il Price Information Service, an internationally referenced price reporting agency serving the oil, natural gas and biofuels industries, has announced that it has successfully completed its third annual independent audit carried out on its oil price reporting business which includes its benchmarked U.S. Natural Gas Liquids, U.S. West Coast Refined Spots, Europe LPG and U.S. Renewables methodologies.
Under voluntary Principles for Oil Price Reporting Agencies (PRAs) set forth by the International Organization of Securities Commissions (IOSCO), OPIS’s spot price discovery procedures and policies are now required to undergo an annual independent audit.
The 2015 report includes OPIS’s response to the IOSCO Principles describing its policies, processes and control activities governing its assessment of in-scope oil and non-oil benchmarks. This is accompanied by the findings of PricewaterhouseCoopers LLP (PwC) who as part of the independent audit have reviewed this response.
PwC reviewed the detailed description of the policies, processes and control activities designed and operated by OPIS to ensure compliance with the requirements of the IOSCO PRA Principles.
OPIS has now brought further non-oil benchmarks into the scope of reporting and independent audit (Chicago Ethanol and U.S. RINs – Renewable Identification Numbers).
On Sept. 17, 2015 IOSCO issued its second annual review of PRAs’ implementation of the Principles and concluded: “the PRAs have made the PRA Principles an integral part of their management policies and operational practices” and that no further review of their implementation would be necessary. IOSCO will continue to monitor the results of the PRAs’ audits.
“Today’s announcement regarding OPIS’s compliance to the IOSCO Principles confirms that we remain committed to fostering transparency in the marketplace through our vital spot price discovery,” said Robert Gough, Director of Content for OPIS.
IOSCO finalized its Principles for Oil Reporting Agencies in October 2012 that govern the quality, integrity and customer response policies of oil commodity spot market coverage.
Details of OPIS’s spot methodologies including the OPIS Spot Price Customer Bill of Rights and OPIS’s adherence to the IOSCO Principles may be found here (http://www.opisnet.com/about/methodology.aspx). OPIS’s full report including the annual independent audit may be found here. (http://notices.opisnet.com/IOSCO).
