global coal newcindex presentation

8/8/2019 Global Coal NEWCIndex Presentation

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Presentation Contents

1. Index Basic facts

2. Index data

3. Weekly index calculation

4. Weekly index calculation diagram5. Transaction bid/offer weighting

6. Calculating the index example

7. Monthly index


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Index Basic Facts

Weekly and monthly figures in US$/t.

Weekly

Calculated each Friday at 12:00hrs London time

Based on all firm bids/offers and trades within that week

Monthly

Calculated on the last Friday of each calendar month at 12:00hrsLondon time

Equal to arithmetic average of weekly indices within that month


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Index Data

Transaction executed, firm bids / offer submitted to theglobalCOAL GV Trading screen

For delivery in the next 3 calendar months (current monthexcluded)

Bids/offers must be posted for a minimum of 15 continuousminutes (or traded)

Monday to Friday 02:00 12:00 London time

Primary holidays (e.g. Boxing Day excluded)


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Weekly Index Calculation

Based upon weighted average of:

1. Transaction element tonnage weighted average price of all

transactions deemed to be applicable data and collected during the

Data Week

2. Bid/offer element arithmetic average of the Daily bid/offer sub-

elements collected during the relevant data week

Weekly bid/offer component weighting fixed at 150,000t


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Qualifying

bids/asks FOR

THE DAY

Weekly Index Calculation

1. Bid/offer element

Absolute Rolling

Monday 25.80

Tuesday 24.90 25.35

Wednesday 24.75 25.15

Thursday 24.65 25.03

Friday 24.59 24.94

TONNES PRICE

60,000 25.00

120,000 24.80

Qualifying

bids/asks FOR

THE WEEK 2. Transactional element

24.94 24.87Weekly Index

24.90Weighted at 150kt Weighted at tonnage

traded

(24.94x150kt+24.87x180kt)/(150,000+180,000)


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Transaction bid/offer weighting

Bid-Offer Element Weighting (%)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

10

1

00

1

90

2

80

3

70

4

60

5

50

6

40

7

30

8

20

9

10

1,0

00

1,0

90

1,1

80

1,2

70

1,3

60

1,4

50

1,5

40

1,6

30

1,7

20

1,8

10

1,9

00

1,9

90

Transacted tonnage (kt)

As transacted tonnage increases, the bid/offer elements

weighting in the final weekly index decreases.


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Bid/offer filters

The NUMBER of applicable bid / offer prices included on adaily basis is the lower of

1. 10; and

2. 20% of the number of bids and offers; and

3. The number of bids or offers within 4% of the BEST bid/ask

In addition, the number of bids and offers included in theindex must always be equal


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Calculating the index - example

Assume today is Monday, April 22nd. Hence the indexcalculated will exclude prices posted for April delivery and

include prices posted for May, June and July delivery

Assume 7 bids and offers submitted for May, June and Julydelivery throughout the day

24.85 26.10 29.25

25.00 27.10 29.30

25.00 27.14

25.50 28.50

25.70 29.00

25.70 29.0025.70 29.25

Bids Offers


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STEP 1 count the numberof bids/offers qualifying for

the index under the 3 rules

below

24.85 26.10 29.25

25.00 27.10 29.30

25.00 27.14

25.50 28.50

25.70 29.00

25.70 29.0025.70 29.25

Bids Offers

RULE 1: no more than 10 bids/offers must beincluded in the index

RULE 2: number of bids/offers within 4% ofthe best bid/offer

RULE 3: no more than 20% of the number ofbids/offers must be included in the index

Bids: 10 Offers: 10

Bids: 7 Offers: 3

Bids: 1 Offers: 2


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STEP 2 take the minimumnumber of bids and offers

24.85 26.10 29.25

25.00 27.10 29.30

25.00 27.14

25.50 28.50

25.70 29.00

25.70 29.0025.70 29.25

Bids Offers

RULE 1: Bids: 10 Offers: 10

Bids: 7 Offers: 3

Bids: 1 Offers: 2

RULE 1:

RULE 1:

Bids: 1 Offers: 2MINIMUM


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STEP 3 take equal numberof bids and offers

24.85 26.10 29.25

25.00 27.10 29.30

25.00 27.1425.50 28.50

25.70 29.00

25.70 29.00

25.70 29.25

Bids Offers

Bids: 1 Offers: 2

Bids: 1 Offers: 1

Resulting Bid/Offer Element = Av. 25.70 & 26.10 = 25.90


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Monthly Index

globalCOAL publishes a monthly index derived from theweekly index

Calculated as the arithmetic average of each relevant weeklyindex

Based upon every Friday falling within the calendar month


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CONTACT US

London +44 207 776 5900Singapore +65 6538 7386

[email protected]

global coal newcindex presentation

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