COVERAGE NOTE: Open consultation on FOEX methodology for PIX Paper Indices
HELSINKI, April 7, 2020 (PIX Pulp & Paper Indices) - Fastmarkets FOEX is inviting feedback from the industry on the pricing methodologies for its PIX Paper price indices, as part of its newly announced annual methodology review process.
As part of this consultation, FOEX also proposes that it annually updates the weighting table that it uses to assign price points to buyers and sellers, with larger buyers/sellers receiving more price points than smaller ones (Appendix 1 in the methodology). The number of price points assigned to each provider is scaled by the annual volume of sales or purchases of paper in each index grade group, updated each January. Given the continuous decline in graphic paper production and consumption, these volumes tend to decrease, which means the weighting scale may become outdated. We propose to publish an updated version of this table, if necessary, annually in February.
This consultation, which is open until May 5th, 2020, seeks to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization of Securities Commissions (IOSCO) principles for Price Reporting Agencies (PRAs). This includes all elements of our pricing process, our price specifications and publication frequency.
Please find the current methodology here of FOEX PIX Paper.
Please send responses in writing, preferably in electronic format, to the following address: hello.foex@fastmarkets.com. Please add the subject heading "PIX Paper annual methodology review”.
Please specify whether your response is confidential. Opinions offered in confidential responses may be referenced but will not be attributed in any way.
Fastmarkets will publish the outcome of this methodology review by May 19th, 2020, including a summary of the feedback with the exception of those marked as confidential. Any proposals to make material changes, discontinue or launch prices will involve a separate market consultation, the length of which will depend on how substantial the change is.
