FMCL launches Asian oil forward curve data
The Forward Market Curve Limited (FMCL) has launched the first module of its ForwardMarketCurve (FMC) product – an all-broker methodology for achieving robust and accurate price discovery in forward commodity markets.
The ‘Asian oil module’ offers extensive forward market curve data on Asian oil swaps by averaging assessments made by the region’s most active Asia-swaps brokers. “Industry participants, including traders, end-users, back-office managers and senior management, have increasingly voiced the need for robust, independent, neutral and accurate forward market curve data,” said FMCL in a statement. “Such data is required for dependable mark-to-market activities, as well as for stimulating market confidence and liquidity on the trading side.”Currently, brokerage houses provide in-house data to clients, but no single brokerage covers the entire market, according to FMCL. It added that brokers do not wish to bear the responsibility of having their proprietary market curves emerge as pricing standards, particularly given the challenges inherent in assessing sometimes illiquid markets. “FMCL’s participating brokers have chosen to combine their data because they recognise that even the most knowledgeable and neutral view of the market is not infallible, and that the only safe approach in producing a market standard is averaging multiple informed, neutral views, in a defined, methodical fashion,” said the company.FMCL’s methodology involves averaging the assessments of the region’s leading brokers to provide an assessment of the most actively traded swaps grades and time periods. The data for FMC’s Asia oil module is collected from participating member offices in Singapore, Tokyo and London. Brokers electronically input their assessment of the grades they actively cover in the market. These inputs are then averaged and displayed as daily forward market curves for each grade.
The grades include, but are not limited to: crude oil swaps, such as WTI swaps and Tapis swaps; other crude oil grades, such as Brent futures; and refined products swaps, such as Singapore Naphtha swaps and Singapore jet kero swaps.
To ensure a middle view of the market, high and low broker assessments are discarded before averaging.
The founding members of FMCL include the top 10 oil brokerage houses in Asia-related swaps, including Amerex Petroleum Singapore, Aspen Oil (Broking), Ginga Petroleum, Intercapital Commodity Swaps, Prebon Energy (Singapore), PVM Oil Associates, Radix Energy (Singapore), Spectron Energy (Asia), TFS Energy (S), and Starsupply Tullett Energy, as well as Oil Trade Associates which is the management company for FMCL.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Energy
Chartis Energy50
The latest iteration of Chartis’ Energy50 ranking
Energy trade surveillance solutions 2023: market and vendor landscape
The market for energy trading surveillance solutions, though small, is expanding as specialist vendors emerge, catering to diverse geographies and market specifics. These vendors, which originate from various sectors, contribute further to the market’s…
Achieving net zero with carbon offsets: best practices and what to avoid
A survey by Risk.net and ION Commodities found that firms are wary of using carbon offsets in their net-zero strategies. While this is understandable, given the reputational risk of many offset projects, it is likely to be extremely difficult and more…
Chartis Energy50 2023
The latest iteration of Chartis' Energy50 2023 ranking and report considers the key issues in today’s energy space, and assesses the vendors operating within it
ION Commodities: spotlight on risk management trends
Energy Risk Software Rankings and awards winner’s interview: ION Commodities
Lacima’s models stand the test of major risk events
Lacima’s consistent approach between trading and risk has allowed it to dominate the enterprise risk software analytics and metrics categories for nearly a decade
2021 brings big changes to the carbon market landscape
ZE PowerGroup Inc. explores how newly launched emissions trading systems, recently established task forces, upcoming initiatives and the new US President, Joe Biden, and his administration can further the drive towards tackling the climate crisis
How energy firms can keep up with the pace of digital change
In this webinar, a panel discusses what organisations should keep in mind as they embark on their digitalisation journey, the challenges of which they need to be aware to be aware and what is next on the horizon
Most read
- Top 10 operational risks for 2024
- As FCMs dwindle, regulators fear systemic risk
- Top 10 op risks: AI fears drive cyber risk to record high