It is reported that coal trading platform globalCOAL has collaborated with global futures exchange the Intercontinental Exchange to introduce a financially settled coal futures contract, entitled the ICE Newcastle Futures contract, specifically designed for the Asian markets.

Mr Eoghan Cunningham CEO of globalCOAL predicts high demand will fuel a strong start. He said that "These critical conditions have resulted in significant pent up demand for a cleared coal price risk management product."

Mr Cunningham said that liquidity levels in the over the counter coal markets have not recovered since the financial crisis, pushing traders towards the safer and more robust environments of exchanges. He added that "The trading styles of the banks seem unchanged but there has been a liquidity effect. The volumes of trade of OTC swaps on ICE have surged recently. In August the ICE traded 12 million tonnes, in September it went up to 25 million and last month it we traded 34 million tonnes."

Mr Cunningham asserted that these exchanges have become more appealing because of the attraction of the clearing house and the reduction in bureaucracy. He added that "Trading on exchanges eliminates financial risk, and it attracts players who do not have access to the OTC market like the Asian consumers and producers, who may not have the contractual paperwork in place to trade in the OTC market."