Platts proposes to rename metals derivatives assessments, database Mo0 until month-end

S&P Global Platts proposes to rename metals derivatives assessments, which are currently referred to as “swaps”, effective January 2, 2020, in response to changes in market terminology and practice.

The underlying assessment methodology for these derivatives would remain unchanged.

Platts is also proposing to database the current month derivatives value until the end of the month, when they would converge with the month-to-date average of the underlying benchmarks.

Platts publishes daily assessments for monthly, quarterly and calendar year iron ore fines and lump, metallurgical coal, scrap and rebar derivatives.

These instruments are traded as a fixed price or in intermonth spreads and they settle off the average value of the underlying assessment price, as published on each day during the month/quarter/year of trade.

Assessments for current month, or Mo0, represent the value of derivatives trading for the full month, rather than balance of the month. For example, on September 14, 2019, the September derivative reflects the underlying benchmark prices, already published between September 1-14, and the expectations for the rest of the month.

The change would affect the following assessments and monthly averages:

These assessments are published on Platts Metals Alert fixed pages 1113, 1120, 1315 and 1323, in the Steel Markets Daily publication and on the Platts Market Centre.

Please send any feedback, comments or questions to PL_Metals_Editorial@spglobal.com and pricegroup@spglobal.com by October 31, 2019.

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.