Conclusion of open consultation on calculation of averages on the Fastmarkets platform
Following a six-week consultation period, Fastmarkets can confirm it will amend the calculation method for all the average functions on the Fastmarkets platform from Wednesday March 1, 2023.
To align with market convention, Fastmarkets proposed to change the platform average function to represent the monthly average of the midpoint of each pricing session during the month.
Currently, the average function, when used for assessments, calculates the midpoint of the monthly average high assessment and monthly average low assessment.
By the end of the consultation on January 24, no feedback had been received, so Fastmarkets will implement the planned changes on all average calculations (weekly, monthly, quarterly and annual). For technical reasons, however, the changes will come into effect on Wednesday March 1, rather than on Wednesday February 1 as suggested on December 2022.
Although the new platform average function calculation may result in a difference of +/- 0.01 when calculating averages to two decimal places, it will typically be no higher or lower. No averages will be retrospectively changed.
To provide feedback on this decision, please contact email@example.com adding the subject heading: “FAO: Chris Ellis re: Average pricing calculations.”
To see all of Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/methodology.