Platts Data Chosen as Basis for CME Group Coking Coal Swap Futures Contract

NEW YORK, July 25, 2011 /PRNewswire/ -- Platts spot price assessments have been chosen as the basis for CME Group's new coking coal swap futures contract, which was launched earlier today.  CME Group, the Chicago-based derivatives marketplace, introduced trading and clearing services for the new contract, which is based on Platts' physical market price assessments for metallurgical coal shipping from Australian ports. Platts is a leading global energy, petrochemicals and metals information provider and a top publisher of global benchmark price references.

"Platts first introduced daily price references for spot coking coal, a vital steel making ingredient, in March 2010, and we believe the ensuing robustness of the underlying physical market enable derivatives contracts such as the one launched by CME today, all of which facilitate the global industry's need for comparative valuations," said Gerald Bueshel, Platts director of global licensing. 

Full details of CME Group's Australian coking coal (Platts) swap futures contract, as well as other information, are available at http://www.cmegroup.com/trading/energy/. The Platts data, which this contract utilizes as a basis, are reported in publications such as Platts Steel Markets Daily, Platts Coal Trader International, Platts International Coal Report, and real-time service Platts Metals Alert. 

With today's launch, the total number of CME Group contracts settled on physical market price assessments published by Platts is approximately 450.

Platts became the world's first independent source of daily price assessments for metallurgical coal on March 15, 2010, with its launch of daily assessments for Hard Coking Coal free on board (FOB) Queensland, Australia ports, and cargoes of Hard Coking Coal delivered on a cost and freight (CFR) basis to northern China. Both assessments address the need of miners and steel mills for an independent daily spot assessment in the burgeoning Asian market, and their pricing-needs for short- and long-term contracts.

All of Platts' price assessment processes are underpinned by well-established, rigorous methodologies aimed at maintaining the integrity of the processes and the assessments they produce. Details of the methodology governing Platts' price assessment processes in coal can be found at: http://www.platts.com/MethodologyAndSpecifications/Coal.  

In addition to the above mentioned physical market price assessments, Platts provides price, supply/demand information and news for multiple types of coal and the full value chain of steel, as well as for the broader energy and metals complex.

For more information on the physical markets for coal, steel and metals, visit the Platts website at www.platts.com.

*Platts does not sponsor, endorse, promote or sell CME Group contracts.

About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals and metals information and a premier source of benchmark prices for the physical and futures markets.  Platts' news, pricing, analytics, commentary and conferences help customers make better-informed trading and business decisions and help the markets operate with greater transparency and efficiency.  Customers in more than 150 countries benefit from Platts' coverage of the carbon emissions, coal, electricity, oil, natural gas, metals, nuclear power, petrochemical, and shipping markets.  A division of The McGraw-Hill Companies (NYSE: MHP), Platts is headquartered in New York with more than 700 employees in more than a dozen offices worldwide. Additional information is available at http://www.platts.com.

About The McGraw-Hill Companies: Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy.  With leading brands including Standard & Poor's, McGraw-Hill Education, Platts energy information services and J.D. Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries.  Sales in 2010 were $6.2 billion.  Additional information is available at http://www.mcgraw-hill.com.

SOURCE Platts