Exclusive deal to redistribute SCB Group biofuel, ethanol, and palm oil market data
Tullett Prebon Information (TPI), a leading provider of independent real-time price information from the global ‘over the counter’ (OTC) financial and commodity markets, has signed a data distribution agreement with SCB Group. The deal gives TPI exclusive worldwide distribution rights for SCB Group biofuel, ethanol, and palm oil data. By providing market participants with access to accurate, reliable, and independent data, the partnership will improve transparency within these increasingly important markets.
TPI is part of Tullett Prebon, one of the world’s largest interdealer brokers, and the deal enhances Tullett Prebon’s already established global energy brokerage business. It also enables TPI to extend its energy pricing, providing the OTC ethanol, biofuel and palm oil markets with 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.
SCB Group is one of the world’s largest biofuel brokerage firms by size and volume. Under the agreement it will supply assessment and forward curve pricing data relating to various instruments across the three geographic regions. The data will be provided in end-of-day pricing reports covering:
- 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.
The deal is a response to increased demand for pricing data in these key markets, as well as an anticipation of greater demand to come. Concerns over energy security and climate change – and associated regulation – is rapidly pushing these markets into the mainstream. For instance, the automotive biofuel market is expected to grow considerably, from revenues of $94.61 billion in 2013 to $149.25 billion in 2018. This is being matched by higher trading volumes in derivatives for all three commodities.
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.”