Subscriber note: Booking out Platts trades concluded via the MOC

Platts would like to remind market participants that booking out trades done during the Platts Market-on-Close assessment process is acceptable under exceptional circumstances. A stressed party may request to book out a trade, but its counterparty is under no obligation to accept such request. In those exceptional cases where both counterparties agree to book out a trade, Platts expects the original spirit of the contract to be fulfilled where the non-performing party offers to buy/sell back the position and compensates the affected party. In almost all circumstances, the adjustment is not and should not be due to a flat price movement, but should be to include parameters such as backwardation, shipping costs and the inconvenience for the buyer or seller expecting a normal transaction. Such adjustments should be fair and in line with market practice, and should be reciprocal in the event that the inverse situation occurs in the future. Book outs are subject to editorial review to ensure market practices and overall fairness in the transaction have been followed. Platts review may include proposals/arrangements to protect the integrity of its assessment process. Please send questions and comments to asia_products@platts.com and pricegroup@platts.com.