It was November 1996 when Peter Sceats, former IPE floor broker on the International Petroleum Exchange, and commodities consultant, had 'an idea for coal'. During the first half of 1997 he began a feasibility study, which he funded himself, into whether coal derivatives could work.

"The IPE turned down the idea to build a coal derivatives market, but TFS liked the concept and backed me," Sceats says.

In the fourth quarter of 1997 Sceats launched TFS's coal derivatives business at the Coaltrans