LONDON, July 17, 2013 /PRNewswire/ -- Platts, the global commodities information provider, today reaffirmed its commitment to aligning its operations to the IOSCO Principles for Oil Price Reporting Agencies (PRA) and to applying those principles to its price reporting in the other commodity markets in which it publishes price assessments that underlie financial derivatives contracts. The announcement followed IOSCO's publication today of its " Principles for Financial Benchmarks," which stated that it "expects the oil PRAs to continue to implement and comply with the PRA principles."
"Platts supports initiatives by legislators and regulators to assure confidence in price benchmarks in the oil markets and other physical commodities markets that we cover. Our broad implementation of the IOSCO PRA Principles for oil and other commodities is evidence of this support," said Larry Neal, Platts president.
IOSCO issued its " Principles for Oil Price Reporting Agencies" in October 2012, stating that the principles "are intended to enhance the quality and integrity of oil price assessments which will enhance the reliability of any oil derivatives contract that references such assessments." The Financial Benchmarks principles IOSCO published today affirm the October 2012 principles for oil price reporting and provide additional principles for benchmarks used in financial markets.
Neal added that, by expanding its implementation of the PRA principles for oil to other commodities, Platts has followed the guidance IOSCO provided when it published the PRA principles in 2012. "Although the PRA principles were developed in the context of PRAs and oil derivatives markets, PRAs are encouraged to implement the principles more generally to any commodity derivatives contract that references a PRA assessed price without regard to the nature of the underlying," IOSCO stated.