SUBSCRIBER NOTE: Platts changes MOC timings for Chicago pipeline gasoline, ULSD, jet

S&P Global Platts has changed the timing and increment guidelines for the gasoline, jet fuel and ULSD Chicago pipeline Market on Close assessment process, with effect from October 25, 2019.

The change enables more efficient price communication during the MOC process that is used to assess these benchmark prices.

The maximum price increment for firm bids and offers during the MOC process for these markets has changed to $0.0025/gal every 30 seconds, from $0.0025/gal every 60 seconds currently; the reaction time to repeat an order following a trade has changed to 30 seconds, from 60 seconds currently; and the cutoff time for price changes has changed to 1:29:00.000 pm CT, from 1:28:00:00 pm CT previously.

In addition, any repeat of a bid or offer in the last 20 seconds prior to the 1:30 pm CT market close would trigger an extension state that would last one minute after the 1:30 pm CT close. Currently, any repeat of a firm bid or offer in the last 30 seconds prior to the 1:30 pm CT market close triggers an extension that lasts two minutes.

The changes coincide with the launch of Platts Editorial Window instruments for Wolverine, West Shore and Badger pipelines in the gasoline, jet fuel and ULSD MOC process for the Chicago pipeline assessment. It brings the methodology in line with similar timings and incrementability standards in other US refined product markets that are facilitated by the eWindow tool.

Platts has established clearly defined timing guidelines and standards of incrementability that apply when publishing firm bids and offers in the MOC process, in order to ensure an orderly and transparent price assessment process.

Please send any feedback or questions to americas_products@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.