The clearing of coal options by LCH.Clearnet is running at record levels, as high demand for coal in Asian countries and price volatility pushes up demand for hedging products.

Coal option contracts were launched in March last year and are proving increasingly popular, as investors try to manage risk in coal production in the wake of recent price volatility. The options allow hedge funds, banks and market participants to hedge risk or gain exposure to a market amid the recent fluctuation in prices.