Platts clarifies USGC MTBE differential to NYMEX RBOB MOC post-trade settlement

Platts, part of S&P Global Commodity Insights, would like to clarify that the settlement mechanism for trades reported in the Market on Close assessment process for the US Gulf Coast MTBE differential versus NYMEX RBOB futures should be bilaterally agreed, and in line with how counterparties typically execute trade in the market.

This is in line with practice in other oil markets referencing NYMEX RBOB futures.

Platts would expect such trades to be settled in line with typical market practice, including as an Exchange of Futures for Physical or an alternative method such as a trigger settlement. Such agreements should be bilateral and consistent with previous trading activity. Failure to bilaterally agree on settlement and trade execution would be viewed as non-performance and may lead to a review of an entity's participation status in the MOC process.

Please send any questions, comments, or feedback to petchems@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.