Launch of SGX Thermal Coal Futures

Singapore Exchange (SGX) is pleased to announce the launch of two thermal coal futures contracts on Monday, 21 October 2013.  The two contracts are:

  • SGX API 8 CFR China Coal Index Futures
  • SGX IHS McCloskey Indonesian Sub-bit FOB Index Futures Contracts

 

SGX Thermal Coal Futures will further enhance the current suite of AsiaClear Futures offerings to meet the needs of customers with a choice of futures and swaps. These futures contracts are fully fungible with their corresponding swaps currently cleared by SGX-DC. The contracts will be traded and cleared on SGX-DT and SGX-DC, respectively.

With a choice of futures or swaps,  Asian thermal coal miners, consumers and traders can fulfill their risk management and trading needs during Asian time zone. The sea-borne trade continues to expand and have nearly doubled over the last five years. Asia continues to play a significant and critical role as both supplier and consumer of thermal coal.  With the increasing demands and trade flows into and within Asia, market participants need relevant hedging instruments based on Asian coal benchmarks to better manage their risks.

Summary contract specifications of the new futures contracts are tabulated below.

 

Product

SGX API 8 South China Coal

Index Futures

SGX IHS McCloskey Indonesian

Sub-Bit FOB Index Futures

Contract Size

1 lot = 100 metric tonnes

1 lot = 100 metric tonnes

Ticker Symbol

CFF

CIF

Minimum Price Fluctuation

US$0.01 per tonne (US$ 1.00)

US$0.01 per tonne (US$ 1.00)

Contract Months

Up to 24 consecutive contract months starting with current month and 12 consecutive months will be added upon expiry in December.

Trade Registration or Trading Hours

(Singapore time)

T session: 8.00am – 8.00pm

T+1 session: 9.00pm – 2.00am

Last trading day: 8.00am – 8.00pm only

 

T session: 8.00am – 8.00pm

T+1 session: 9.00pm – 2.00am

Last trading day: 8.00am – 8.00pm only

Last Trading Day

Last publication day of the API 8 marker in the contract month

Last publishing day (Friday) of the weekly IHS McCloskey Indonesian Sub-Bituminous FOB marker in the contract month. If the last trading day is a holiday, the preceding business day will be the LTD.

Final Settlement Price

Cash settlement using the arithmetic average of all publications of the API 8 index published in the Argus/McCloskey Coal Price Index Report in the expiring contract month, rounded to 2 decimals places.

Cash settlement using the arithmetic average of all publications of the IHS McCloskey Indonesian Sub-Bit FOB marker in the expiring contract month, rounded to 2 decimals places.

 

The Exchange looks forward to market’s continued and increased participation.

 

For further information on the SGX Thermal Coal Futures Contracts, please visit www.sgx.com/asiaclear or contact:

Patrick Yeo at patrick.yeo@sgx.com  or tel: (65) 6236 5371

Yu Qing Jing at qingjing.yu@sgx.com or tel: (65) 6236 8254

Srinidhi at srinidhi.raghavendra@sgx.com or tel: (65) 6236 8147