Platts enables implied spreads on eWindow for Singapore fuel oil derivatives

S&P Global Platts has enabled implied spreads functionality on eWindow for its Market on Close assessment process for FOB Singapore high sulfur fuel oil and marine fuel 0.5%S derivatives from Jan. 22, 2021.

This functionality means that bids and offers for outright price FOB Singapore 380 CST HSFO, 180 CST HSFO and MF 0.5%S derivatives, as well as intermonth and product spreads may result in the generation of additional "implied" bids or offers.

An implied bid or offer represents the value for a specific instrument, as implied by bids and offers for related instruments.

For example, a bid for a December 380 CST HSFO derivative, and an offer for a January 380 CST HSFO derivative, will generate an implied bid for the December/January 380 CST HSFO derivative spread on the Platts eWindow software.

Implied bids and offers on eWindow will not generate headlines on Platts Global Alert, but will be visible via the eWindow communication tool.

In the event that an implied bid or offer is traded, a headline will be generated with the prefix "IMPLIED" and detailing each leg and counterparty of the resultant trades.

An expression of interest to trade an implied bid or offer will result in one or more trades taking place on the related instruments that resulted in the implied bid or offer.

Expressions of interest to trade an implied bid or offer communicated to an editor may not be published if prevailing credit filters do not allow for a "mark interest" to be enacted.

This functionality will be automatically applied to any bids or offers in the FOB Singapore HSFO/MF 0.5% derivative MOC process.

Implied orders would be generated for the following market instruments: HSFO 380CST outrights and inter-month spreads, HSFO 180CST outrights and inter-month spreads, HSFO 180CST/380CST viscosity spreads, Marine Fuel 0.5% outright and inter-month spreads and MF0.5%/HSFO 380CST inter-product spreads.

Further information is available in an FAQ document.

Please send comments and questions to asia_products@spglobal.com and pricegroup@spglobal.com

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.