Crude Oil Methodology
ICIS continuously develops, reviews and revises its methodologies in consultation with industry participants. Product specifications and trading terms and conditions used aim to reflect typical working practices prevalent in the industry.
ICIS publishes market assessments based on information continuously gathered from market participants about: spot transactions, spot bid and offer levels, contract price negotiations, prices of related commodities, and relevant freight costs.
ICIS includes in its price assessment generation process only information gathered up to the published market close time for each commodity and assessed period.
ICIS does not make retrospective adjustments or changes to price assessments based on information subsequently received.
ICIS regards all arm’s-length transactions which meet its specification criteria as carrying equal weight.
ICIS uses proprietary models where necessary to normalize data to the typical specifications for cargo size and date ranges given for each commodity.
Some ICIS assessments are the product of calculation alone, for example in markets where insufficient market activity takes place to permit price assessment, or where a market habitually itself sets prices according to a formula. Such calculated assessments are noted as such in their detailed methodology specifications.
ICIS endeavours to cross-check all the transaction information it gathers. ICIS will not use information for assessment purposes where such checks call into doubt the accuracy of the original information, or where a transaction appears to have occurred under circumstances that render it non-repeatable or otherwise markedly unusual.
Rationale for Crude Oil methodology
All ICIS published assessments in the Crude Oil market are so-called “market closing” assessments. That is, they are intended to represent the tradable value of a particular crude grade at the time commonly agreed by the marketplace to represent a daily physical market “close”.
A closing value price assessment takes into account: confirmed deals, bids, and offers; market direction; and prevailing relationships with other like grades and related derivative instruments, where relevant, at the time of the close of business for each region.
The value published aims to reflect the real transactable value of a commodity at the point of close. As such it may involve analytical choices between for example "last done" trades and prevailing bids and offers. ICIS takes into account a wide range of market input in making such choices, and reserves the right to exclude from its analysis any price information deemed unreliable or unrepresentative of the market. (See also, Exercise of Judgement).
ICIS has adopted this “closing” methodology based on several decades of market observation and feedback, which have made clear that market relationships (differentials) are of paramount importance to the smooth functioning of crude markets. Only a single-point-in-time snapshot can accurately map these differentials. Other measurement strategies, for example weighted averaging, are vulnerable to random variation in transaction levels and volume, which can give rise to distortions in the resulting differentials.
In addition, the volume of transactions for any given crude oil each day is unknowable in advance, and a volume-dependent methodology is exposed a) to the charge that lower volumes will result in less accurate prices and b) to the possibility of complete failure in the event no transactions occur.
The use of closing trade follows from the natural tendency of commodities markets to show higher levels of activity at the close of the day. In addition, the market’s knowledge that prices are based on the close provides a “virtuous circle” incentive for market participants to trade transparently during the same period of time as their competitors.
Selection of Participants
Only active market participants verifiable by industry are selected to contribute market data to ICIS. New participants are cross referenced by counterparties in the market.
Market Data Verification
ICIS will always make best endeavours to confirm bids, offers and transactions with the relevant party/parties.
Credit terms
Typical credit terms for Crude are 30 days from Bill of Lading date.
ASIA PACIFIC
Specifications
|
Country
|
Grade
|
APIº
|
Sulphur
|
Loading Port
|
Terms
|
Typical Size (bbl)
|
|
Indonesia
|
Cinta
|
32.70
|
0.11
|
Cinta, Java
|
FOB
|
100-200,000
|
|
Australia
|
Cossack
|
48.20
|
0.04
|
Cossack Pioneer FPSO
|
FOB
|
650,000
|
|
Sudan
|
Dar Blend
|
26.40
|
0.12
|
Bashayer Marine Terminal, Red Sea
|
FOB
|
600,000 to 1m
|
|
Indonesia
|
Duri
|
20.29
|
0.21
|
Dumai Terminal
|
FOB
|
200,000
|
|
Russia
|
ESPO Blend
|
34.50
|
0.60
|
Kozmino
|
FOB
|
730,000
|
|
Indonesia
|
Minas
|
33.94
|
0.09
|
Dumai Terminal
|
FOB
|
200,000
|
|
Sudan
|
Nile Blend
|
32.76
|
0.05
|
Bashayer Marine Terminal, Red Sea
|
FOB
|
600-650,000
|
|
Australia
|
NW Shelf Condensate
|
62.30
|
0.01
|
Dampier Terminal
|
FOB
|
650,000
|
|
Malaysia
|
Tapis
|
45.00
|
0.02
|
Kerteh TCOT
|
FOB
|
300-600,000
|
|
Indonesia
|
Widuri
|
33.30
|
0.07
|
Widuri
|
FOB
|
100-200,000
|
The above specifications should be taken only as typical for the grade and not a guarantee of quality.
Asia Pacific crude grades are assessed based on the levels of trades, bids and offers throughout the whole trading day, including the open market trading window, in order to assess the market value for such grades at the close of business.
With the exception of ESPO Blend, such assessments will be based on the prevailing differential to Dated BFOE for each grade applied to the value of the ICIS Asian Dated BFOE assessment.
ICIS assessments for Asia Dated BFOE are established at 5.30 p.m. in Singapore, during British Summer Time (BST) and at 6.30 p.m. when UK switches to Greenwich Mean Time (GMT). The Asian Dated BFOE assessment is calculated by the applying the Dated to forward month BFOE differential established for the North Sea section in the previous session to the value of the relevant forward month BFOE value at the Singapore Close.
In the absence of any recent information regarding trades, bids and offers for any specific grade, ICIS will assess the differential to Asian Dated BFOE using recognised market relationships with other like grades.
ESPO Blend assessments are based on the grade’s prevailing differential to second month Dubai forward contracts as established in line with the Dubai measurement (see Arab Gulf below).
The Assessed Trading Timeframe for Asian grades is based on the full calendar month, two months ahead of the date of publication.
Cargoes loading outside of the Assessed Trading Timeframe may be reflected in the assessment, but prompt loading cargoes offered or sold at a distressed discount will not be taken into consideration.
ARAB GULF
Specifications
|
Country
|
Grade
|
APIº
|
Sulphur
|
Loading Port
|
Terms
|
Typical Cargo Size (bbl)
|
|
Dubai
|
Dubai
|
30.40
|
2.13
|
Fateh
|
FOB
|
500,000
|
|
Oman
|
Oman
|
32.95
|
1.14
|
Mina al Fahal
|
FOB
|
500,000
|
|
Abu Dhabi
|
Murban
|
39.73
|
0.79
|
Jebel Dhanna
|
FOB
|
500,000
|
|
Abu Dhabi
|
L Zakum
|
40.47
|
1.04
|
Das Island
|
FOB
|
500,000
|
|
Abu Dhabi
|
Umm Shaif
|
36.73
|
1.44
|
Das Island
|
FOB
|
500,000
|
|
Qatar
|
Qatar Land
|
41.61
|
1.19
|
Mesaieed
|
FOB
|
500,000
|
|
Qatar
|
Qatar Marine
|
33.80
|
1.85
|
Halul Island
|
FOB
|
500,000
|
The above specifications should be taken only as typical for the grade and not a guarantee of quality.
Arab Gulf crude grades are assessed based on the levels of trades, bids and offers throughout the whole trading day, including the open market trading window, in order to assess the market value for such grades at the close of business.
ICIS assessments for Arab Gulf grades are established at 5.30 p.m. in Singapore, during British Summer Time (BST) and at 6.30 p.m. when UK switches to Greenwich Mean Time (GMT).
In the absence of any recent information regarding trades, bids and offers for any specific grade, ICIS will assess the price using recognised market relationships with other like grades.
The Assessed Trading Timeframe for Dubai, Oman, and other Arab Gulf cargoes is based on the full calendar month, two months ahead of the date of publication.
Cargoes loading outside of the Assessed Trading Timeframe may be reflected in the assessment, but prompt loading cargoes offered or sold at a distressed discount will not be taken into consideration.
Dubai measurement
ICIS price assessments for Dubai cover three forward months, i.e. the front trading month plus two successive forward months, with the front trading month being the calendar month two months ahead of the date of publication. For example, in September, ICIS will assess November, December and January Dubai. The assessed months will roll forward on the 1st of each calendar month, or on the next working day should the 1st fall on a weekend or a holiday.
ICIS assesses the daily value of cash Dubai at 5.30 p.m. in Singapore, during British Summer Time (BST) and at 6.30 p.m. when UK switches to Greenwich Mean Time (GMT).
ICIS marks the currently traded value of ICE Brent futures at the aforementioned times.
ICIS subtracts from the ICE Brent price the prevailing market value for Brent-Dubai EFS (Exchange of Futures for Swaps) as determined by transactions and/or bid and offer levels as reported by market participants and brokers in order to derive a Dubai swap value. The Dubai swap value is equal to the forward Dubai cargo value two months ahead.
ICIS creates a forward curve for Dubai based on intermonth Dubai swap spreads determined by actual market transactions and/or bid and offer levels as reported by market participants and brokers.
The assessment of front month Dubai is based on levels of trades, bids and offers throughout the whole trading day, including during the open market window, in order to assess the market value at the close of business.
Oman
ICIS assessments for Oman crude cover the front trading month plus the succeeding forward month, with the front trading month being the calendar month two months ahead of the date of publication.. (For example, in September, ICIS will assess November and December Oman.) . The assessed months will roll forward on the 1st of each calendar month, or on the next working day should the 1st fall on a weekend or a holiday.
The price of forward Oman months is assessed based on trades, bids and offers, throughout the whole trading day, including activity in the open market trading window. Oman assessments will be based on the grade’s prevailing differential to Dubai added to the value of ICIS Dubai assessment as established in line with the above.
The assessment for November Oman for example is based on November Dubai swaps (Jan Dubai cash) plus the November trade differential to Dubai quotes.
Abu Dhabi and Qatari crude
The price of Abu Dhabi and Qatari grades are assessed based on trades, bids and offers, including activity in the open market trading window in order to determine the market value for such grades at the close of business.
Assessments for November Abu Dhabi and Qatari grades, for example, are based on November Dubai swaps (Jan cash) plus the Official Selling Price (OSP) price differential to Dubai quotes plus November trade differentials plus any expected adjustments ahead of the release of the OSP if deemed accurate enough.
The OSPs for Abu Dhabi and Qatari crude grades are set retroactively and issued at the start of each month. (For example, August Official prices for Abu Dhabi and Qatari crude are issued in early September.)
NORTH SEA
Specifications
|
Country
|
Grade
|
APIº
|
Sulphur
|
Loading Port
|
Terms
|
Typical Cargo Size (bbl)
|
|
UK
|
Brent
|
38.00
|
0.45
|
Sullom Voe
|
FOB
|
600,000
|
|
UK
|
Forties
|
38.7
|
0.79
|
Hound Point
|
FOB
|
600,000
|
|
Norway
|
Oseberg
|
37.8
|
0.27
|
Sture
|
FOB
|
600,000
|
|
Norway
|
Ekofisk
|
38.4
|
0.22
|
Seal Sands
|
FOB
|
600,000
|
|
Norway
|
Statfjord
|
39.5
|
0.22
|
Platform
|
CIF basis Rotterdam
|
855,000
|
|
Norway
|
Asgard
|
47.1
|
0.19
|
Platform
|
CIF basis Rotterdam
|
855,000
|
|
Norway
|
Gullfaks
|
37.5
|
0.22
|
Platform
|
CIF basis Rotterdam
|
855,000
|
|
UK
|
Flotta
|
36.9
|
0.83
|
Flotta
|
FOB
|
650,000
|
The above specifications should be taken only as typical for the grade and not a guarantee of quality.
BFOE measurement
ICIS assesses the daily value of cash and dated BFOE (Brent, Forties, Oseberg, Ekofisk) at 16:30 London time each day as follows:
ICIS marks the currently traded value of ICE Brent futures at exactly 16:30 London time.
ICIS adds to or subtracts from the ICE Brent price the prevailing market value for EFP (Exchange of Futures for Physical) transactions in order to derive a forward cash Brent price. EFP prices are assessed using actual market transactions and/or bid and offer levels as reported by market participants and brokers.
ICIS creates an interpolated forward curve for BFOE Contracts for Difference (CfD) based on the CfD values determined by actual market transactions and/or bid and offer levels as reported by market participants and brokers, and offsets this curve against the forward cash physical price.
ICIS then applies the differential to this CfD curve of the cheapest of the four components of the BFOE pool to derive a Dated BFOE price.
(The BFOE price, by common market consent, is deemed always to be the lowest price among the four key crudes in the pool).
Such differential of the relevant BFOE grade against the forward curve is determined using the level of trades, bids and offers at the close of the 16:00-16:30 open market trading window.
North Sea crudes
North Sea crude grades are assessed based on the levels of trades, bids and offers throughout the whole trading day, including the open market trading window, which closes at 16:30 London time, in order to assess the market value for such grades at the close of business. Such assessments will be based on the prevailing differential to Dated BFOE for each grade applied to the value of ICIS Dated BFOE assessment as established in line with the above. In the absence of any recent information regarding trades, bids and offers for any specific grade, ICIS will assess the differential to Dated BFOE using recognised market relationships with other like grades.
The Assessed Trading Timeframe is 10-25 days forward from the date of publication.
Cargoes loading outside of the Assessed Trading Timeframe may be reflected in the assessment, but prompt loading cargoes offered or sold at a distressed discount will not be taken into consideration.
CIS
Specifications
|
Country
|
Grade
|
APIº
|
Sulphur
|
Loading Port
|
Terms
|
Typical Cargo Size (tonnes)
|
|
Russia
|
URALS NWE
|
32.00
|
1.30
|
Primorsk/Gdansk/Ust-Luga
|
CIF basis Rotterdam
|
100,000
|
|
Russia
|
URALS MED (80)
|
32.00
|
1.30
|
Novorossiysk/Yuzhny
|
CIF basis Augusta
|
80,000
|
|
Russia
|
URALS MED (140)
|
32.00
|
1.30
|
Novorossiysk/Yuzhny
|
CIF basis Augusta
|
140,000
|
|
Azerbaijan
|
AZERI LT
|
34.50
|
0.15
|
Supsa/Ceyhan
|
CIF basis Augusta
|
80,000-140,000
|
|
Kazakhstan
|
CPC BLEND
|
43.50
|
0.55
|
CPC Terminal
|
CIF basis Augusta
|
80,000-140,000
|
|
Kazakhstan
|
KUMKOL
|
40.50
|
0.15
|
Batumi
|
CIF basis Augusta
|
50,000-100,000
|
|
Russia
|
SIBERIAN LIGHT
|
35.50
|
0.60
|
Tuapse
|
CIF basis Augusta
|
75,000
|
The above specifications should be taken only as typical for the grade and not a guarantee of quality.
CIS crude grades are assessed based on the levels of trades, bids and offers throughout the whole trading day, including the open market trading window, which closes at 16:30 London time, in order to assess the market value for such grades at the close of business. Such assessments will be based on the prevailing differential to Dated BFOE for each grade applied to the value of ICIS Dated BFOE assessment as established in line with the above. In the absence of any recent information regarding trades, bids and offers for any specific grade, ICIS will assess the differential to Dated BFOE using recognised market relationships with other like grades.
The Assessed Trading Timeframe is 10-25 days forward from the date of publication.
Cargoes loading outside of the Assessed Trading Timeframe may be reflected in the assessment, prompt loading cargoes offered or sold at a distressed discount will not be taken into consideration.
MEDITERRANEAN
Specifications
|
Country
|
Grade
|
APIº
|
Sulphur
|
Loading Port
|
Terms
|
Typical Cargo size (tonnes)
|
|
Libya
|
BREGA
|
39.80
|
0.20
|
Marsa al Brega
|
FOB
|
80,000
|
|
Libya
|
ES SIDER
|
36.50
|
0.41
|
Es Sider
|
FOB
|
80,000
|
|
Algeria
|
ZARZAITINE
|
42.50
|
0.10
|
La Skhirra
|
FOB
|
60,000-140,000
|
|
Algeria
|
SAHARAN
|
45.50
|
0.10
|
Arzew
|
FOB
|
80,000-140,000
|
|
Syria
|
SYRIAN LT
|
36.85
|
0.80
|
Syria
|
FOB
|
80,000-140,000
|
|
Iran
|
IRAN LT
|
33.75
|
1.40
|
Sidi Kerir
|
FOB
|
80,000
|
|
Iran
|
IRAN HVY
|
31.50
|
1.80
|
Sidi Kerir
|
FOB
|
80,000
|
|
Iraq
|
KIRKUK
|
35.50
|
2.00
|
Ceyhan
|
FOB
|
80,000-140,000
|
The above specifications should be taken only as typical for the grade and not a guarantee of quality.
Mediterranean crude grades are assessed based on the levels of trades, bids and offers throughout the whole trading day, including the open market trading window, which closes at 16:30 London time, in order to assess the market value for such grades at the close of business. Such assessments will be based on the prevailing differential to Dated BFOE for each grade applied to the value of ICIS Dated BFOE assessment as established in line with the above. In the absence of any recent information regarding trades, bids and offers for any specific grade, ICIS will assess the differential to Dated BFOE using recognised market relationships with other like grades.
The Assessed Trading Timeframe is 10-25 days forward from the date of publication.
Cargoes loading outside of the Assessed Trading Timeframe may be reflected in the assessment, but prompt loading cargoes offered or sold at a distressed discount will not be taken into consideration.
WEST AFRICA
Specifications
|
Country
|
Grade
|
APIº
|
Sulphur
|
Loading Port
|
Terms
|
Typical Cargo Size (bbl)
|
|
Nigeria
|
Bonny Light
|
35.0
|
0.15
|
Bonny
|
FOB
|
950,000
|
|
Nigeria
|
Qua Iboe
|
36.0
|
0.1
|
Qua Iboe
|
FOB
|
950,000
|
|
Nigeria
|
Brass River
|
37.3
|
0.17
|
Brass River
|
FOB
|
900,000-950,000
|
|
Nigeria
|
Escravos
|
33.0
|
0.17
|
Escravos
|
FOB
|
950,000
|
|
Nigeria
|
Forcados
|
30.4
|
0.28
|
Forcados
|
FOB
|
950,000-1,000,000
|
|
Nigeria
|
Agbami
|
46.3
|
0.03
|
Agbami FPSO
|
FOB
|
975,000
|
|
Nigeria
|
Erha
|
31.8
|
0.21
|
Erha FPSO
|
FOB
|
950,000
|
|
Angola
|
Cabinda
|
32.6
|
0.12
|
Malongo
|
FOB
|
950,000
|
|
Angola
|
Girassol
|
29.8
|
0.34
|
Offshore Angola
|
FOB
|
1,000,000
|
|
Angola
|
Hungo
|
28.5
|
0.71
|
Kizomba A FPSO
|
FOB
|
950,000
|
|
Angola
|
Kissanje
|
28.2
|
0.44
|
Kizomba B FPSO
|
FOB
|
950,000
|
The above specifications should be taken only as typical for the grade and not a guarantee of quality.
West African crude grades are assessed based on the levels of trades, bids and offers throughout the whole trading day, including the open market trading window, which closes at 16:30 London time, in order to assess the market value for such grades at the close of business. Such assessments will be based on the prevailing differential to Dated BFOE for each grade applied to the value of ICIS Dated BFOE assessment as established in line with the above. In the absence of any recent information regarding trades, bids and offers for any specific grade, ICIS will assess the differential to Dated BFOE using recognised market relationships with other like grades.
The Assessed Trading Timeframe is 45-75 days forward from the date of publication.
Cargoes loading outside of the Assessed Trading Timeframe may be reflected in the assessment, but prompt loading cargoes offered or sold at a distressed discount will not be taken into consideration.
AMERICAS
Specifications
|
USA
|
Grade
|
APIº
|
Sulphur
|
Delivery Point
|
Terms
|
Typical Cargo Size (bbl)
|
|
USA
|
West Texas Intermediate (WTI)
|
38-40
|
0.3
|
Cushing, Oklahoma
|
FIP
|
Pipeline
|
|
USA
|
West Texas Intermediate (WTI)
|
38-40
|
0.3
|
Midland, Texas
|
FIP
|
Pipeline
|
|
USA
|
West Texas Sour (WTS)
|
32.8
|
1.98
|
Midland, Texas
|
FIP
|
Pipeline
|
|
USA
|
Light Louisiana Sweet (LLS)
|
35-40
|
0.4
|
St.James, Louisiana
|
FIP
|
Pipeline
|
|
USA
|
Heavy Louisiana Sweet (HLS)
|
32-33
|
0.3
|
Empire, Lousiana
|
FIP
|
Pipeline
|
|
USA
|
MARS
|
28.9
|
1.8
|
Clovelly, Louisiana
|
FIP
|
Pipeline
|
|
USA
|
THUNDER HORSE
|
33.7
|
0.7
|
Clovelly, Louisiana
|
FIP
|
Pipeline
|
|
USA
|
ANS
|
29-31
|
1.1
|
US West Coast
|
CIF
|
300,000 bbl
|
|
IRAQ
|
BASRAH LT
|
31-35
|
2.0
|
US Gulf
|
CIF
|
500,000 bbl
|
The above specifications should be taken only as typical for the grade and not a guarantee of quality.
The benchmark West Texas Intermediate (WTI) at Cushing, Oklahoma consists of two front months daily assessments rolled forward on the 24th of every month.
A separate assessment for WTI is at Midland, Texas.
The final calculation is based on spot market deal evidence in the form of differentials to the WTI benchmark emerging during the day or during cash market trading ending at 14:15 Houston time. In the absence of deal evidence, bid/offers reported by at least two sources at the end of cash market trading will be used.
The differential for each grade is applied to the benchmark value in order to arrive at the assessed price. US grades are priced against front month WTI.
Basrah Light is priced against the second month WTI.
Exercise of judgement
Situations may arise in which the closing value of a particular instrument is not clear-cut. In these situations, ICIS reporters will are expected to exercise judgement, within the parameters of our published methodology and the following guidelines.
Where one or more transactions occur at the close, and these transactions fall within the prevailing bid-offer spread, the assessment will be transaction-based.
Where the prevailing market level for bids and offers differs from the “last known” transaction, the tradable closing value shall be deemed to lie between the bid and offer level, provided that the bid-offer level is established at least five minutes before the close.
Where a market bid-offer level is unclear, or one-sided, the assessor compares apparent bid-offer levels with values derived mathematically (“spreads”) from other like grades. If these spreads signal a level clearly different from that shown by the bid-offer level, the spread-derived value shall be used.
ICIS market reporters have standing instructions to refer all contentious assessments to supervisors.
“Minimum” data levels
Because of the sometimes thinly-traded nature of some crude oils, ICIS does not have a “minimum” data threshold for its assessment methodologies in these markets. ICIS’ crude oil methodology is designed to function accurately under all market conditions and to make use of parallel data where no direct transaction or bid/offer data is available.
Market Behaviour
In assessing crude oil markets, ICIS takes into consideration arms-length transactions between non-affiliated parties where these transactions can be verified, and have been conducted in an orderly manner.
ICIS excludes from its assessments transactions reported to it where ICIS market reporters have reasonable grounds to doubt that a transaction is representative of typical market behaviour: for example, where a deal is concluded on the basis of a so-called “jump bid” or “jump offer”; where there is evidence that a market participant has disclosed only part of its market activity to ICIS; or where a transaction lies outside the prevailing range of typical market activity for whatever reason.
ICIS records instances of anomalous data and reviews these instances on a regular basis with a view to determining if a pattern exists.
Market Communication
ICIS communicates with a broad range of market participants – traders, brokers, back-office employees, supply managers, operations personnel and company executives – to obtain market information.
ICIS communicates with participants by telephone, email, instant messenger and face to face. All instant messenger and email communication is archived and details of telephone communication are logged and databased.
ICIS does not accept instant messenger communication from unknown parties, and reporters are required to verify a market participant’s identity prior to using IM communication.
ICIS does not regard in any way as binding, attempts by market participant companies to restrict ICIS communication with their employees. ICIS has a duty to its subscribers to obtain the maximum possible amount of market information. ICIS treats all communication from market participants as confidential.
ICIS attempts to cross-check all market data received from a buy or sell-side participant with a participant’s trading counterparty.
Where ICIS has grounds to doubt an item of market data, it may request further evidence that a transaction has taken place, including documentary evidence.
ICIS treats transaction data received from active, reputable brokerages as “confirmed”.
ICIS reporters are bound by a Code of Conduct to report to their superiors any coercive or threatening communication from market participants, or any offers of inducements of any kind intended to influence an assessment.
Where improper communication appears to have taken place, ICIS will communicate in the first instance with senior management at the company or companies involved, and if necessary with relevant market authorities.
ICIS expects the highest standards of propriety from all market participants, and regards all communications from market participants as representative of the views of an individual’s employer.
ICIS is committed to the highest levels of customer service, and has a formal feedback and complaints policy, which can be viewed here http://www.icis.com/about/icis-feedback-policy/.
Changes to Methodology
All markets evolve, and ICIS has a duty to ensure its methodologies for market-reporting evolve in step with markets.
ICIS therefore regularly conducts internal reviews of the appropriateness of its methodologies.
Draft changes are then made public and comment requested from industry participants, with a minimum one-month notice period, except where, exceptionally a force majeure event (natural disaster, war, bankruptcy of a trading exchange etc) makes necessary a shorter notice period.
ICIS is committed to reviewing all comments on proposed methodology changes, but in some cases may find it necessary to alter its methodologies against the wishes of some market participants.