Preisagenturen, die den täglichen Referenzpreis von Öl ermitteln

“Price agencies that determine the daily reference price of oil.”

An F.A.Z. article described the way price agencies such as Platts, mainly Platts but also e.g. Argus and I.C.I.S., set a daily world reference price for oil using sales data provided by “market participants.” An expert commented to the newspaper that estimated data are also allowed to flow into those equations because not everyone makes a sale in every oil product type every day. Yet oil sellers have the unhealthy incentive of being able to sell their oil products at higher prices for the next 24 hours after submitting higher price data to the price agencies. Oil financial product sellers that are somehow involved with these price agencies, or somehow involved with the market participants supplying the data used in the agencies’ price-setting formulas, would presumably have similar inflationary incentives.

(PRIZE ogg en TOUR en,   dee   dane   TAY glichh en   ref ah RENTS prize   foor   ILL   ə MITT ell n.)

Bundeskartellamtliche Bußgeldleitlinien

The German Federal Cartel Authority‘s fining guidelines. Appeals to the record-breaking fine imposed on some cement companies for anticompetitive behavior in the 1990’s have prompted discussion of the rules governing Germany’s current maximum limit on cartel fines and how those rules do or do not fit into European and other international structures.

According to Hans Jürgen Meyer-Lindemann’s 08 May 2013 article in the Frankfurter Allgemeine Zeitung, the Cartel Authority updated its relevant rules in 2006 to match European regulations. IIUC, the German fine for collusion is based on the company concerned’s total collusion sales, averaging 20% of that for the “base fine”; but according to European and now German law the fine cannot exceed 10% of the total worldwide gross from the fiscal year before the year the sanction is imposed. Mr. Meyer-Lindemann wrote that the European Court of Justice in Luxemburg decreed for this purpose the definition of the company should be given a broad interpretation, and thus according to the ECJ not just a national subsidiary’s but the parent corporation’s entire worldwide sales should be used in calculating a maximum upper limit for fines for cartel law violations.

Mr. Meyer-Lindemann felt there remain some loose ends in conforming German to European regulations on this issue. Under European law, he said international corporation parent companies have responsibility in antitrust violations committed by their European subsidiaries. The German supreme court in Karlsruhe’s recent decision on the appeal to the cement companies’ cartel fine merely dealt with how to use international corporate assets to calculate more appropriate maximum antitrust fines and did not deal with assigning responsibility when international corporations are involved in such matters. The European approach of having a 10% maximum limit to cartel fines, he wrote, “has been massively criticized by some German commentators.”

(BOON dess car TELL omt lichh ah   BOOSS geld LIGHT lean ian.)

“Nicht mit Ruhm bekleckert”

“Didn’t dribble glory on themselves,” in predicting the 2008 global financial troubles—from Thomas Thiel’s review of social scientist and publicist Werner Rügemer‘s 2012 book about the world’s three major financial ratings agencies.

In his book, Rügemer discussed the “curious financing model” in which clients pay for the grades they receive. Managerially, Rügemer said, many of the same people are members of the boards of the big three ratings agencies, the companies that own the ratings agencies, and the ratings agencies’ clients. Thiel:

“The deeper Rügemer goes into the ownership relationships, the more there unfolds a conglomerate of hedge funds, banks and companies that is worrying in how functionally interwoven it is. Market leader Standard & Poor’s for example belongs to the media house McGraw Hill, which mainly belongs to large investment funds such as BlackRock and Vanguard. These funds own many companies that are regularly/standardly/by default evaluated by the ratings agencies. In addition, many of the same funds are the shareholders behind Moody’s and S&P, such as the investment giant Capital Group. Seated on the supervisory boards (Aufsichtsrat) of the agencies there are companies like Coca-Cola or the pharma company Eli Lilly, plus banks and insurance companies such as Allianz, Morgan Stanley and Goldman Sachs.”

McGraw Hill owns another agency that is very important for setting world oil prices: Platts. Der Spiegel said Platts is the world’s largest energy information service. On Tuesday, 14 May 2013, the EU raided Platts’ London offices and offices of three big European oil companies, Shell (Holland), Statoil (Norway) and BP (UK), seeking information about price fixing allegedly achieved by slight distortions of data going into Platts. If said international oil price distortion occurred, it may have started in 2002.

Background info from the Wall Street Journal: the international “physical-oil market” is worth $2.5 trillion. “Index-publishing firms like Platts derive their prices from self-reported transaction data from participants in deals.”

(Nicked   mitt   ROOM   bah KLECK aht.)

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