Coal futures contract on hold

ASX delays the launch of its thermal coal futures contract.

Australia’s ASX has delayed the launch of its thermal coal futures contract as regulatory clearances force the listing date to be postponed.

The ASX intended to list its thermal coal futures and options on 21 April, however on-going regulatory processes and operating rules to support the contract has postponed the date until further notice.

ASX general manager for emerging markets, Anthony Collins, told MINING DAILY the delay will not materially impact the product offering, and said market participants had been previously informed of the delay.

The market for sea-borne thermal coal in the Asia Pacific, which accounts for 70% of the global market, underpins international energy markets and directly impacts the global price of coal.

According to Collins, the coal futures and options will provide a mechanism for market participants to manage their exposure to price and counter-party risks.

“It will provide a robust price signal for firms with exposure to sea-borne thermal coal in the Asia Pacific and additional tools to complement the growth of the OTC market,” he said.

The coal futures, based on high-quality thermal coal typically sold to Asian markets, will have contract units of 1,000t each and be exported from the port of Newcastle in NSW.

ASX will inform the market of new listing dates once regulatory clearance has been received.

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