Low volatility boosts interest in coal derivatives

Trading houses and hedge funds said to be taking bigger positions


Low volatility in the European coal market is leading to increased trading in financial coal, as commodity trading houses and hedge funds take on bigger positions in pursuit of returns, say market participants.

London-based Prospex Research estimates the financial coal market is on track to grow by 30% in 2014, reaching a record volume of 3,800 million tonnes. Such a rise would come on top of a similar increase of 32% in 2013.

Despite lacklustre prices, a variety of companies are increasing

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: