Platts proposes changes in minimum volume, timing cut-off for JKM LNG derivatives MOC

S&P Global Platts is proposing changes in the minimum volume and timing cut-off for bids and offers published during the Market on Close (MOC) assessment process for JKM LNG derivatives in Asia, effective April 16, 2020.

Under the proposed changes, Platts would publish bids, offers and expressions of interest to trade for LNG derivatives at a minimum of 25 lots (one lot is equivalent to 10,000 MMBtu), and multiples thereof.

Currently, Platts considers for publication bids and offers for LNG derivatives at a minimum of 5 lots, and multiples thereof.

Furthermore, Platts is proposing to change the timing cut off for submission of new bids and offers to 4:10 pm Singapore time, from the previous 4:00 pm Singapore time.

With the new timing, Platts would continue to publish, bids, offers or expressions of interest to trade before 4:10 pm, but would not publish any new bids or offers submitted after 4:10 pm. Companies would be able to change both price and volume of bids and offers between 4.10 pm Singapore time and 4.29 pm.

Platts would continue to consider for publication bids, offers and expressions of interest to trade for physical LNG cargoes up until 4:00 pm and would not consider for publication bids and offers for physical LNG cargoes after 4:00 pm.

Platts timing and increment guidelines are a key component of its MOC assessment methodology, essential to an orderly and transparent price assessment process: www.spglobal.com

These changes are proposed to reflect the increased volume of trade on the JKM derivatives contracts, which has seen as a consequence a gradual rise in the average lot size of individual trades.

Please send any comments, questions or feedback to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com by March 31, 2020

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.