SUBSCRIBER NOTE: Platts proposes clarification on RIN transfers with ethanol trades

S&P Global Platts proposes to clarify the cut-off date for when ethanol trades in the Platts Market on Close assessment process must carry current-year Renewable Identification Numbers.

The proposal follows requests for clarification from market participants.

Platts proposes that RIN transfers that occur for Chicago Argo Terminal ethanol trades, which occurred in the Platts MOC assessment process, must carry current-year RINs if the transfer date is after January 31 to 31 December.

Transfers on or between January 1 to January 31 maintain the seller's option to transfer prior-year RINs or current year RINs.

The transfer date determines what RIN vintage may be attached, not the trade date.

Platts proposes that Rule 11 ethanol trades in the Platts MOC process use the bill of lading date to determine what RIN vintage may be attached.

Bills of lading after January 31 to December 31, must carry current-year RINs. Bills of lading on or between January 1 to January 31 maintain the seller's option to transfer prior-year RINs or current year RINs.

In addition, Platts proposes that trades in the Houston market in the Platts MOC process function similar to Chicago Argo Terminal ethanol trades.

Transfers of ownership of the ethanol after January 31 to December 31 must carry current-year RINs while transfers on or between January 1 to January 31 maintain the seller's option to transfer prior-year RINs or current year RINs.

Platts considers LEAP terms to be standard in the New York Harbor market.

Platts welcomes feedback on standard industry trading practices around RIN transfers on ethanol traded both in and outside of the Platts MOC process.

Platts welcomes all feedback and questions on the proposed assessment through to March 30, 2018.

Please send all questions and feedback to americas_ags@spglobal.com with CC to 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 to the public upon request.