21st Aug 2014 11:51
LONDON (Alliance News) - ICAP PLC Thursday said its energy business has launched a global coking coal desk, and expects a "considerable increase" in volumes over the coming months as the number of trading participants grows.
In a statement, the interdealer broker said that ICAP Energy's first coking coal trade, between a European-based bank and an international trading company based in Singapore, was cleared via the CME.
According to ICAP, coking coal derivatives have grown in significance due to a greater need for price risk management in a highly volatile physical coking coal industry. The interdealer broker said that physical players have migrated away from longer-term, fixed-price contract terms in favour of a more spot-based, index-linked contract.
"The launch of our global coking coal business underpins ICAP's interest in ensuring the development and growth of the global commodities markets while identifying and creating trading opportunities for our customers," George Dranganoudis, Managing Director of ICAP Energy Asia Pacific, said in a statement.
"The CME-cleared coking coal contract adds much-needed transparency for participants in the steel complex. Traders now benefit from a transparent free on-board Australia price as well as greater certainty for CFR China buyers who are able to identify relative value netback prices from the world?s leading coking coal exporting country," Dranganoudis added.
ICAP shares were Thursday up 0.3% at 372.60 pence.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
IAP.L