London 22nd December 2022: Global Commodities Holdings (GCH) will launch a spot trading platform for physical delivery of nickel during the first quarter of 2023.
Member companies will trade Class I nickel products on GCH’s platform, on a CIF basis across a global span of locations. Actual transaction data, plus qualified bids and offers, will be used to calculate a spot index for Class I nickel, with the index-qualifying market opening during the Singapore morning and closing at 1800 UK time. All trading will be underpinned by GCH’s specially commissioned Standard Metal Trading Agreement and will be for standardised qualities and shapes of nickel.
GCH has a twenty-year history of spot physical trading and index calculation through its subsidiary globalCOAL, which owns and operates the gC NEWC thermal coal index that is used as the settlement price for the gC NEWC Futures contract traded and cleared by ICE Europe. The globalCOAL team also maintains the Standard Coal Trading Agreement (SCoTA), the most widely- used coal trading agreement, with more than 3,000 registered users worldwide in the thermal and metallurgical coal markets.
GCH is authorised and regulated in various of its activities by the Financial Conduct Authority (FCA) in the UK, by the National Futures Association (NFA) in the US and operates in Singapore under permissions granted by the Monetary Authority of Singapore (MAS). GCH also undertakes an annual audit to maintain its IOSCO compliant status and is an FCA approved Benchmark Administrator. The same experienced compliance and benchmark oversight teams that supervise the existing coal products will supervise the metal trading business.
Martin Abbott, CEO of GCH says: “There is a dislocation in the price discovery process for spot nickel, with the weight of futures transactions being too heavy for the existing settlement process. There is a very strong argument for separating spot price discovery from futures market activity, allowing both functions to thrive. GCH does not operate in the futures space, but does have valuable experience in providing a market-derived spot price that can be used in physical contracts and for the settlement of other products”. Continuing, on engagement with the industry: “We look forward to working with the nickel industry to discover credible and transparent nickel pricing and would welcome expressions of interest from the market to help steer the evolution of the contract through participation in our Product Advisory Groups”.
PRESS NOTES
Only member companies can trade on the GCH screen. Members must have sufficient counterparties reciprocated in the credit matrix before they are permitted to post bids and offers on screen.
GCH is a London based company with a branch office in Singapore.
Destinations that will qualify for inclusion in the index calculation will be: Baltimore, Jebel Ali, Amsterdam/Rotterdam/Antwerp, Singapore, Kaohsiung, Johor, Busan and Shanghai.
All forms of Class I nickel will be tradeable on the platform, but index inclusion will be restricted to briquettes, and full plate cathodes.
The index calculation of the daily settlement price will be derived exclusively from orders and trades on the physical trading screen, which comply with the methodology criteria.
The minimum transaction size on the platform will be 20 tonnes.
GCH trading venues sit on the Trayport trading platform infrastructure.
Media and market enquiries:
Alison Ellmann
Head of Business Development
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We would like to you to inform of a proposed change to gC NEWC, gC RB, gC DES ARA and gC INDO index methodology that will be implemented on 3rd October 2022.
The minor change relates to the qualifying criteria for bids and offers that are placed within the spot months of the trading platform. Currently firm bids and offers for any delivery period within the prompt 3 months following the current calendar month are included in the index qualification criteria for the gC NEWC and gC DES ARA indices and prompt 2 months following the current calendar month for the gC RB and gC INDO indices.
We intend to update the methodologies so firm bids and offers qualify if they are placed within the prompt 3 months following the current Index Month for the gC NEWC and gC DES ARA indices and prompt 2 months following the current Index Month for the gC RB and gC INDO indices.
This change means the qualifying criteria for bids and offers matches those of trades at the end of a month where the qualifying spot months roll on an index as opposed to calendar basis. An example related to the gC NEWC and gC DES ARA indices is provided below
Current index methodology
Thursday 25th August 2022
- Trades qualify if the transaction is for coal delivered in the spot months of September, October, November
- Bids and offers qualify if they are placed in the spot months of September, October, November
Friday 26th August 2022
- Trades qualify if the transaction is for coal delivered in the spot months of September, October, November
- Bids and offers qualify if they are placed in the spot months of September, October, November
Monday 29th August 2022
- Trades qualify if the transaction is for coal delivered in the spot months of October, November and December
- Bids and offers qualify if they are placed in the spot months of September, October, November
Tuesday 30th August 2022
- Trades qualify if the transaction is for coal delivered in the spot months of October, November and December
- Bids and offers qualify if they are placed in the spot months of September, October, November
Wednesday 31st August 2022
- Trades qualify if the transaction is for coal delivered in the spot months of October, November and December
- Bids and offers qualify if they are placed in the spot months of September, October, November
Thursday 1st September 2022
- Trades qualify if the transaction is for coal delivered in the spot months of October, November and December
- Bids and offers qualify if they are placed in the spot months of October, November and December
Updated index methodology
Thursday 25th August 2022
- Trades qualify if the transaction is for coal delivered in the spot months of September, October, November
- Bids and offers qualify if they are placed in the spot months of September, October, November
Friday 26th August 2022
- Trades qualify if the transaction is for coal delivered in the spot months of September, October, November
- Bids and offers qualify if they are placed in the spot months of September, October, November
Monday 29th August 2022
- Trades qualify if the transaction is for coal delivered in the spot months of October, November and December
- Bids and offers qualify if they are placed in the spot months of October, November and December
Tuesday 30th August 2022
- Trades qualify if the transaction is for coal delivered in the spot months of October, November and December
- Bids and offers qualify if they are placed in the spot months of October, November and December
Wednesday 31st August 2022
- Trades qualify if the transaction is for coal delivered in the spot months of October, November and December
- Bids and offers qualify if they are placed in the spot months of October, November and December
Thursday 1st September 2022
- Trades qualify if the transaction is for coal delivered in the spot months of October, November and December
- Bids and offers qualify if they are placed in the spot months of October, November and December
We shall also update the definition of ‘Listed Public Holiday’ in the following index methodologies.
The index methodologies provide that orders and trades which take place on certain days (bank holidays) do not qualify for inclusion in the indices. For gC NEWC, gC RB and gC DES ARA, the days are certain UK bank holidays defined as New Year’s Day, Easter Friday, Easter Monday, Christmas Day and Boxing Day. This definition shall be updated to ensure that the non-index qualifying days are the relevant bank holidays rather than the feast days themselves (e.g. the Monday, 28 December 2021 Boxing Day holiday rather than the Saturday, 26 December Boxing Day).
Current index methodology
‘Listed Public Holidays’ do not qualify for inclusion in the Index calculation. They are defined here as New Year’s Day, Easter Friday, Easter Monday, Christmas Day and Boxing Day.
Updated index methodology
‘Listed Public Holidays’ do not qualify for inclusion in the Index calculation. They are the following national public holidays in England, as published by the UK government: defined here as New Year’s Day, Easter Friday, Easter Monday, Christmas Day and Boxing Day
The amended methodologies are below. The new versions for all indices shall be published on the globalCOAL website on 3rd October 2022:
gC NEWC
gC RB
gC DES ARA
gC INDO
Kind regards
globalCOAL®
Tel: +44(0)20 7776 5917
Fax: +44(0)20 7776 5902
www.globalcoal.com
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UK, Bristol - 15th February 2022 - Market Dojo, a UK based SaaS procurement software provider, has announced its sourcing solution has been selected by Global Commodities Holdings Limited (GCHL) to enable the online trading of non-standardised commodities in response to customer demand.
GCHL will utilise Market Dojo’s sourcing solution to host eAuctions on behalf of their market participants, outside of their existing standardised coal offering, which is tradeable on “globalCOAL”, their online trading platform. The eAuction functionality provides GCHL with the opportunity to offer a greater diversity of coal types, as well as other commodities, such as gas, oil, biofuels, metals and soft commodities that can be traded by a wider audience, yet follow a consistent online process.
The sourcing process provides transparency and the ability to adhere to compliance requirements throughout as well as providing auditability. Flexibility within the eAuction functionality is available in who is invited to participate, whether that be a specific audience or GCHL’s wider customer network.
GCHL will continue to offer the 21 different standardised coal types via their own online trading platform, underpinned by their Standard Coal Trading Agreement (SCoTA), which enables participants to know exactly what they are buying as the product specifications and the T&Cs are standardised. GCHL will also have the ability to assess demand and liquidity of products offered on the eAuction platform with a view to potential standardisation of further products.
Alun Rafique, CEO and Co-Founder, Market Dojo said: “We’re pleased to fulfil Global Commodities Holdings Limited’s requirements in extending their product offering to a wider audience and with a streamlined process. With a global reach, efficient and consistent processes are essential for saving time and our sourcing solution complements their existing online trading platform to enable them to start trading additional products quickly and easily.”
Martin Abbott, CEO of Global Commodities Holdings Limited, said: “In the software space, buy versus build is always an internal debate. The vast functionality and the flexibility of Market Dojo’s eAuction platform, coupled with years of continued development and investment, made this decision for us very straightforward. We are delighted to be able to extend our product offering to our customers and new market participants, who will quickly benefit from buying and selling non-standardised grades of physical commodities, backed by the reassurance of a flexible and fully compliant platform.”
To learn more about Market Dojo’s sourcing solution, or how any of their additional supplier engagement solutions can help your business, get in touch with a member of the team today at info@MarketDojo.com.
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About Market Dojo
Market Dojo helps procurement professionals worldwide solve inefficient sourcing and supplier management processes by digitalising these activities quickly and easily. More flexible and cost-effective than legacy software and more effective than emails and spreadsheets, Market Dojo empowers procurement professionals to control their costs, mitigate risk and centralise data. Unlike other software providers, Market Dojo provides transparent, on-demand pricing and enables the platform to be entirely self-service. With free access, users can make informed decisions before they commit. To find out more, visit MarketDojo.com and follow Market Dojo on LinkedIn.
About Global Commodities Holdings Limited
Global Commodities Holdings Limited 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.
Media Enquiries
Jenny Burt, Head of Marketing & PR, Market Dojo
Email: Jennifer.Burt@MarketDojo.com Tel: +44(0)117 230 9200
Laurence Poloni, Market Manager, London, globalCOAL
Email: Laurence.poloni@globalcoal.com, Tel: +44 (0)20 7776 5910
Richard Richardson, Head of Asia, Singapore, globalCOAL
Email: Richard.Richardson@globalcoal.com, Tel: +65 6311 4570
Alison Ellmann, Marketing and Communications, London, globalCOAL
Email: Alison.ellmann@globalcoal.com Tel: +44 (0)20 7776 5905
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