(EnergyAsia, April 2 2012, Monday) — globalCOAL, an electronic and marketplace operator for the industry, said it has released the latest version of its Standard Coal Trading Agreement (SCoTA) together with two new tradable specifications for its online trading system.

The new contract, SCoTA Version 8, has undergone a major overhaul to allow it to function as a master agreement that enables users to net financial obligations in the case of counterparty default, which it describes as a “significant advantage” in today’s difficult credit environment.

The structure of the new contract is also simpler as the body will remain fixed going forward, while the RSSs, which define the coal specifications, will be easier to maintain and update.

“For SCoTA users, it means reduced contract risk, an easier documentation process, improved legal clarity, and enhanced credit protection,” said Eoghan Cunningham, CEO of globalCOAL.

“SCoTA v8 should encourage a more stable trading environment and free up capital – all contributing to better liquidity in the coal market.”

Separately, globalCOAL said it has launched two new instruments on its trading screen, creating standardised markets for higher ash, lower CV coals delivered FOB Australia and FOB Richards Bay, South Africa. Both products are traded on a 5,500 kcal/kg NCV basis, with a maximum ash of 23%.