Platts to introduce operational tolerance dynamic pricing eWindow functionality for CIF NWE jet cargoes, effective June 5

Platts, part of S&P Global Commodity Insights, will introduce new operational tolerance dynamic pricing functionality on its eWindow communication tool for the Platts Market on Close assessment process for CIF Northwest European jet fuel cargoes, effective June 5, 2023.

This updates an earlier subscriber note, please see: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/012423-platts-to-introduce-operational-tolerance-dynamic-pricing-ewindow-functionality-for-cif-nwe-jet-cargoes

With this addition, participants in the MOC process will be able to select the operational tolerance pricing basis and change the corresponding pricing differential when submitting and controlling bids and offers for CIF NWE jet cargoes for publication directly through the eWindow communication tool, or do so through an editor who would then publish the bids and offers using the software.

Prior to the implementation of this new technology the pricing basis for the operational tolerance and corresponding pricing differential was stated in the Terms, Quality and Conditions attached to a cargo bid or offer.

In line with existing methodology, Platts reflects bids, offers and trades that limit a counterparty's price exposure to operational tolerance.

Operational tolerance in CIF cargo markets is typically limited to plus or minus 10% of the transacted size for cargoes.

When pricing on a floating basis, Platts reflects CIF cargoes where the operational tolerance prices after the completion of discharge (COD).

Platts wishes to clarify to subscribers that main volume pricing and operational tolerance pricing are expected to be within a reasonable range, while accounting for market structure, in order to be reflected in the Platts CIF European distillate cargo MOC.

Platts may review for publication instances where the two pricing elements are deemed to diverge significantly.

S&P Global has established clearly defined guidelines and standards of price incrementability which apply when publishing bids and offers in the MOC process in order to ensure an orderly and transparent price assessment process.

For further details of these guidelines, please see: https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/oil/oil-timing-and-increment-guidelines

Platts is available to demonstrate this new functionality ahead of its June 5, 2023, launch.

A demonstration can be arranged by emailing ewindow_lon@spglobal.com.

Please send any feedback, questions or comments to europe_products@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.