Trading Windows: A View on a Transparent World?

A key feature of the price assessment processes utilised by price reporting agencies (PRAs), such as Platts, Argus and ICIS in the oil and gas markets, is the "Market-on-Close" (MOC) approach. An important part of the MOC process is the role which the trading "window" plays in the formulation of the final prices published by the relevant PRA for each oil benchmark. Although PRAs provide information about their price assessment processes, an appreciation of what that entails is not universal in the market. "Trading in the window" can mean different things depending on the PRA referred to and the reference price in question; each PRA operates its own methodology and these vary according to the market.