FIS began marketing and broking coking coal derivatives in 2010, after identifying a need for risk management tools to hedge and trade this increasingly volatile product.
Freight Investor Services has successfully incubated successful swap markets in freight, iron ore, fertilizers, steel and scrap and bunker fuel and can bring a decade of experience to bear in coking coal.
"FIS believes coking coal has the potential to mirror the development of the iron ore swap market."
FIS believes coking coal has the potential to mirror the development of the iron ore swap market – a highly liquid market – attracting players from financial and commodity communities.
Sensing the opportunity of changing markets, FIS created the Virtual Steel Mill concept.
This mirrors similar complexes in energy and agriculture where inputs and outputs of the industrial process can be traded together, managing risk across the supply chain.