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

Platts, part of S&P Global Commodity Insights, has updated its methodology around the use of trade information transacted via the CME Group'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, observed block trades are reflected in the final settlement in the same way as trades are executed through the Globex platform, alongside live bids and offers standing at the close. For example, a standing bid at the close would be taken as the minimum value for the settlement, while an offer would be taken as a maximum. Within that range, observed block trades would be reflected in the published value, with the most recent trades considered most relevant.

This decision has followed 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.

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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