Singapore Exchange (SGX) has launched two thermal coal futures contracts – SGX API 8 CFR China Coal Index Futures, and 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 fulfil 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.