ASX to launch thermal coal contracts

THE Australian Securities Exchange will compete with globalCOAL and its joint venture with Intercontinental Exchange by launching futures and options contracts for trading free-on-board Newcastle thermal coal.
ASX to launch thermal coal contracts ASX to launch thermal coal contracts ASX to launch thermal coal contracts ASX to launch thermal coal contracts ASX to launch thermal coal contracts

 

Blair Price

Trading is expected to start on April 21, with the futures contracts sufficient to support four calendar years and the options over six-month, three-quarter and four calendar-year periods.

The bourse said the contract units of 1000 tonnes of thermal coal meet Japanese requirements, with a pro-rata adjustment for net calorific value, and fixed percentage discounts for ash and sulphur levels.

The new contracts will have near 24-hour trading for the benefit of Europe and Asia and will settle each day at 4:30pm Australian Eastern Standard Time.

ASX is also launching new contracts for Victorian wholesale gas futures on May 5, and New Zealand electricity on April 28.

Currently the globalCOAL NEWC index is the standard for Newcastle thermal coal prices and is updated weekly every Monday on globalCOAL’s website.

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