ICE Futures To Launch New Coal Contracts

IntercontinentalExchange (NYSE: ICE), the leading electronic energy marketplace, announced that its regulated futures subsidiary will list two new contracts based on coal, pending regulatory approval. The coal contracts are based on Rotterdam in the Netherlands and Richards Bay in South Africa, and will be cash settled against the indices API 2 and API 4 as published in Argus/McCloskey’s Coal Price Index Report.

The contracts are traded in multiples of 5,000 tonnes, with a minimum price fluctuation of 5 cents/tonne and are available for six months, six quarters and six seasons. The trading hours of the contract will be 07:00 – 17:00 London time.

“We are pleased to be able to respond to the needs of our market participants for hedging and risk management tools in the coal markets,” said David Peniket, President and Chief Operating Officer of ICE Futures.

These contracts will complement the existing utilities markets offered by ICE Futures including emissions, natural gas and electricity futures contracts. The underlying coal market is growing rapidly at approximately 1 billion tonnes annually. Additionally, clean-burn technology is making coal-fired power generation increasingly attractive across Europe and North America.

Background:

API 2 and API 4 are used under licence from Argus Media Limited/The McCloskey Group Ltd. All copyrights and database rights in the API 2 and API 4 indices belong exclusively to Argus Media Limited/The McCloskey Group Ltd. All rights reserved.