Platts confirms its commitment to tracking transactions reported in the Market on Close assessment process. As such, it tracked reported physical deals by Hin Leong Trading Pte Ltd and Zenrock Commodities Trading Pte Ltd from March 10, 2020 to April 8, 2020, following widely reported news of financial issues https://www.spglobal.com/platts/en/market-insights/latest-news/oil/050620-infographic-hin-leong-collapse-sends-shockwaves-through-oil-trading-industryhttps://www.spglobal.com/platts/en/market-insights/latest-news/oil/050820-hsbc-alleges-singapore-trader-zenrock-conducted-fraudulent-oil-trades-court-filing.
Of the 87 reported physical deals deals by Hin Leong, seven were booked out, 26 were physically loaded and 54 were cancelled, including a gasoil trade published March 19 with Zenrock.
As outlined in its methodology, Platts may track all aspects of performance on trades reported during its MOC assessment process. Platts not only focuses on the performance of the transaction at the time of trade, but also on any significant issues stemming from such trades, including logistics and eventual delivery.
Post-deal tracking enables Platts to determine the actual performance of the participants in the trade and the validity of their inputs. Platts may publish confirmation of trade performance information.
Booking out trades done during the MOC assessment process is acceptable under exceptional circumstances. A stressed party may request to book out a trade, but its counterparty is under no obligation to accept such request. In those exceptional cases where both counterparties agree to book out a trade, Platts expects the original spirit of the contract to be fulfilled where the non-performing party offers to buy/sell back the position and compensates the affected party.
Platts welcomes all relevant feedback regarding MOC participation. Platts considers bids, offers and transactions by all credible and creditworthy parties in its assessment processes.