Pending regulatory approval, Intercontinental Exchange will add two new coal contracts on its regulatory futures subsidiary.
The coal contracts, based in the Netherlands and South Africa, will complement the existing utilities markets it currently participates in, ICE says, which include emissions, natural gas and electricity futures.
“We are pleased to be able to respond to the needs of our market participants for hedging and risk management tools in the coal markets,” says David Peniket, president and CEO of ICE Futures.
The coal market has been growing at an annual rate of 1 billion tons, ICE says, and clean-burning technology has increased European and North American interest in coal power, sparking the company’s interest in the market.