmark for seaborne thermal coal in the Asia-Pacific region.
ICE Clear Europe, which will clear the NEWC futures contract, announced the scanning range and tiering (initial margin rates) that will be applicable to the new contract:
Month 1: US$10,400
Month 2: US$13,000
Months 3-12: US$13,000
Months 13 +: US$11,960
ICE Clear Europe also confirmed that substantial initial margin offsets will be offered for inter-commodity spread transactions between the three coal futures contracts listed on ICE: Rotterdam (settled against API#2), Richards Bay (API#4) and Newcastle. The offsets are designed to increase efficiencies for market participants by reducing capital requirements and will vary depending on the contracts' period (ranging from 45% to 80%).
globalCOAL Chief Executive Officer Eoghan Cunningham said of the launch: "We are optimistic that the gC ICE Newcastle coal contract will gain traction in the near-term. Some traders have been deferring business in the swap market in anticipation of the futures launch, whilst others have struggled with over-the-counter liquidity and credit issues. We also look forward to building open interest in the contract as traders clear historical swap positions through the Exchange of Futures for Swaps mechanism."
The gC ICE NEWC contract will be traded directly on the ICE platform, as well as through Exchange of Futures for Swaps (EFS), Exchange of Futures for Physical (EFP) and Block Trade mechanisms. ICE is offering a month-long fee holiday for the EFS/EFP/Block Trade transaction of Rotterdam/NEWC and Richards Bay/NEWC futures spreads from the date of the NEWC contract launch.
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LONDON, UK - 6th November 2008globalCOAL® and ICE Futures EuropeTM are delighted to confirm that the gC ICE Newcastle Futures contract will be introduced on the ICE platform on the 5th December 2008.
With the transition of ICE Futures Europe's open interest to ICE Clear EuropeTM successfully accomplished, this definitive schedule will ensure that all systems are bedded in and will enable a smooth launch for the much anticipated Newcastle coal Futures contract
globalCOAL Chief Executive Officer Eoghan Cunningham is upbeat about the prospects of gC ICE Coal Futures: "We've seen unprecedented volatility in the coal markets, and the credit crisis has taken its toll on the depth of credit available to market participants. These critical conditions have resulted in significant pent-up demand for acleared coal price risk management product such as the gC ICE NEWC Futures contract. We expect a strong start right from launch."
ICE Futures Europe President David Peniket said, "The addition of the NEWC Futures contract will play a key role in complementing ICE's existing Rotterdam and Richard's Bay contracts and result in an unequalled global seaborne coal offering for market participants. In light of the rising popularity of ICE Futures Europe's coal contracts in recent months, reaching a record 34Mt traded in October, we see a bright future for exchange-listed coal derivatives."
globalCOAL and ICE Futures Europe are also planning the launch of a physically-settled coal Futures contract for delivery of thermal coal to the Amsterdam-Rotterdam-Antwerp (ARA) region. This contract is currently being developed and is expected to be introduced on the ICE in 2009.
About gC ICE NEWC FuturesThe globalCOAL ICE Newcastle Futures contract will financially settle on the globalCOAL NEWC Index™ – the leading price benchmark for seaborne thermal coal in the Asia-Pacific region. The contract will be traded directly on the ICE platform, as well as through the contingent Exchange of Futures for Swaps (contingent EFS), Exchange of Futures for Physical (EFP) and Block Trade mechanisms. One lot will equal 1,000 tonnes of coal, and the contract will be traded in clips of 5 lots.
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LONDON (UK) AND SINGAPORE - 31 October 2008
globalCOAL is delighted to announce the launch of version 6b of its proprietary Standard Coal Trading Agreement (SCoTA). The purpose of the review - the first since the introduction of the DES ARA schedule in March 2007 - was aimed at refining and enhancing the ARA schedules of the contract.
Adrian Hills, globalCOAL Market Manager and coordinator of SCoTA developments said: "This new version of SCoTA will provide greater clarity for users of the contract. It streamlines much of the processes and gives greater guidance on specific situations, with the aim of reducing the need for interpretation or dispute resolution."
Highlights of the changes:
- Addition of a US specification as a delivery origin for both ARA schedules, including limits on chlorine ;
- Clarification of the nomination process ;
- Modification of the shipping tolerances and the cargo handling rates ;
- Addition of language covering ex-stock coal deliveries ;
- Clarification of lightering responsibilities.
Eoghan Cunningham, CEO of globalCOAL, said: "We are delighted to be delivering this latest version of SCoTA but we also realise it has been a lengthy process. With 87 Market Members, the globalCOAL community has possibly outgrown the current approach and we will be looking at streamlining the development of future versions of SCoTA. There are various participative models out there which we will be evaluating."
globalCOAL's SCoTA is the world's best established standard contract for international coal trading. Through a consultative approach, globalCOAL has developed and owns all the IP contained in the contract, including the quality specifications for Australian, Colombian, Polish, Russian, South African and US coals (ACPRSU). Brokers can use SCoTA under license.
The latest version of the contract, 6b, will be effective and supersede version 6a from 18:00 GMT on Sunday 9 November and trading will start on Monday 10 November 2008.
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LONDON (UK) AND SINGAPORE - 23 October 2008
globalCOAL announced today that D.E. Shaw Plasma Portfolios L.L.C., affiliate of global investment group D.E. Shaw, has become the latest organisation to join its online coal trading platform as Market Member.
The D.E. Shaw group is a global investment and technology development firm with more than 1,600 employees worldwide, and approximately $36bn in investment and committed capital as of 1st October 2008.
"We are proud to welcome such a renowned financial firm to the globalCOAL trading platform", said Patrick Markey of globalCOAL. "In spite of current market conditions, we forecast continued and growing involvement from investment sector firms such as D.E. Shaw Plasma Portfolios L.L.C. in the medium and longer term. These participants will add much needed liquidity and contribute to the development of the financial coal market - benefiting the whole coal trading community."
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LONDON, UK - 11 September 2008
globalCOAL is pleased to welcome Israel's National Coal Supply Corporation (NCSC) as the latest Market Member to sign up to its online coal trading service.
"It is an honour to see the NCSC join the globalCOAL community," said Eoghan Cunningham, Chief Executive Officer of globalCOAL. "As one of the Middle-East's major coal players, the NCSC's membership further strengthens globalCOAL's position as the world's leading trading platform for physical and financial coal."
The National Coal Supply Corporation is a wholly-owned subsidiary of The Israel Electric Corporation, itself 99.85% owned by the State of Israel. The NCSC is solely responsible for the procurement of the IEC's coal requirements, which totalled 13.3 million tonnes in 2007.
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LONDON, UK - 11 August 2008
Shenhua Coal Trading Company, the wholly-owned coal trading arm of Shenhua Group, has become the latest firm to join the globalCOAL® online coal marketplace as a Market Member.
Shenhua Coal Trading Co., headquartered in Beijing, owns the exclusive trading rights to Shenhua's coal production in both the domestic and international market, and is one of the country's top exporters. Shenhua Group, China's largest coal company, produced 235Mt of coal in 2007 - a 15.8% growth on 2006 output.
"We are thrilled with this significant development," said Patrick Markey of globalCOAL. "In its leading position as the largest coal producer in China, Shenhua brings a critical Chinese presence to the globalCOAL market membership. We hope this will pave the way for further Chinese involvement in commoditised coal trading activity."
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LONDON, UK - 25 June 2008
globalCOAL® is pleased to announce that the final specifications of the globalCOAL ICE NewcastleTM Futures contract have been agreed by ICE Futures EuropeTM. The contract is scheduled to be introduced on the ICE and will complement the API#2 and API#4 contracts currently offered on the platform.
"gC ICE NewcastleTM Futures are set to fill a significant gap in the coverage of cleared financial instruments for the international coal market," said Eoghan Cunningham, CEO of globalCOAL. "The new contract will provide a welcome opportunity for established players to reduce their credit risk exposure - a necessity in the current credit environment - but also attract new liquidity to the coal market. There is tremendous interest from investment banks, hedge funds and other institutional investors to gain access to coal price performance," he added.
The globalCOAL ICE Newcastle Futures contract will financially settle on the globalCOAL NEWC Index® - the leading price benchmark for seaborne thermal coal in the Asia-Pacific region. The contract will be traded directly on the ICE platform, as well as through the contingent Exchange of Futures for Swaps (contingent EFS) mechanism. One lot will equal 1,000 tonnes of coal, and the contract will be traded in clips of 5 lots.
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LONDON, UK - 11 June 2008
globalCOAL® is delighted to announce that European energy trading company Elektrizitäts-Gesellschaft Laufenburg AG (EGL) has become the latest Market Member to join globalCOAL's online coal trading platform.
"It is great to see another power sector player enter the globalCOAL community," said Eoghan Cunningham, CEO of globalCOAL. "This further underlines globalCOAL's central role as a hub for physical and financial coal trading in Europe and internationally."
EGL trades in electricity, natural gas and energy-related financial products. The company holds interests in Swiss power plants, owns a gas-fired combined-cycle power plant in Italy and holds long-term electricity supply contracts with electricity producers in France. It is investing in the construction of its own production capacities and transport infrastructure in key European markets.
Elektrizitäts-Gesellschaft Laufenburg AG (EGL) brings the total number of globalCOAL Market Members to 82.
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LONDON, UK -- 28 April 2008
globalCOAL® is delighted to announce that UBS AG London Branch has joined its electronic coal trading platform as Market Member.
"It is a pleasure to welcome UBS AG London Branch into the globalCOAL® Market Membership," said Patrick Markey, COO of globalCOAL®. "Their involvement further highlights the financial sector's appetite for coal exposure, and the growing role investment banks are playing in increasing liquidity in the coal markets."
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BRUSSELS AND LONDON, 18 April 2008 -- EFET and globalCOAL® are pleased to announce the publication of the EFET Coal Credit Annex, posted today on the EFET and globalCOAL websites. The Annex provides pro-forma documentation for credit enhancement of physical coal transactions conducted under SCoTA® - globalCOAL's Standard Coal Trading Agreement.
"This is a great improvement in the credit documentation underpinning the international trade in coal," said Eoghan Cunningham, CEO of globalCOAL. "We are grateful to EFET and its members for putting this annex together. In the current credit-wary international environment it is more important than ever to ensure that credit documentation is optimally managed," he added.
Jan Haizmann, Co-Chairman of the EFET Legal Committee said: "The importance of this new document consists in providing a sturdy credit framework for a contract whose emphasis has historically been on effective physical coal delivery. In our view, the future use of SCoTA® will be greatly enhanced by the EFET Coal Credit Appendix."
The purpose of the EFET Coal Credit Annex is to provide coal trade participants with an industry standard document which is both easy to use and which facilitates credit negotiations. The EFET Coal Credit Annex incorporates credit provisions including a Cross-Default provision referring to financial indebtedness, a Specified Transaction Default provision referring to other specified transactions between the parties, a Material Adverse Change provision with a comprehensive list of elective pre-insolvency events which can give the other party the right to request further performance assurance, and a Credit Support Provider / Credit Support Document provision where the parties may select the type of credit support required and the issuer of such credit support
The EFET Coal Credit Annex does not form part of SCoTA® but can be adopted bilaterally by any SCoTA® user.
The EFET Coal Credit Annex will be posted on:
http://www.globalcoal.com/general/downloads.cfm
http://www.efet.org/standardisation/standard
About EFET
Established in 1999, the European Federation of Energy Traders (EFET) is an industry association representing over 90 trading companies operating in more than 20 countries. The EFET mission involves improving conditions for energy trading in Europe and fostering the development of an open, liquid and transparent European wholesale energy market. More information about EFET views and activities is available on www.efet.org.
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LONDON, 7 April 2008
globalCOAL®, the leading electronic marketplace for thermal coal, is delighted to announce that it has resolved its dispute with London Commodity Brokers over the electronic brokering of globalCOAL's proprietary products (including SCoTA®) and non-payment of fees due for voice brokering of those products.globalCOAL® can confirm that London Commodity Brokers has undertaken to abide by the terms of their PLA and, more particularly, given specific undertakings not to launch their proposed White Screen trading system using globalCOAL® products. London Commodity Brokers has also agreed to pay commission fees for their use of the PLA.
As part of the settlement, London Commodity Brokers will pay legal costs incurred by globalCOAL in the dispute. Further settlement terms are confidential.
"We are pleased to see the favourable resolution of another legal battle, although disappointed that we had to resort to the High Court yet again." said Eoghan Cunningham, Chief Executive Officer of globalCOAL. "We are however determined to continue to vigorously defend our intellectual property against abuses of our licensing regime."
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LONDON AND ATLANTA, 2 April 2008 --globalCOAL ®, the leading electronic marketplace for thermal coal, and IntercontinentalExchange (NYSE: ICE), a leading operator of global derivatives exchanges and OTC markets, today announced a cooperation agreement to develop and launch two new coal futures contracts at ICE Futures EuropeTM.
The contracts will consist of financially settled NEWC ® coal futures, to be launched mid-2008, and physically settled ARA coal futures, to be launched later in the year
"Expanding further into the coal market is a natural extension of our global energy complex," said David Peniket, President of ICE Futures Europe. "We believe that the development of traded futures contracts will help to build liquidity and transparency in the coal marketplace, and provide producers and consumers with new tools for managing their price risk."
"globalCOAL has a unique position in the coal market, with deep knowledge of the industry and its requirements, and a proven track-record in building the over-the-counter market. We are delighted to be working with them," Peniket said.
"The development of futures is the next stage in the commoditisation of the coal market and will provide tremendous opportunity for investors and pure financial players as well as physical coal market participants," said Eoghan Cunningham, globalCOAL Chief Executive Officer. "Market feedback from traders across this spectrum strongly indicates that a futures contract settled against globalCOAL's NEWC Index® will be successful in capturing liquidity."
ICE Futures Europe plans to launch financially-settled futures contracts based on the globalCOAL NEWC Index in the third quarter of 2008. The globalCOAL NEWC Index is based on bids, offers and trades on the globalCOAL trading platform with delivery in Newcastle, Australia, which is the leading reference point for over-the-counter trading in Asian coal markets. ICE and globalCOAL will also work with the market to develop a physically-delivered coal futures contract with delivery points in the Antwerp Rotterdam Amsterdam (ARA) region, which is the main European hub for oil and coal trading. The new contracts will be complementary to the existing financially-settled coal futures contract currently listed by ICE Futures Europe, API2 and API4, as published in Argus/McCloskey's Coal Price Index Report.
About IntercontinentalExchange
IntercontinentalExchange® (NYSE: ICE) is a leading operator of global exchanges and over-the-counter (OTC) markets. ICE offers futures and OTC markets on a single trading platform, including markets for crude oil and refined products, natural gas, power and emissions, as well as agricultural commodities and financial products such as canola, cocoa, coffee, cotton, ethanol, orange juice, wood pulp, sugar, foreign currency and equity index futures and options. ICE® conducts its energy futures markets, including the leading oil benchmark contracts, through its London-based exchange, ICE Futures EuropeTM. ICE conducts its global agricultural commodity, foreign exchange and equity index futures markets through its U.S. and Canadian exchanges, ICE Futures U.S.TM and ICE Futures CanadaTM, and offers clearing services through ICE Clear U.S.TM and ICE Clear CanadaTM. ICE's state-of-the-art electronic trading platform serves market participants in more than 55 countries. ICE is included in the Russell 1000® Index and the S&P 500 Index. Headquartered in Atlanta, ICE has offices in Calgary, Chicago, Houston, London, New York, Singapore and Winnipeg. For more information, please visit www.theice.com
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 - Statements in this press release regarding IntercontinentalExchange's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2007, as filed with the SEC on February 13, 2008.
SOURCE IntercontinentalExchange and Global Coal Ltd
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LONDON, UK, 25 March 2008
Global Coal Limited is pleased to announce that Chubu Energy Trading Inc has joined globalCOAL's platform.
Pat Markey stated that "We are pleased that Chubu Energy Trading has decided to join globalCOAL as a Market Member. Its Market Membership on globalCOAL is an important addition to globalCOAL's existing business in Asia. This is especially important given that the company is continuing to grow its presence specifically in Japan.
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LONDON, UK, 6 February 2008
Global Coal Limited is pleased to announce that Lehman Brothers Commodity Services Inc has joined globalCOAL's electronic trading platform.
Eoghan Cunningham, CEO of globalCOAL® , stated that 'Lehman Brother's Market Membership is a significant addition to globalCOAL's existing Market Membership and further underlines the importance of coal trading to the financial sector. We are delighted to have them on board as Market Members'
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LONDON, UK, 04 February 2008
Global Coal Limited is pleased to announce that Centennial Coal Company Limited has joined globalCOAL's electronic trading platform.
Eoghan Cunningham, CEO of globalCOAL® , stated that 'Centennial Coal Company Limited's Market Membership is a significant addition to globalCOAL's existing Market Membership, adding another strong physical presence on the platform and increasing liquidity'.
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