Random Lengths will begin reviewing methodologies and price specifications on an annual basis rather than twice a year.
This decision aligns Random Lengths with all other Fastmarkets Price Reporting Agency divisions — including metals and mining and forest products — in conducting annual assessments. This policy was set in place earlier in 2020.
The policy is in line with the International Organization of Securities Commissions (IOSCO) principles for PRAs, which sets out global standards for orderly and fair price assessment processes, and with practices followed by other commodity PRAs. The move also reflects the longevity for our pricing methodologies, which have been designed to fit specific markets over the longer term without needing constant adjustments.
Random Lengths will inform the industry and invite feedback via a pricing notice before annual methodology reviews take place to ensure our methodologies continue to reflect the physical market under assessment.
The annual review will cover the assessment and index methodologies as well as individual price specifications. Proposals to make material changes and discontinue or launch prices will involve a market consultation, the length of which will depend on how substantial the changes are for the industry.
Random Lengths will continue to propose changes to methodologies and prices on an ad-hoc basis as and when necessary, and will carry out a market consultation if the suggested changes are material.
To see Random Lengths pricing methodologies and specification documents go http://www.randomlengths.com/Methodology/. To provide feedback on this notice, please contact Matt Graves at pricing.risi@fastmarkets.com. Please add the subject heading ‘FAO: Matt Graves re: annual methodology reviews.’