Platts to reflect Cash BFOE partial contracts which settle on fallback day

Following a period of research, S&P Global Platts will reflect Cash BFOE partial contracts which settle on "fallback day", effective from the July Cash BFOE contract.

This follows a proposal note, published February 21, 2020 and available here:

http://plts.co/ibld30qscvf

The proposal was the result of a broad consultation around Cash BFOE, detailed in a subscriber note published December 4, 2019 and available here:

http://plts.co/kWu330qscvJ

Fallback day typically refers to the day before the expiry of the ICE Brent futures contract.

Currently, Platts assessments reflect Cash BFOE partial contracts where any unconverged contracts are financially settled using the Month 1 assessment on the final working day of the calendar month.

Platts understands that the majority of unconverged contracts are typically settled on fallback day, using a range of settlement procedures.

As a result, Platts will only publish bids and offers for full 600,000 barrel Cash BFOE cargoes or spreads for M1 on fallback day and expiry day, effective from the settlement period for the July Cash BFOE contract.

Please send all comments to europe_crude@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.