CORRECTING and REPLACING Singapore Exchange (SGX) to Use IHS McCloskey Index From IHS Markit for Indonesian 4,200kc GAR Coal Futures

SINGAPORE–(BUSINESS WIRE)–In the third paragraph, William Chin's title should read: "head of
commodities at SGX" (instead of "head of commodities at SGW").

The corrected release reads:

SINGAPORE EXCHANGE (SGX) TO USE IHS MCCLOSKEY INDEX FROM IHS MARKIT
FOR INDONESIAN 4,200kc GAR COAL FUTURES

After rigorous market testing, the Singapore Exchange (SGX) has chosen
the IHS McCloskey Indonesia FOB (4,200kc GAR*) marker from business
information provider IHS Markit (Nasdaq: INFO) as the cash settlement
price for its Indonesian 4,200kc GAR* coal futures contract.

The launch of SGX’s Indonesian 4,200kc GAR* coal futures contract, which
is subject to regulatory approval, will provide a risk management tool
for the most widely traded Indonesian coal grade.

“We are delighted to be working with IHS Market on this new product,”
said William Chin, head of commodities at SGX. “This new thermal coal
contract, for which regulatory approval is pending, is an important
extension of our bulks product suite and will also add depth to the
Baltic Exchange’s existing Indonesian freight routes.”

Accurate, independent and compliant

IHS McCloskey has been publishing the 4,200kc GAR index since 2013. The
index has rapidly gained respect for its ability to track spot market
activity accurately and consequently, is increasingly being adopted as a
benchmark for physical transactions.

The IHS McCloskey Indonesian FOB (4,200kc GAR) marker is believed to be
the only Indonesian coal benchmark to have been, to date, subjected to
an external assurance review to ensure compliance with the principles
for price reporting agencies (PRAs) set out by the International
Organization of Securities Commissions (the IOSCO Principles). The
principles are designed to ensure that a benchmark achieves a level of
rigor and independence that is trusted by leading regulatory bodies and
market participants.

The IOSCO Principles minimise the vulnerability of the assessment
process to factors that could undermine the reliability of a PRA
assessment as an indicator of market values or increase the
susceptibility of a derivatives contract to price distortion.

“Our index has become the ideal tool to manage price risk for Indonesian
low calorific coal,” said John Howland, managing director – coal, at IHS
Markit. “The index is designed to maximise hard trade data, which is one
of the main tenants of the IOSCO principles. This is why it tracks the
spot market so well, and doesn’t lag the market, either.

“We have invested in building a team of market reporters and editors who
are respected and trusted by the industry,” Howland said. “Their
diligence and the team’s commitment to transparency are other key
factors that have supported the success of this index.”

The IHS McCloskey index is a reliable and timely index that covers
Indonesian coal prices, reacting quickly to price fluctuations in the
market. The index follows real trades, bids and offers, driven real time
by physical market activity. Every effort is made to make transactional
data used in index calculation available to clients.

The IHS McCloskey index is increasingly being adopted as a benchmark for
physical transactions in the Indonesian low calorific coal market.
Chinese counterparts, in particular, have been using it on its own as or
as part of a basket of prices in physical contracts.

IHS Markit is a leading global benchmark administrator at the forefront
of changes taking place in the regulation of the various markets in
which it is active. The company has a strong history of engaging with
regulators to help navigate the evolving regulatory landscape.

*GAR – “Gross As Received”

About IHS Markit

IHS Markit (Nasdaq: INFO) is a world leader in critical information,
analytics and solutions for the major industries and markets that drive
economies worldwide. The company delivers next-generation information,
analytics and solutions to customers in business, finance and
government, improving their operational efficiency and providing deep
insights that lead to well-informed, confident decisions. IHS Markit has
more than 50,000 business and government customers, including 80 percent
of the Fortune Global 500 and the world’s leading financial
institutions. Headquartered in London, IHS Markit is committed to
sustainable, profitable growth.

IHS Markit is a registered trademark of IHS Markit Ltd and/or its
affiliates. All other company and product names may be trademarks of
their respective owners © 2018 IHS Markit Ltd. All rights reserved.

Contacts

IHS Markit
Dan Wilinsky, +1 303-868-3807
[email protected]
or
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Team, +1 303-305-8021
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