Products
Settlement Methodology
RPPI derivatives use Asian-style settlement — the arithmetic average of daily fixes over the settlement period determines the final settlement price.
Why Asian-Style
Asian-style (average price) settlement is standard for commodity derivatives in markets where single-day fixing could be vulnerable to manipulation or thin liquidity. By averaging over multiple fixing days, settlement prices better reflect fundamental supply-demand dynamics.
- Reduces manipulation risk from single-day squeezes
- Smooths out day-to-day noise in the index
- Better represents true cost over the contract period
- Aligns with how operators actually procure launch capacity (over time, not spot)
Formula
Settlement Price = (1/N) × Σ RPPI(d_i) for i = 1 to NN = number of fixing days in the settlement period
RPPI(d_i) = daily fix value on day i
Settlement Period = last 5 business days of the contract month (futures) or full tenor (swaps)
Settlement Calendar
Fixing Time16:00 UTC daily
Non-Fixing DaysWeekends, holidays excluded
Futures SettlementLast 5 fixing days of expiry month
Swap SettlementAll fixing days in tenor period
Settlement methodology is subject to periodic review and may be updated. Any changes will be announced with appropriate notice.