globalCOAL has released the latest version of its Standard Coal Trading Agreement (SCoTA), as well as two new tradable specifications on its online commercial screen. The new contract – SCoTA version 8 – has been subject to a general revision so that it can play the role of a master agreement. It now allows users to have too clear financial obligations in the event of contract failure – a key advantage in today`s challenging credit environment. In addition, the v8 structure is simpler; the contractual element will remain fixed in the future, while the RSS (which sets coal specifications) will be easier to maintain and update. “For SCoTA users, this means less contractual risk, a simpler documentation process, better legal clarity and better credit protection,” says Eoghan Cunningham, CEO of globalCOAL. “SCoTA v8 should foster a more stable trading environment and free up capital, all of which would contribute to greater liquidity in the coal market.” Apart from that, globalCOAL has introduced two new instruments on its commercial screen, which create standardized markets for higher ash, lower CV coal supplied by FOB Australia and FOB Richards Bay, South Africa. Both products are marketed on an NCV basis of 5500 kcal/kg with maximum ash of 23%. Since its launch in 2001, globalCOAL`s Standard Coal Trading Agreement (SCoTA) has revolutionized the international coal trade. SCoTA allows users to buy and sell physical coal loads quickly, efficiently and with limited base risk.

SCoTA combines a unique and accepted set of standard conditions, as well as a set of specifications for coal quality and delivery points for the international sale and purchase of coal. This allows market participants to focus on the concentration of negotiations, which is the most important thing: pricing. To download the contract and use it in bilateral coal sales and purchase transactions, you are first invited to sign the globalCOAL Product Licensing Agreement (PLA).† globalCOAL sCoTA Crash Courses covers everything you need to know to be able to safely participate in the international coal market. Global Coal released its version 8 of SCoTA (“V.8” on September 16, 2011, making major changes to the structure and terms of the SCoTA contract. V.8 will be going live to the screen trade on February 26, 2012, but by then, Global Coal V.8 members will have to perform with other members they wish to deal with.