Platts enables implied spreads on eWindow for Singapore middle distillate derivatives

S&P Global Platts has enabled implied spreads functionality on eWindow for its Market on Close assessment process for FOB Singapore Gasoil and Jet Fuel derivatives, effective Oct. 26, 2020.

This functionality means that bids and offers for outright price FOB Singapore Gasoil/Jet Fuel derivatives, as well as inter-month and product spreads, also known as the regrade, may result in the generation of an additional "implied" bid or offer.

An implied bid or offer represents the value for a specific instrument, as implied by bids and offers for related instruments.

For example, a bid for a November Gasoil derivative, and an offer for a December Gasoil derivative, will generate an implied bid for the November/December Gasoil derivative spread on the Platts eWindow software.

Implied bids and offers on eWindow will not generate published headlines on Platts Global Alert but will be visible via the eWindow communication tool.

In the event that an implied bid or offer is traded, a headline will be generated with the prefix "IMPLIED" and detailing each leg and counterparty of the resultant trades.

An expression of interest to trade an implied bid or offer will result in one or more trades taking place on the related instruments that resulted in the implied bid or offer.

Expressions of interest to trade an implied bid or offer communicated to an editor may not be published if prevailing credit filters do not allow for a "mark interest" to be enacted.

This functionality will be automatically applied to any bids or offers in the FOB Singapore Gasoil/Jet Fuel derivative MOC process.

For further information, an FAQ document has been made available at: https://www.spglobal.com/platts/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/faq-gasoil-jet-fuel-singapore-derivative.pdf

Please send all feedback, comments and questions to asia_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.