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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 and commodities 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

Market BenefitsNumber of ProvidersMarket ImportanceCash-Settled Futures Benchmark price used by exchanges to settle futures contracts in lieu of physical deliveryExchange PartnersS&P Global Platts data has been licensed to exchanges and other entities for listing, trading, and clearing purposes, including:• CME Group Dubai Mercantile Exchange Intercontinental Exchange Singapore Exchange Tokyo Commodity ExchangeReference Price• Used to negotiate contractsBenchmark Price • Used to settle contracts Used in bilateral contracts that have floating prices linked to a benchmark indexOne or TwoOne 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 deliveryMultiple
S&P Global Platts Price Assessments Buyer Seller $
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 nearly 1,300 exchange-traded, cash-settled futures contracts

Data as of 2/29/2020

Exchange Relationships and Licensing Price Assessments

S&P Global Platts Offices Align with Key Trading Hubs 

London Americas Offices Boston Buenos Aires Denver Houston Mexico City New York Pittsburgh Princeton São Paulo Washington, D.C. EMEA Offices Dubai Johannesburg London Moscow Munich APAC Offices Ahmedabad Beijing Gurgaon/New Delhi Hong Kong Hyderabad Manila Melbourne Shanghai Singapore Thane/Mumbai Tokyo S&P Global Platts Market- on-Close Hub/Platts Office S&P Global Platts Office Exchanges Houston SGX Singapore Exchange Limited Singapore DMEDubai Mercantile Exchange New York

Licensing Physical Spot Market Price Assessments to Exchanges 

S&P Global Platts licenses its physical spot market price assessments to exchanges, allowing the exchanges to create derivatives contracts, which facilitates hedging and other risk-management activities. These exchange relationships also allow S&P Global Platts to further strengthen its regional and global commodity benchmarks.

Global Trading Services Revenue

(dollars in millions)

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Global Trading Services Revenue
61
58
64

As trade flows change, pricing structures are changing from long-term contracts to spot contracts, which require price assessments