LCH Clears OTC Coal Options Trades

The first single expiry over-the-counter coal options trades have been cleared by LCH.Clearnet.

The first single expiry over-the-counter (OTC) coal options trades have been cleared by LCH.Clearnet. Initial transactions have totaled 670 lots in API 2 options to date, across both quarterly and calendar tenures, touching volumes of 2.46 million tonnes. The coal option contracts, which are based on Rotterdam in the Netherlands and Richards Bay in South Africa, are traded in multiples of 5,000 tonnes per month. The contracts exercise into swaps settled against API 2 and API 4 index prices published by Argus/ McCloskey’s Coal Price Index Report.

Click here for the release from LCH.Clearnet.