Hoekstra Announces New Bloomberg Licensing Agreement – “D3T” Goes Live Dec. 9, 2024
Hoekstra Trading LLC is pleased to announce a new data licensing agreement with Bloomberg Finance LP that grants Bloomberg the right to use, display, and deliver Hoekstra Trading’s “D3T” value to Bloomberg users starting December 1st 2024.
D3T is the theoretical value of a D3 Renewable Identification Number (RIN), an environmental credit that subsidizes supply of transportation fuels made from cellulosic biomass like wood chips, corn stalks, landfill biogas and cow manure in the U.S.
D3T is calculated weekly by Hoekstra Trading using equations and methods published by Scott Irwin, Kristin McCormick and James H. Stock in 2020 and by Ben Meiselman in 2017. It is the world’s second licensed theoretical value of an environmental credit. The first was “D4T”, the theoretical value of the D4 RIN, an environmental credit that subsidizes supply of diesel fuel made from biomass like soybean oil, animal fats and used cooking oil in the U.S. D4T is also calculated weekly and was licensed by Hoekstra to Bloomberg Dec. 1, 2023.
The D3T and D4T values are calculated in Hoekstra Trading’s ATTRACTOR spreadsheet using Hoekstra’s best estimates of the variables and parameters in the system of equations that describes the RIN price control system. The calculated values are used by traders to analyze RIN market prices and improve RIN trading strategies with reference to theoretical values calculated based on economic fundamentals.
George Hoekstra, President of Hoekstra Trading LLC said, “The RIN is a complex financial instrument that causes confusing price behavior. Four years of real time commercial use has proven the value of D4T for understanding, interpreting and forecasting RIN prices. The licensing of D3T to Bloomberg expands this capability to cellulosic biofuels”.
“The RIN is a complex financial instrument that causes confusing price behavior.”
George Hoekstra
To learn more, see D4T – The World’s First Licensed Theoretical Value of an Environmental Credit
Contact: George Hoekstra
george.hoekstra@pwsadmin
+1 630 3308159
Recommendation Get Hoekstra Research Report 10
Hoekstra Trading clients use the ATTRACTOR spreadsheet to compare theoretical and market Renewable Identification Number (RIN) prices, analyze departures from theoretical value, and identify trading opportunities on the premise RIN market prices will be attracted toward their fundamental economic values.
Get the Attractor spreadsheet, it is included with Hoekstra Research Report 10 and is available to anyone at negligible cost.
