Thursday, June 16, 2011

Singapore ramps up Indonesian sub-bit coal swaps

The Singapore Exchange (SGX) became the first exchange to clear over-the-counter Indonesian sub-bituminous coal swaps last November and business is reportedly booming.

"We're seeing brokers jumping up and wanting to join in," Zenny Tran, the leader of Singapore-based broker Ginga Petroleum's coal team, told Business Times. "They now believe the market liquidity is sufficiently big enough for them to come in," she said.

This week, BGC Radix Managing Director Richard Tan said his oil-broking firm here aims to start a physical broking desk for coal within the next six months and, in London, Tullett Prebon announced it will open its Singapore-based Asian coal desk in August led by Greg Kublikowski.

The Business Times described Singapore, as "at the centre of the vibrant Asian coal trade"  and noted Straits Asia Resources and Noble Group as coal producers listed on the SGX.

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