Platts updates methodology to reflect block trades in CME CBL Settlement assessments

Platts, part of S&P Global Commodity Insights, is updating its methodology around the use of trade information for transactions via the CME's Globex platform and block trades via CME's Globex platform, effective Sept. 27, 2022 following the expiration of the September GEO, N-GEO, C-GEO and C-GEO Trailing contracts.

With this update, Platts considers block trades to be of equal weight to trades transacted directly on CME's Globex platform. Under its previous methodology, Platts gave priority to live exchange data in all instances. However, because price evolves over time, Platts continues 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 decision follows on from market feedback regarding the importance of block trades to the CME CBL Futures contracts.

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

Platts does not consider block trades as part of the trading volume necessary to meet the threshold within the last 10 minutes ahead of the 2:30 pm ET settlement.

Please send any feedback to Platts_Carbon@spglobal.com and pricegroup@spglobal.com.

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Platts will consider all comments received and will make comments not marked as confidential available upon request.