SUBSCRIBER NOTE: Platts opens consultation on proposed changes to TSI Coking Coal indices

In response to recent market feedback, S&P Global Platts is opening a formal consultation regarding possible methodology changes to The Steel Index Coking Coal indices to be implemented on November 1, 2017. Platts invites feedback on these proposals by July 28, 2017.

The consultation relates to three proposed changes that aim to further enhance the indices' ability to track market value in times of low liquidity, and to increase the transparency of these indices.

Introduction of Rationales The first proposed change would be the introduction of comprehensive daily index rationales for its PHCC FOB Australia index, which would clearly explain what information is used for the calculation of the index.

In order to do so, TSI would have to discontinue receiving submissions pursuant to the existing Data Provider agreements for companies submitting to TSI's Coking Coal indices.

Data Providers would maintain access to the TSI data submissions portal and would be able to continue submitting transactional data for the Coking Coal indices.

Market participants who currently do not submit data via the TSI submissions portal would still be welcome to approach members of the TSI Coking Coal team to start doing so.

Indicative Bids and Offers Due to the potential for market-disruptive events in the FOB Australia market, which lead to low spot liquidity, TSI proposes to include indicative bids and offers, should the availability of firm information such as transactions and firm bids and offers be insufficient.

These indicative bids and offers would be used in instances where firm bid, offer and trade information were not available, but their inclusion would ensure continued robust index performance during periods of extreme illiquidity.

Loading Window In light of logistical practicalities and market standards observed in the FOB Australia coking coal market, TSI proposes to change the loading window under evaluation to 7-60 days from the date of publication from the current within 60 days of publication.

Please submit any feedback, comments or questions about this proposal to pricemethodology@spglobal.com by July 28, 2017. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.