Platts proposes to reflect block trades in CME CBL settlement assessments

Platts, part of S&P Global Commodity Insights, is proposing to update its methodology around the use of trade information both transacted via the CME's Globex platform and block trades via CME's Globex platform, effective Sept. 27 following the expiration of the September GEO, N-GEO, C-GEO and C-GEO trailing contracts.

Under this proposal, Platts would consider block trades to be of equal weight to trades transacted directly on CME's Globex platform. Under its current methodology, Platts gives priority to live exchange data on all instances. However, because price evolves over time, Platts would continue to use live bids and offers on CME Globex to determine the continued relevance of any traded information at the time of the 2:30 pm ET settlement.

This proposal follows market feedback regarding the importance of block trades to the CME CBL futures contracts.

Platts would continue to consider bids, offers and transactions for both outright contracts and contract spreads that have demonstrated market value through a systematic, ordered improvement, and would typically assess above outstanding bids and below outstanding offers.

Under this proposal, Platts would not consider block trades as part of the trading volume necessary to meet the threshold within the last 10 minutes before the 2:30 pm ET settlement.

Please send any feedback to Platts_Carbon@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.