LONDON – ICE exchange, home of Brent oil futures trading, has put pressure on pricing agency Platts to postpone its physical Brent market reform, saying the market needs more time to consult and adjust the value of derivatives in line with the changes.


S&P Global Platts has this week decided to include U.S. crude West Texas Intermediate (WTI) Midland in its dated Brent oil price assessment, the first crude from outside the North Sea to be added to the global benchmark.

WTI will be reflected in dated Brent from July 2022 cargo deliveries, Platts said adding that the mechanism will be determined later during consultations with market participants.

In a previously unpublished letter, dated Feb. 12 – days before the Platts announcement, ICE said it was concerned by the timeline.

“ICE does not have the luxury of time,” it said in excerpts of a letter, seen by Reuters.

The exchange said it must consult with the market and provide notice of changes at least nine months before the changes come into effect.

Consultations usually take several months and will take place after Platts has held its own consultations with the industry.

“The suggested timeline doesn’t in our opinion allow sufficient time to iron out the finer details of the proposal and properly consult prior to the required nine-month notice period,” ICE said.

Both Platts and ICE declined to comment.


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