S&P Global Platts Price Assessments

Growing market importance:  From price reference to price “benchmark” status

S&P Global Platts publishes thousands of daily price assessments and is a key source of pricing intelligence. As the world’s diverse energy and commodity markets continue to evolve, S&P Global Platts innovations in price assessment and information delivery have provided solutions to pricing challenges and helped build S&P Global Platts’ reputation as a leading provider of energy price information. For a given commodity, market participants generally utilize one or two benchmarks, with futures settled against one. It is market participants who choose which price assessments to adopt as benchmarks. S&P Global Platts is independent and does not participate in trading the markets it assesses.

How Market Participants Use Price Assessments

0.0 2.5 5.0 7.5 10.0 Market Benefits Number of Providers Market Importance Cash-Settled Futures Benchmark price used by exchanges to settle futures contracts in lieu of physical delivery Exchange Partners S&P Global Platts data has been licensed to exchanges and other entities for listing, trading, and clearing purposes, including: • CME Group Intercontinental Exchange • LCH.Clearnet London Metals Exchange • NASDAQ OMX Singapore Exchange Tokyo Commodity Exchange Reference Price • Used to negotiate contracts Benchmark Price • Used to settle contracts Used in bilateral contracts that have floating prices linked to a benchmark index One or Two One or Two • Source of pricing intelligence • Informs price trends Enables buyers and sellers to manage risks of temporary price movements Cash settlement reduces transaction costs incurred in physical delivery Multiple

$ S&P Global Assessments Buyer Seller Platts Price

S&P Global Platts price assessments are the basis for billions of dollars of transactions annually in the physical and futures markets 
Buyers, sellers, and traders use price assessments as a basis for pricing spot transactions and term contracts
Risk managers use them to settle contracts and to place a market value on the product(s) they hold
Analysts use them to identify trends and patterns in supply and demand
Governments reference them to formulate royalty payments and retail prices
Exchanges and investors use them to price derivatives contracts

S&P Global Platts benchmark price assessments are the basis for 1,100+ exchange-traded, cash-settled futures contracts* 

*Data as of 12/31/2018

Physical Commodities and a Growing Futures Market

Physical Commodity Market Drivers Include: 

  • Price Volatility 
  • Reinforces the need for price assessments

  • Increasing Global Energy Market 
  • Long-term growth trends are favorable as energy consumption increases
  • Trading in Physical Commodities 
  • As trade flows grow, so does the need for more transparency and pricing information
  • A Growing Futures Market
  • S&P Global Platts benefits as futures contracts are written that use its pricing information

S&P Global Platts Offices Align to Key Trading Hubs