Ginga will list coal swaps products (API2*, API4*, gC ICE Newc futures) electronically and will also list Indonesian sub-bituminous (sub-bit) coal swaps and a sub-bit physical contract. The physical contract is being developed in conjunction with market participants and is based on the specifications of the McCloskey Indonesian Sub-Bituminous FOB Marker Index. The intention is that this contract will bring even greater transparency to this market.
âTrayportâs GlobalVision Broker System screen went live at Ginga today and we hope to have an increasing number of users, both in Asia and Europe, who will be able to view and trade Indonesian sub-bit coal physical and all swaps contracts on one trading platform,â said Zenny Tran, Coal Team Leader at Ginga. âWhen we have built increased liquidity in coal using the Trayport platform we hope to add other products; base oil being high on our initial list.â
âTrayport has provided the electronic trading system used by JOX, the Japanese Oil Exchange, for the past three years. Ginga was a founding shareholder in JOX and so had direct experience of working with Trayport. The widespread reach of Trayportâs Trading GatewaySM aggregator service, with over 160 trading firms relying on it to trade OTC and Exchange traded coal, and other energy products, further encouraged Ginga to adopt the hybrid voice/electronic brokerage model Trayport does so well,â said Jeremy Harris, Trayportâs VP for Asia.
âGinga sees a growing appetite to trade Indonesian sub-bit coal from producers, traders, end users and investment banks. As the sub-bit market evolves, hedging becomes even more necessary for market participants. Trayportâs combination of physical and swap capabilities, STP back office, risk management, clearing links and workflow aids make it an ideal platform for building market liquidity. We are pleased to have been selected by Ginga to provide their first electronic execution capability.â added Harris.
âIndonesian sub-bit coal is now on its way to become a fully tradable commodity and Ginga is proud to be part of the industryâs concerted effort in making this to happen. Being the first and the most active broker in this market, we are committed to continuous improvement in our service and contribution to market development. An electronic trading screen is certainly a necessary next step for us to provide more transparency and efficiency for the industry and for our clients who are located in various different time zones, from Asia Pacific to Europe and US,â said Gingaâs Zenny Tran. âOur aim is to gain market share in commonly traded swaps markets - API2*, API4* and gC Newc futures. Ginga believes Indonesian coal assets will distinguish us from other brokers.â