SUBSCRIBER NOTE: Platts proposes amending basis for Brent CFD differential assessments to M2 Cash BFOE from M1

In line with developments in the Brent Contract for Difference (Brent CFD) market, S&P Global Platts is proposing to amend the basis month used in the publication of Brent CFD differential assessments, starting from March 1, 2017, to M2 Cash BFOE from M1.

Following the renaming of the underlying Cash BFOE contracts on October 3, 2016, Brent CFDs have been published as a differential to M1 Cash BFOE.

However, Platts understands that, while initial trading is indeed conducted on this basis, the Brent CFD market shifts promptly over the course of the month to trade relative to M2 Cash BFOE.

Platts therefore proposes to publish CFD differential prices as a spread to M2 Cash BFOE rather than M1, and that all indications published based on a different BFOE contract will be normalized back to M2 Cash BFOE.

Given that all Brent CFD indications are already normalized based on the intermonth spreads between different Cash BFOE contracts, there would be no change to the way that Dated Brent or the various forward Dated Brent strips are calculated.

The proposed change is limited entirely to the published differential value for Brent CFDs.

The proposed change affects the following codes: PCAKA00, PCAKC00, PCAKE00, PCAKG00, AAGLU00, AAGLV00, AALCZ00, and AALDA00.

Please send all comments by January 31 to europe_crude@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.