Tullett Prebon Information, which provides real time information for over the counter (OTC) markets is to distribute data on biofuel, ethanol and palm oil, following an exclusive deal with SCB Group.
TPI, which is part of interbroker dealer Tullett Prebon, said the distribution agreement would bring further transparency to what are growing global markets for non fossil fuels.
It also enhances Tullett’s existing energy brokerage business, and means the OTC markets in these commodities can be offered wholesale interdealer pricing data.
“Historically, these markets relied primarily upon exchange, futures-based information. This data will help corporates, banks and trading companies to hedge, manage risk and mark-to-market both physical and paper-based positions in these markets,” Tullett added.
SCB Group is a biofuel broker. The data it will source for Tullett includes supply assessment and forward curve pricing data relating to instruments across three geographic regions
End of day pricing data will include:
- Europe: Non Red Biodiesel (FAME -20/-15/0/+5/+10 cfpp, RME -12, SME -3, PME +12); Red Biodiesel (FAME -10/0 cfpp, RME -12, SME -3, PME +12); Ethanol (T2 ARA).
- US: Biofuels (SME & TME for Houston & New York Harbour); Ethanol (New York Harbour barges, Argo ITT – Chicago, FOB Mid West, Rule 11 TWS – Chicago, Rule 11 NWS – Chicago); RINS (D4 / D5 / D6).
- Asia: Crude Palm Oil.
Both parties envisage growing demand for such price data as factors such as concerns over energy security, climate change, and regulation, push such markets into more mainstream investing. They cite figures suggesting the automotive biofuel market will grow from around $94bn in 2013 to around $149bn by 2018.
Frank Desmond, CEO at Tullett Prebon Information, commented: “We have a long history of providing accurate, high-quality, and independent pricing data to the world’s energy markets. The push for sustainable energy is transforming the industry, placing biofuels at the centre of a fast emerging market. We have always looked to innovate and provide clients with the highest quality data where none was available before. Providing transparent data will allow our clients to navigate the complexities of the biofuels market more effectively, and also support the wider growth of the industry.”
Kevin McGeeney, CEO of SCB Group said: “As one of the world’s leading biofuel brokers, we are confident that the reliability and breadth of our data is unparalleled. Now, thanks to the deal with TPI, this high quality information can be made available across the planet, to the advantage of market participants.”