S&P Global Platts has clarified the language in its methodology and specification guide in order to better reflect the terms of physical and financial settlement of the Cash BFOE contract.
The guide now reads as follows:
"Bids and offers for Cash BFOE published during the Platts MOC reflect transactions of 100,000 barrel partials. If a single buyer and a single seller transact six partials of 100,000 barrels with each other, the transactions may converge into one physical Cash BFOE cargo of 600,000 barrels. If any position between two counterparties amounts to less than 600,000 barrels after all convergences have been settled, the position is understood to be financially settled, unless both counterparties mutually agree to deliver/take delivery of a smaller cargo. Partial contracts are financially settled using the Platts assessment published on the final working day of the calendar month for the relevant contract month -- the M1 assessment."
This change to the language in the methodology and specification guide does not reflect a change in Platts methodology or process.
The Methodology and Specification Guide is available here: https://www.spglobal.com/platts/plattscontent/_assets/_files/en/our-methodology/methodology-specifications/emea-crude-methodology.pdf
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