LNG Regulatory Reporting, Challenges &Thoughts
• Basis for =LNG is now very important to Europe and the regulators want to ensure fair pricing
• Problem =They have assumed that the perceived potential problems of fair pricing come from
a lack of transparency in a liquid market i.e. the OTC “problem” in other markets historically
(which led to EMIR in Europe)
• Reality in LNG =Physical trades, by virtue of the size and length of typical contracts (at one
end of the scale) or the value and physicality of a single vessel (at the other end) mean that it
doesn’t trade very often….
• Outcome =Reporting requirement is based on a fundamental misunderstanding of the LNG
market and is a burden which undermines the original purpose
3
• Basis for =LNG is now very important to Europe and the regulators want to ensure fair pricing
• Problem =They have assumed that the perceived potential problems of fair pricing come from
a lack of transparency in a liquid market i.e. the OTC “problem” in other markets historically
(which led to EMIR in Europe)
• Reality in LNG =Physical trades, by virtue of the size and length of typical contracts (at one
end of the scale) or the value and physicality of a single vessel (at the other end) mean that it
doesn’t trade very often….
• Outcome =Reporting requirement is based on a fundamental misunderstanding of the LNG
market and is a burden which undermines the original purpose
3
