Oil pricing agencies propose self-regulatory code

(Reuters) -- Oil price reporting agencies Platts, Argus and ICIS have launched a draft price reporting code to avoid conflicts of interest and ensure transparency, moving to head off increased scrutiny proposed by international regulators.

The proposal comes as the International Organisation of Securities Comissions (IOSCO) decides whether to increase oversight of the agencies, whose prices are used for the world"s biggest traded commodity.

Price assessments for over-the-counter oil trade and derivatives produced by industry reporters are used to settle billions of dollars worth of physical oil deals and to help settle trade on benchmark futures exchanges.

The draft independent price reporting organisations, or IPRO, code "provides for robust monitoring and compliance", the companies said on Monday. They believe the code will keep regulators at bay.

"This is a serious piece of work that really codifies what we"ve put in place over the years," said Adrian Binks, Chairman and Chief Executive of privately held Argus Media.

"Many of our customers are telling us they do not want to see us regulated - they are vehemently opposed to it. And it"s essential that we be seen as completely neutral in the work that we do."