LONDON AND SINGAPORE – 2 November 2020
Global Commodities Holdings Limited (‘globalCOAL’) is pleased to announce that following its announcement of globalCOAL Richards Bay Coal Futures actively trading on ICE on 20th October, there has been continued interest and active trading of the futures contract. Friday saw the first physical RB1 trade on the gC platform with EFP terms with both the physical and index legs settling on the gC RB index.
The 50,000 tonnes RB1 trade for loading in December 2020 was transacted at $61.75/tonne.
Martin Abbott, CEO of globalCOAL, commenting on the activity, stated, “globalCOAL is the primary source of data in the Richards Bay hub. This hub has seen heightened physical trading interest in the past months, increasing the need for reliable benchmarks against which companies can manage their risk exposure. The market is clearly re-evaluating its options in the Richards Bay coal market and I am delighted that gC’s robust and objective index methodology is recognised by the market, as well as by the UK’s Financial Conduct Authority, as a reliable reflection of market activity. “
The full specification for the globalCOAL Richards Bay product is set out in globalCOAL’s proprietary physical contract SCoTA®, which can be downloaded, under licence, from globalCOAL’s website at www.globalcoal.com.
For ICE clients wishing to view the gC Richards Bay futures market using WebICE; in order to add the contract to an existing or new portfolio: you will find the contracts under the Market Type ‘ICE Richards Bay Coal Futures’ and product ‘gc RB Coal Futures’. For those using Trayport Joule you will find the orders under the ‘Richards Bay Index ICE GC’ stack.
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LONDON AND SINGAPORE – 20 October 2020
Global Commodities Holdings Limited (‘globalCOAL’) is pleased to announce that globalCOAL Richards Bay Coal Futures is now actively trading on ICE; with the first trades executed through ICE on 19th and 20th October 2020. The transactions due for settlement in November 2020 for 1,000 tonnes each, were both concluded at a price of $61/mt. The futures contract will settle against globalCOAL’s Richards Bay index, which is calculated from actual bids, offers and trades for standardised RB1 spec coal on the globalCOAL trading platform. Full details of the index methodology can be viewed here.
Martin Abbott, CEO of globalCOAL, stated that, “Increasingly, we see the market demanding transparent pricing mechanisms for its physical and derivative trading activities. The gC RB index is a robust monthly benchmark, that is updated daily, and does not involve any trace of subjectivity in its methodology. Inputs are 100% transparent and the output is 100% objective. “
Continuing, he commented, “With the European Benchmark Regulation now in place, more and more market participants are looking into the index methodologies, which underpin the underlying benchmarks that the futures contracts settle against. globalCOAL was created by the market for the market and we constantly engage in ways to improve our product offering to satisfy market demands. globalCOAL consults with and welcomes comments from the market, on all aspects of our business, including reviews of our index methodologies to ensure they remain and continue to be appropriate to support the market’s risk management requirements. I am excited to follow this progress over the coming weeks.”
The full specifications for the globalCOAL Richards Bay product are set out in globalCOAL’s proprietary physical contract SCoTA®, which can be downloaded, under licence, from globalCOAL’s website at www.globalcoal.com.
For ICE clients which would like to view the gC Richards Bay futures market using WebICE; in order to add the contract to an existing or new portfolio: you will find the contracts under the Market Type ‘ICE Richards Bay Coal Futures’ and product ‘gc RB Coal Futures’. For those using Trayport Joule you will find the orders under the ‘Richards Bay Index ICE GC’ stack.
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globalCOAL is pleased to announce that it has launched the publication of its gC HCCA index. The index will provide the market with a new tool for pricing met coal. Using a transparent methodology, including only screen-based trades, bids and offers, we look forward to active participation from the industry over the coming months.
Existing gC data subscribers and Market Members will have visibility of this index data as part of their existing gC data package. The index calculator including the final index values and the historical data, can be accessed by logging in to the “Tools” section on the client zone of the gC website. From today, the daily Coal Market Report will include the gC HCCA index values.
Visitors to the globalCOAL website, who are currently not licensed to use gC’s data, can view the latest index and the methodology here. If you are interested in finding out more by obtaining access to the index calculator and to be permissioned to use the data for internal or external purposes, just email our data sales team at datasales@globalcoal.com, who will be happy to get in touch with you to discuss your data requirements.
If you have any questions relating to met coal, please contact MetCoal@globalcoal.com or for data licensing enquiries, please get in touch with datasales@globalcoal.com.
As always, we would welcome market feedback in the weeks and months following the launch.
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