LNG, Natural Gas
July 17, 2023
Platts changes timing, increment guidelines for Global LNG MOC from July 17
For the APAC MOC, Platts allows a maximum price move of 5 cents/MMBtu per 30 seconds for bids and offers submitted through the Platts Editorial Window, or eWindow, communication tool and through a Platts editor manually for the Asia LNG physical MOC, and a maximum price move of 10 cents/MMBtu per 20 seconds for bids and offers submitted through the eWindow communication tool and 10 cents/MMBtu per 30 seconds for bids and offers submitted through a Platts editor manually for the Asia LNG derivatives MOC.
Platts has also changed the final state for the Asia LNG physical MOC to start from 16:29:30 Singapore time for both the eWindow and manual MOC environments, and the final state for the Asia LNG derivatives MOC to start from 16:29:30 for the manual MOC environment.
Platts has removed the final state from the Asia LNG derivatives MOC for the eWindow MOC environment.
The maximum time allowed for participants to repeat a bid or an offer for Asia LNG physical MOC has been shortened to 30 seconds from the current guideline of 60 seconds following a trade, while the maximum time allowed for participants to repeat a bid or offer for Asia LNG derivatives MOC following a trade has been shortened to 20 seconds from 30 seconds currently.
Following a trade, an extension of the MOC will be triggered by a rebid or reoffer between 16:29:30 and 16:30:00 Singapore time for Asia LNG physical, and between 16:29:40 and 16:30:00 Singapore time for Asia LNG derivatives.
An extension in the Asia LNG derivatives MOC will be triggered if a price is changed in the last 20 seconds, or between 16:29:40 and 16:30:00, in the eWindow MOC environment.
The extension period remains unchanged, lasting for one minute until 16:31:00 Singapore time for both Asia LNG physical and derivatives in order to adequately test that bid or offer.
Platts first announced to change these timing and increment guidelines June 16 via a subscriber note available here:
https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/061623-platts-to-change-timing-and-increment-guidelines-for-global-lng-moc-from-july-17
Under Platts previous timing and increment guidelines, bids and offers for Asia LNG physical submitted directly through the eWindow tool and through a Platts editor can improve by up to 5 cents/MMBtu per 60 seconds, with final state at 16:29:00 Singapore time, whereas bids and offers for Asia LNG derivatives submitted directly through the eWindow tool can improve by up to 5 cents/MMBtu per 30 seconds, and through a Platts editor can improve by up to 5 cents/MMBtu per 60 seconds, in the Asia LNG derivatives MOC, with the final state at 16:29:30 Singapore time.
The increments had been amended to a maximum of 20 cents/MMBtu every 30 seconds for Asia LNG derivatives since March 23, 2022, in a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/032322-asia-lng-platts-market-on-close-incrementability-changes
and to a maximum of 5 cents/MMBtu every 30 seconds for Asia LNG physical since June 30, 2022, in a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/063022-asia-lng-physical-platts-market-on-close-incrementability-changes
until further notice, to reflect the current volatility in the market due to European gas market price movements.
For the Atlantic MOC, Platts allows a maximum price move of 5 cents/MMBtu per 30 seconds for bids and offers submitted through the eWindow communication tool and through a Platts editor for the Atlantic LNG physical MOC.
The maximum price move remains the same at 10 cents/MMBtu per 60 seconds for bids and offers submitted through a Platts editor for the Atlantic LNG derivatives MOC.
Platts has also changed the final state for the Atlantic LNG physical MOC to start from 16:29:30 London time for both the eWindow and manual MOC environments.
The maximum time allowed for participants to repeat a bid or an offer for Atlantic LNG physical has been shortened to 30 seconds from the current guideline of 60 seconds following a trade.
Following a trade, an extension of the MOC will be triggered by a rebid or reoffer between 16:29:30 and 16:30:00 London time, instead of between 16:28:00 and 16:30:00 London time, for Atlantic LNG physical.
The duration of the extension period has been shortened from two minutes to one minute, until 16:31:00 London time, for Atlantic LNG physical in order to adequately test that bid or offer.
For the Atlantic LNG derivatives MOC, a bid or offer is published by a Platts editor manually currently. The timing and increment guidelines for the Atlantic LNG derivatives MOC remain unchanged.
The changes apply to bids and offers submitted by market participants for the Platts JKM, WIM, MEM, NWE, MED and GCM assessments directly through the eWindow communication tool and through a Platts editor who will then publish bids and offers using the software.
The following table summarizes the changes on eWindow:
|
Product |
Environment |
Repeatability |
New Repeatability |
Final State |
New Final State |
Repeat/Change of an order which triggers extension of the window (extension trigger period) |
New Repeat/Change of an order which triggers extension of the window (extension trigger period) |
Period of testing the repeatability of an order repeated/changed near the close (Extension state) |
New period of testing the repeatability of an order repeated/changed near the close (Extension state) |
Max Increment/Frequency |
Previous Temporary Max Increment/Frequency |
New Max Increment/Frequency |
|
APAC LNG Physical |
eWindow/Window |
Within 60 seconds |
Within 30 seconds |
16:29:00:000 |
16:29:30:000 |
16:29:00:000 to 16:30:00:000 |
16:29:30:000 to 16:30:00:000 |
16:30:01:000 to 16:31:00:999 |
16:30:01:000 to 16:31:00:999 |
5 c/60 s |
5 c/30 s |
5 c/30 s |
|
APAC LNG Derivatives |
eWindow |
Within 30 seconds |
Within 20 seconds |
16:29:30:000 |
N/A |
16:29:30:000 to 16:30:00:000 |
16:29:40:000 to 16:30:00:000 |
16:30:01:000 to 16:31:00:999 |
16:30:01:000 to 16:31:00:999 |
5 c/30 s |
20 c/30 s |
10 c/20 s |
|
Atlantic LNG Physical |
eWindow/Window |
Within 60 seconds |
Within 30 seconds |
16:28:00:000 |
16:29:30:000 |
16:28:00:000 to 16:30:00:000 |
16:29:30:000 to 16:30:00:000 |
16:30:01:000 to 16:32:00:999 |
16:30:01:000 to 16:31:00:999 |
5 c/120 s |
5 c/120 s |
5 c/30 s |
Platts has established clearly defined timing and increment guidelines that apply when publishing bids and offers in the MOC, in order to ensure an orderly and transparent price assessment process.
Guidelines for the publication of bids and offers in the MOC are available in the Platts LNG Timing and Increment Guide, available here: https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/lng/lng-timing-and-increment-guidelines
Please send all comments, feedback and questions to LNGeditorialteam@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.
Platts will consider all comments received and will make comments not marked as confidential available upon request.