False parallels are often drawn between oil and energy market price reporting and the generation of the British Bankers Association's London Interbank Offered Rate (LIBOR) indices. There are no similarities.

• Important Distinctions Between LIBOR Rate Setting and Oil and Energy Market Price Reporting - November 19, 2014
• July 13, 2012 FT: Published Letter to the Editor from Platts President Larry Neal on Distinctions Between LIBOR and Oil Pricing
• July 16, 2012 The Daily Telegraph: Submitted Letter to the Editor from Platts President Larry Neal on Misstatements on LIBOR and Oil Pricing

On September 17, 2015 the International Organization of Securities Commissions (IOSCO) announced that the price reporting agencies (PRAs) have made the IOSCO Oil PRA Principles an "integral part" of their price assessment practices and that IOSCO saw no need to continue its annual review of the Principles' implementation. IOSCO said: "Given the progress that has been evidenced to date, the commitment by the four main PRAs to continue adhering to the PRA Principles, and to undergo independent external assurance reviews, IOSCO, the IEA, IEF and OPEC do not believe that further annual implementation reviews will be necessary at this time". The full report can be found by clicking this link. Platts remains committed to ensuring its price assessment processes continue to fully align with IOSCO's PRA Principles across all commodities and will continue to retain an independent accountancy firm to conduct voluntary reasonable assurance reviews of its alignment to the PRA Principles. In 2013, Platts was the first PRA to align with the Oil PRA Principles and voluntarily undergo a reasonable assurance review. Additionally, in 2014 Platts was the first PRA to voluntarily extend the Principles to its price assessment processes in the power and gas, agriculture, metals and petrochemicals sectors.

As part of its commitment to transparency and integrity, Platts has engaged Ernst & Young (EY) to conduct annual independent assurance reviews of its alignment with the IOSCO Principles for Oil Price Reporting Agencies (PRA Principles). The PRA Principles, which set standards for governance and control systems, were introduced by the International Organization of Securities Commissions (IOSCO) and endorsed by the G20 in October 2012. In its 2013 and 2014 reviews, EY confirmed that Platts' strong governance structure and operational processes were aligned with IOSCO's PRA Principles in all material respects with regard to its oil benchmarks. EY's 2013 and 2014 reviews were reasonable assurance reviews - the highest standard for this type of review and the standard supported by IOSCO in its Sept. 9 initial report on the implementation of the PRA Principles. For 2014, the reasonable assurance review included a comprehensive review of Platts' documentation of its processes for price assessments used for oil and also tested the operating effectiveness of these processes in Houston, London and Singapore for the twelve-month period from 1 October 2013 to 30 September 2014. Click here to access the Ernst & Young report. In 2013, Platts announced it would voluntarily apply the IOSCO PRA Principles to its non-oil commodities of power, petrochemicals, metals and agriculture and similarly, conduct annual independent assurance reviews of its alignment to the Principles. In 2014, like in oil, Platts engaged Ernst & Young (EY) to conduct an annual independent assurance review of its non-oil alignment to the Principles. The review was completed in February 2015 and, included a comprehensive review of Platts' documentation of its processes for price assessments used for power, petrochemicals, metals and agriculture in Houston, London and Singapore as at 28th February 2015. As with oil, the reasonable assurance review for non-oil demonstrated Platts' alignment to the PRA Principles.

• Read Platts' press release: "Independent Assurance Review Confirms Platts Aligns Non-Oil Commodities With IOSCO Principles for Oil Price Reporting Agencies"

On June 19, 2013, The Wall Street Journal published a front-page article, "Traders Try to Game Platts Oil-Price Benchmarks,” which contained quotes from mostly unnamed traders who claimed that they profited by reporting above or below market prices in Platts' price assessment process. The article falsely implied that Platts' price assessment processes had been compromised. Here are Platts' responses:

• Press Release: Detailed Review by Platts Shows Rixo Trading Did Not Skew Platts Price Assessment Process
• Platts Editorial Analysis: Rixo Trading Did Not Skew Price Assessment Process
• Letter to the Editor of The Wall Street Journal (Published online and in print editions)
• Why the Rotterdam Trader's Trades Wouldn't Influence Platts' Prices
• The Facts about the Singapore Diesel Market in 2006
• How The Platts Market-On-Close Price Assessment Process Guards Against Manipulation

Platts is an independent information and services provider. Our role as an impartial publisher is to observe, analyze and report on the markets. We have no stake in the value of the commodities we cover. Participation in our news gathering and price assessment processes is voluntary, as is the use of our information. Our aim is to protect the integrity of our price assessment processes and to publish information that is useful to our customers and helps the markets operate with greater transparency and efficiency.

• About Platts

METHODOLOGY REVIEW

At a minimum, S&P Global Platts reviews all methodologies annually to ensure they continue to reflect the physical markets under assessment. Platts regularly assesses the relevance of methodologies through continuous contact with the market. Feedback on methodologies is always welcomed by Platts. If you have any comments, please contact the Price Group. Please indicate if you wish your comments to remain confidential.

REVIEW & APPROVAL PROCESS

Platts follows a clearly defined process for introducing or making changes to its methodologies. This process is based on full transparency and communication with industry stakeholders aimed at gaining market acceptance for any proposed introduction or changes to methodology.

Once Platts identifies the need for a methodology change:

• Platts assigns an individual as owner of the entire change process. This individual is accountable for ensuring all processes are correctly followed.
• Platts publishes a proposal in the form of a Subscriber Note and invites feedback over a specified time period. The timelines may vary depending on the nature of the change.
• After feedback is received and collated, Platts considers the information, makes a decision and publishes a Subscriber Note. If Platts decides to proceed with the change, Platts provides additional opportunity for feedback before the change is implemented.
• Any written feedback received by Platts in relation to a methodology consultation that has not been designated as confidential will be made available to users upon request.
• Any written feedback on methodologies that has not been marked as confidential can be made available to users upon request

Platts categorizes methodology changes into types. (See table below.) All methodology changes are formally communicated to the market through Subscriber Notes.

Factors, including external factors beyond the control of Platts, may necessitate changes to, or the cessation of, the benchmark. Such factors may include changes in physical market conditions that could materially impact the parameters of an assessment.

Platts does not sponsor, endorse or market any specific financial product or provide investment advice. Users of Platts benchmarks should nevertheless be advised that changes to, or the cessation of, the benchmark may have an impact upon financial instruments that reference the benchmark and users should contact the relevant product provider or fund manager for more information.

Platts is committed to providing advance notice in a clear time frame that gives users sufficient opportunity to analyze and comment on the potential impact of such proposed changes. Time frames vary depending on Platts analysis of the overall circumstances of a particular change.

Methodology changes that materially alter an assessment and require an update to the methodology specification are preceded by extensive bilateral discussions with market stakeholders. Routine changes, such as seasonal quality or pipeline cycle changes, time-rolling assessments, or clarifications, generally do not materially alter an assessment.

Platts may hold open public forums in which material methodology changes and feedback are presented, and at which further feedback may be given.

When a Platts assessment ceases to be relevant to the marketplace, Platts generally will provide at least six months' notice of its intention to discontinue an assessment, although this timeline can be shortened to three months when Platts expects the market impact to be negligible. If an unforeseen event causes a severe disruption in a particular market, the timeline for discontinuing an assessment (sometimes on a temporary basis) may be shortened even further.

On occasion, Platts may need to respond urgently to changing market conditions, perhaps precipitated or warranted by a serious event or market situation. Such changes are also communicated in a Subscriber Note setting out what the issue is and what changes are to be made.

If you wish to comment on a proposed change, please send an email to the address listed in the relevant Subscriber Note and clearly indicate whether you wish your comments to remain confidential.

The quality of data inputs – not the quantity – is of primary importance in developing a price assessment that represents true market value. To maintain the integrity of our price assessments, we employ structured processes underpinned by rigorous, well-defined guidelines which are publically available at S&P Global Platts Our Methodology.

• S&P Global Platts Pricing Methodologies
• S&P Global Platts Market on Close
• S&P Global Platts Survey
• S&P Global Platts Index

Transparency is of paramount importance to price discovery, particularly given the complexity and non-standardized nature of physical oil markets. For Platts, transparency means full disclosure of our methodologies and of the data underlying our price assessments. The transparency of Platts' Market-On-Close oil price assessment process, including identification by company name of all submitted bids, offers and transactions, is unparalleled.

• Transparency and Integrity in Global Oil Markets Pricing