SUBSCRIBER NOTE: PLATTS OPENS FORMAL REVIEW OF AMERICAS MARKET ON CLOSE TIMING

Following an extended period of public consultation and review, Platts is opening a formal consultation regarding the closing time for its oil, petrochemicals and biofuels-related assessments in the Americas. Currently, all Platts assessments in these markets for the Americas reflect a closing value at 3:15 pm Eastern Time. Platts invites comments, questions and other feedback by February 21, 2016 on the possibility of reflecting a different closing time in these assessments.

RATIONALE FOR POSSIBLE CHANGE: Platts has discussed the potential change of its Americas timestamps at public forums and in discussions across the industry for several years. Platts seeks to reflect the closing time that is most relevant in its physical market assessment, and is considering feedback that physical market activity may typically occur earlier in the day. Additionally, various related markets in the US provide settlement prices earlier in the trading day, typically at 2:30 pm Eastern Time, and these prices are often relevant to physical commodity trading via the use of floating price contracts. Platts is considering reflecting a different closing time in its assessments, and would move all associated activities, including its assessment for the value of relevant futures contracts, to this new time under its proposal.

BACKGROUND: Through the MOC assessment process, Platts seeks to establish and publish the value of markets that prevail at the close of the assessment process itself. Platts has aligned the timestamps reflected in its assessments with what typically is a period of high activity in the markets that Platts observes. Platts believes that aligning its price assessments to typical periods of greater market activity and liquidity provides a robust basis upon which to derive a reliable assessment of market value. By providing clear timestamps for assessments, the Platts MOC process is designed to provide assessments that properly reflect outright and spread values during times of high volatility equally well as in times of modest volatility.

FEEDBACK: Platts invites comments, questions and other feedback on these proposals by February 21, 2016. Please send all comments, feedback and questions to oilgroup@platts.com and pricegroup@platts.com. Specifically, Platts invites views on the merits of moving its Americas timestamps to an earlier period in the US trading day, and the potential timing of such an update. Platts will study all feedback received on these points and any other areas of interest, and provide an update on any possible changes to methodology after the close of the review period. 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.