DECEMBER 2014

Converging Power and Natural Gas Markets Raise More Questions for Data Management

By Peadar Walsh

Powered by New products and Delisting of products Potential impact Changes to data attributes, data sources and data sources on data replacement of products Summary Editorial 4 The New US Budget: The Energy Sector Becomes More “All of the Above” Power 6 Platts Launches US Southeast and West Electricity Assessments 6 CME Lists New Power Options Contracts 7 EEX Launches Greek Power Futures 7 Platts Discontinues Assessments in North American Bilateral Electricity Markets 8 NYMEX Delists Options for PJM, NE-ISO, and MISO 8 CME Amends Eight NYMEX Electricity Products 9 Petroleum 10 Platts to Launch Weekly Turkey Mid-Sulfur Petcoke Assessment 10 Platts to Launch Palm Oil/Gasoil Spread Assessment at Singapore Close 10 Platts Launches FOB ARA Solvent and Virgin Xylene Assessments 11 Platts Launches Daily European OX Assessment 11 Platts Adds Export ULSD Assessments Page to PGA Service 11 Platts Adds New US Gulf Coast Clean Tanker Assessments to Marine Alert 11 Platts Launches Ultra Low Sulfur Diesel Export Cargoes 12 Platts Launches New US Clean Tanker Assessments from US Gulf Coast 12 Platts Launches USGC-North Clean Tanker Assessment 13 Platts Launches M+4 Cash BFOE Assessment 14 Argus Introduces New Assessments for US Heating Oil and Fuel Oil 15 CME Permits New Block Trades in Euro-Bob Oxy New Options 15 CME Lists New Argus LLS vs. Brent Crude Oil Financial Futures 15 CME Introduces New LLS Argus BALMOs Futures Contracts 16 Adds Mini Brent Crude Futures Contract for ICE Futures Singapore and ICE Clear Singapore 17 Platts to End NEW MIBK, Acetone T1 Assessments 17 Platts to Discontinue Q1, Q2 Benzene Assessments 18 Platts to End Some UKC, Mediterranean, Black Sea, and Clean Tanker Assessments 18 Platts Stops Publishing Latin America ARPEL Postings 19 Platts Discontinues New Methyl Isobutyl and Acetone T1 20 NYMEX Delists Select Contract Months of NY Harbor ULSD vs. Gasoil Futures 20 NYMEX Amends ICE Gasoil Contract Titles 20 Argus Adds Second Month to NYMEX CMA 21 Natural Gas 22 Platts to Launch LNG Atlantic FOB Marker 22 Platts Launches Columbia Gas, Appalachia Listings 23 Argus Adds New Assessments to Argus Natural Gas Americas 23 Argus Adds New Series to Argus European Natural Gas Publication and Data Module 25 Argus Adds New LPG Assessments for Americas 26 Argus Removes Assessments from Argus Natural Gas Americas 27 PEGAS Migrates EEX Natural Gas Business to Powernext 28 Argus Changes Descriptions for Argus International LPG Data Feed 28 Argus Updates Codes for Argus NGL Americas Data Feed 28 Argus Updates Description in Argus Russian LPG and Condensate Data Module 29 Coal 30 Platts to Publish CME Open Interest for US OTC Coal 30 Platts to Publish US OTC Coal Front-Month, Quarter Averages 31 Platts Launches New Dry Bulk Panamax Assessment for Coal Trade Route 31 Argus Introduces New Metallurgical Coke Price Series to Argus Steel Feedstocks Publication 31 Argus Adds New Coal Assessments to Argus Coal Daily International 32 Argus Introduces New Coal-Based Assessments to Argus Freight 32 Platts Proposes Discontinuing CAPP 1% vs. Compliance Coal Spread 33 Argus Revises Codes for Argus Coal Daily International 33 CME Group Expands Contract Month Listing for Indonesian Coal Futures Contract 35 Softs and Metals 36 Platts Launches Supramax, Handysize Dry Bulk Assessments 36 Platts Launches New Dry Bulk Panamax Assessment on Grain Trade Routes 36 Argus Introduces Month Averages to Fertilizer Index 37

December 2014 2 ICE to Issue New Sugar and Contracts for ICE Futures Singapore and ICE Clear Singapore 38 Summary EEX to Extend Portfolio by Introducing Agricultural Products 38 Euronext to Launch Dairy Complex 39 Platts to Delist Northwest European SME Biodiesel Assessments 40 See the original announcement. 40 MGEX to Modify Apple Juice Concentrate Futures Contract 40 Platts Launches Turkey ARC Steel Tracker Data 40 Platts Launches New Dry Bulk Panamax Assessments on Iron Ore Trade Routes 41 Platts Publishes New Platinum/Palladium Prices 42 ICE to Introduce New Gold Contract for ICE Futures Singapore and ICE Clear Singapore 42 ICE Launches CDS Index and European Interest Rate Swap Futures 42 LME Launches LBMA Platinum and Palladium Prices 43 Platts Discontinues Domestic Pig Iron Price 43 Platts Delists China Domestic Stainless CR 201 Price 43 CME and CBOT Begin Treasury Futures Contracts and Invoice Spreads 44 CBOT Launches Treasury Invoice Swaps 44 ICE to List New Chinese Renminbi Futures Contract for ICE Futures Singapore and ICE Clear Singapore 45 ICE and Eris Exchange Launches CDS Index and European Interest Rate Swap Futures 45 Finance 46 Thomson Reuters Launches Malaysian Ringgit and Peso Trading 46 Thomson Reuters Releases StarMine SmartEconomics Forecast Model 46 Deutsche Börse Launches New ETF in XTF Segment on Xetra 47 Deutsche Börse Launches New SPDR Bond Index on Xetra 47 Deutsche Börse Launches New UBS Index ETF on Xetra 47 Deutsche Börse Launches PowerShares Equity Index on Xetra 48 DCCC Introduces New Indian Rupee Contracts 48 TriOptima Launches First Cross Currency Swap Compression in USD/Turkish Lira 49 TriOptima Launches First Compression Cycle for Cleared JPY Interest Rate Swaps 49 DSE Launches Trading Engine Powered by Nasdaq 49 Nasdaq Lists Validea Market Legends ETF 50 Euronext Launches the “Euronext Expert Market” 51 PIMCO Launches New Active ETF on Xetra 52 GFI Launches USD MAC Swaps on RatesMatch 52 HKEx Discontinues Trading of Three-Year Exchange Fund Note Futures 52 CBOE Enters into Agreement with MSCI Inc. to List Index Options 53 ICE Sells Remaining Shares in Euronext 54 ICE Completes Acquisition of Majority Stake in Holland Clearing House 54 ICE Completes Liffe Transition to ICE Futures Europe 54 Bloomberg’s FX Technology Platform Selected by Malaysia Money Brokers Association 55 Eurex and GMEX Sign Swap Futures Trading and Clearing Agreement 55 China Financial Signs MOU with Dubai Gold and Commodities Exchange 56 Korea Exchange and DME Announce Cooperation 56 Weather and Emissions 57 Argus Removes Emission Assessments from Argus Air Daily 57 News from Data Vendors 58 New ZEMA Data Reports – December 2014 58 Successful Launch of 15-Minute Intraday Call Auction in Germany 61 Speedwell SuperPack Offers Historical Weather Data and Weather Data Feeds 62 Opec Member Ecuador Adopts ASCI Price for Crude Exports 63 Crude Oil Brent vs. WTI: Prompt-Month Contract (NYMEX) 64 Monthly Market Analysis 65 Crude Oil Brent vs. WTI: Forward Curve (NYMEX) 65 North American Natural Gas Spot Prices (ICE) 66 Henry Hub Natural Gas Forward Curve (ICE) 67 Actual Weather (AccuWeather) 67 Electricity: Day-Ahead Prices (ICE) 68 In Depth 69 Converging Power and Natural Gas Markets Raise More Questions forData Management 69

December 2014 3 Editorial The New US Budget: The Energy Sector Becomes More “All of the Above”

The US statesmen’s vision for the energy sector has been under a series of transformations over the last several years. It has been through a few cycles, alternating its focus between fossil fuels and renewables, with everything else in between. Nowadays, fossil fuels are on the uptake. On December 13, 2014, US Congress passed H.R. 83, the fiscal year 2015 budget. Some of the winners of next year’s national budget are the Pentagon, the Department of Defense, the National Institute of Health, and education. Overall, the Department of Energy’s $10.2 billion budget was largely unchanged; however, the budget featured mixed outcomes of cuts and additions that solidify the trend of renewable and environmental concerns giving way to fossil fuels – some of the Obama administration’s requests for funds have been reversed and others ignored. The Office of Energy Efficiency and Renewable Energy received a modest increase of $25 million (to $1.937 billion), which nonetheless was about $380 million less than the administration requested. Another denied request was funding for renewable energy research (16% less than President Obama was asking for). Obama was also denied $3 billion he had promised to the Green Climate Fund operating within the framework of the UNFCCC as a mechanism to redistribute money from developed to developing countries to counter climate change. The Environmental Protection Agency (EPA) is losing ground and funding as well: its $8.1 billion budget was cut by $60 million, bringing its staffing to the lowest level since the

December 2014 4 Editorial 1980s and curbing the agency’s efforts in Olga Gorstenko enforcing some air and water laws. This Editor budget reduction also prohibits the EPA from Olga Gorstenko regulating lead ammunition and Phone: 778-296-4183 mountaintop-removal mining. Email: [email protected] On the flip side, Congress was generous to fossil fuels and nuclear power by allocating Advertising & Vendor Relationships more than requested by the administration. Bruce Colquhoun The bill provides $913 million to support Phone: (604) 790-3299 nuclear energy. Fossil fuels research is an Email: [email protected] especially interesting case. President Obama Have an idea for an article or would like to requested a decrease in funding, from contribute to an upcoming issue? Write to us $562 million provided in fiscal year 2014 to at [email protected] $475 million. Instead, Congress increased support by boosting funding $100 million To get real-time data updates, follow above what was asked. Fossil fuels R&D in @zedatawatch on Twitter 2015 will amount to $571 million. To access previous issues of ZE DataWatch, Slowly but surely, federal funding of fossil go to datawatch.ze.com fuels research has been creeping up, ZEMA Inquiries growing by about 50% in the past five years. Bruce Colquhoun Phone: (604) 790-3299 All in all, a greater number of Republican Email: [email protected] representatives in Congress is becoming increasingly successful and inventive. Thus, Obama’s announcement a couple years exchanges and brokers have been adding ago of an “all of the above” energy strategy more products where oil, natural gas, and is playing right into their hands: it is being LNG are underlying commodities. In fact, I quoted mostly by these lawmakers when don’t remember any noticeable additions pledging their support for fossil fuels. to environmental products in many months. Needless to say, the President has not And it is a safe bet that this state of affairs referenced this energy strategy for a while. will not change in the near future.W Meanwhile, the markets do not demonstrate any hesitation about fossil fuels: public

December 2014 5 Power

Platts Launches US Southeast and West Electricity Assessments Effective December 1, 2014, Platts has begun publishing new daily assessments for day-ahead electricity delivered in the Southeast and Western US Interconnections. Platts will be assessing on-peak and off-peak day-ahead, bilateral market assessments for the following delivery locations: Into GTC: Transmission Corp. System John Day: The substation for the John Day Dam in Washington State NOB: The Nevada-Oregon Border interfacing with the Pacific DC Line Pinnacle Peak: A group of substations Northeast of Phoenix, Arizona Westwing: A substation Northwest of Phoenix, Arizona The assessments will be expressed in $/MWh and published on Platts Electricity Alert, Platts Market Data, along with Platts Energy Trader and Megawatt Daily. See the original announcement.

For more information on North American electricity prices, view ZEMA, ZE’s data management solution for electricity market participants. ZEMA collects over 30 Platts reports, many of which are major sources of electricity market updates, including the Platts North America Daily Index. To learn more about ZEMA’s data coverage, visit http://www.ze.com/ the-zema-solutions/data-coverage/.

The ZEMA graph below shows hourly ERCOT Nodal Day Ahead LMP pricing from December 16, 2014 – December 24, 2014. The data is represented in $USD/MWh and has a range from around $15 USD/MWh on December 22 to a high of over $55 USD/MWh on December 19. The rise and fall of prices correlates mostly with daily on- and off-peak hours of electricity usage.

© Graph created with ZEMA

December 2014 6 Power CME Lists New Power Options Contracts On December 8, 2014, the Mercantile Exchange (CME) listed the following new power options for trading on Globex, ClearPort, and the New York Mercantile Exchange (NYMEX): Clearing / Product Name Floor / Globex / Series Listing Convention SPAN Code PJM Western Hub Real-Time Peak Globex: 1 month. ClearPort/Floor: JOA Calendar-Month 5 MW Option 60 consecutive months. PJM Western Hub Real-Time Globex: Three one-year strips (January Peak 5 MW Option on Calendar 6OA contracts). ClearPort/Floor: Three one-year Futures Strip strips (January contracts). MISO Hub (formerly Cinergy Globex: One one-year strips (January contracts). Hub) Real-Time Peak 5 MW Option OEA ClearPort/Floor: Five one-year strips on Calendar Futures Strip (January contracts). Globex: 18 consecutive months. ClearPort/ PJM Western Hub Real-Time Peak PMA Floor: The current year plus the next five Calendar-Month 50 MW Option calendar years. PJM Northern Illinois Hub Real-Time Globex: 1 month. ClearPort/Floor: The current OUA Peak Calendar-Month 5 MW Option year plus the next four calendar years. MISO Indiana Hub (formerly Globex: 1 month. ClearPort/Floor: The current Cinergy Hub) Real-Time Peak OYA year plus the next four calendar years. Calendar-Month 5 MW Option ISO Day-Ahead Peak Globex: 1 month. ClearPort/Floor: The current INE Calendar-Month 5 MW Option year plus the next five calendar years.

All options are 5MW except for PJM Western Hub Real-Time Peak Calendar-Month, which is 50MW. See the original announcement.

EEX Launches Greek Power Futures On December 1, 2014, the European Energy Exchange (EEX) launched the Trade Registration service of financially fulfilled Greek Power Futures. First trades were registered for delivery in January 2015, concluded between Ezpada s.r.o. and Gunvor International B.V., Geneva Branch, and matched by the broker ICAP. The volume comprised 744 MWh each, traded at a price of EUR 59.00 per MWh and EUR 59.25 per MWh. With the new service, EEX participants are able to trade financial month, quarter, and year contracts for Greek Power, which clear on the exchange. The entry into the Greek market is of particular interest for customers that are already trading Italian Power Futures on EEX, as both power markets are physically connected. See the original article.

ZEMA collects a range of European power market data, including over 30 records from the EEX. These records include futures price and trading data. To learn more, visit http://www.ze.com/the-zema-solutions/.

December 2014 7 Power Platts Discontinues Assessments in North American Bilateral Electricity Markets Effective December 1, 2014, Platts no longer publishes price assessments for North American bilateral electricity markets that are served by an independent system operator. Platts North American electricity price assessments were largely redundant with the day-ahead, on-peak and off-peak prices the ISOs publish. Also, ISO auctions provide price transparency for a much larger number of hubs and zones than were traded in the bilateral power markets. Below are the day-ahead, weekend, and near-term bilateral indexes that Platts has discontinued: • AD Hub • Michigan Hub • Dominion Hub • Minnesota Hub • Entergy, into • N.Y. Zone-A • ERCOT, Houston • N.Y. Zone-G • ERCOT, North • N.Y. Zone-J • ERCOT, South • NI Hub • ERCOT, West • NP15 • Illinois Hub • Ontario • Indiana Hub • PJM West • MAPP, South • SP15 • Mass Hub • SPP, North

See the original announcement.

NYMEX Delists Options for PJM, NE-ISO, and MISO Effective December 8, 2014, NYMEX delisted three electricity options, as set out in the table below due to lack of interest.

Contract Code Rulebook Chapter Contract Name

OU 384 PJM Northern Illinois Hub Peak Calendar-Month LMP Option MISO Indiana Hub (formerly Cinergy Hub) Peak Calendar-Month OY 383 LMP option OE 381 ISO New England Peak Calendar-Month LMP Option See the original announcement.

December 2014 8 Power CME Amends Eight NYMEX Electricity Products Effective January 18, 2015, CME will amend the termination of trading rules for eight monthly electricity futures contracts as shown in the following table:

Clearing Clearing Chapter Monthly Futures Chapter Corresponding Daily Futures Code Code

PJM AEP Dayton Hub Day-Ahead LMP Peak PJM AEP Dayton Hub Day-Ahead D7 156 PAP 953 Calendar-Month Peak Calendar-Day 5 MW Futures 5 MW Futures

PJM AEP Dayton Hub PJM AEP Dayton Hub Day-Ahead Day-Ahead Off-Peak R7 157 PEO 954 Off-Peak Calendar-Day Calendar-Month 5 MW Futures 5 MW Futures

MISO Indiana Hub (formerly Cinergy Hub) Day-Ahead MISO Indiana Hub Day-Ahead H5 859 PDD 1074 Peak Calendar-Month Peak Calendar-Day 5 MW Futures 5 MW Futures

MISO Indiana Hub (formerly MISO Indiana Hub Day-Ahead Cinergy Hub) 5 MW Peak H3 802 PTD 1075 Off-Peak Calendar-Day Calendar-Month 5 MW 5 MW Futures Futures

MISO Indiana Hub (formerly MISO Indiana Hub Real-Time Cinergy Hub) Day-Ahead K2 893 FAD 1076 Off-Peak Calendar-Day Off-Peak Calendar-Month 5 MW Futures 5 MW Futures

MISO Indiana Hub (formerly MISO Indiana Hub Real-Time Cinergy Hub) Real-Time H4 803 FTD 1077 Off-Peak Calendar-Day Off-Peak Calendar-Month 5 MW Futures 5 MW Futures

Ontario Peak Ontario Peak OPM 960 OPD 964 Calendar-Month Futures Calendar-Day Futures

Ontario Off-Peak Ontario Off-Peak OFM 961 OFD 965 Calendar-Month Futures Calendar-Day Futures

See the original announcement.

December 2014 9 Petroleum

Platts to Launch Weekly Turkey Mid-Sulfur Petcoke Assessment On February 4, 2015, Platts will launch a new weekly CIF Turkey mid-sulfur petroleum coke assessment. The new assessment will take into account petcoke trades done in a forward 30-60-day delivery window. Cargoes traded with more prompt or further forward laycans would be normalized to the middle of the assessment period. The assessment will be normalized to the port of Iskenderun, but will take into account the ports of Izmir, Marmara, and Samsun. The range of petcoke specifications for inclusion in the assessment will be: Calorific value of 7,000-8,000 kcal/kg NAR, 4-5.5% sulfur content and Hardgrove Grindability Index of 45-55. The price assessment will be normalized to reflect the price of mid-sulfur petcoke of 5% sulfur content and 50 HGI in Handymax 50,000 mt vessels on a 7,500 kcal/kg NAR calorific value basis. See the original announcement.

ZEMA collects a range of Platts crude oil and petroleum products data. To learn more, visit http://www.ze.com/the-zema-solutions/

Platts to Launch Palm Oil/Gasoil Spread Assessment at Singapore Close Effective February 2, 2015, Platts will launch an assessment of the palm oil/gasoil spread, which will reflect the value of the first forward month contract for Bursa Malaysia palm oil futures minus the value of front-month ICE gasoil futures. This assessment will be expressed in US dollars per metric ton and published in the Platts BiofuelScan, and under the code POVGO00 in the Platts database. See the original announcement.

December 2014 10 Petroleum Platts Launches FOB ARA Solvent and Virgin Xylene Assessments Effective January 2, 2015, Platts will publish FOB ARA solvent and virgin xylene assessments on a daily basis to capture intra-week liquidity. The new daily assessments will replace the weekly prices of solvent (PHAAW00) and virgin xylene (PHABD00) published every Friday in the Europe and Americas Petrochemicalscan. These prices can be found on Platts Petrochemical Alert pages PC 328 and PCA 233. See the original announcement.

To receive up-to-date petrochemical price data, utilize ZEMA, ZE’s enterprise data management solution. ZEMA collects data from many Platts reports containing information on petroleum products. To learn more, visit http://www.ze.com/ the-zema-solutions/data/.

Platts Launches Daily European OX Assessment Effective January 2, 2015, Platts published FOB ARA orthoxylene assessments on a daily basis in order to capture intra-week liquidity. Currently, Platts publishes weekly assessment for orthoxylene (PHABK00) on Fridays. This assessment can be found on Platts Petrochemical Alert on page PCA332 and in the Europe and Americas Petrochemicalscan. See the original announcement.

Platts Adds Export ULSD Assessments Page to PGA Service On December 15, 2015, Platts added a new daily assessment page to Platts Global Alert (PGA), its real-time information service for the oil markets, to accommodate newly launched assessments for export ULSD. This new page, PGA page 434, carries Platts Export ULSD assessment in both cents/gallon and dollars/metric ton. These assessments, which were launched on December 1, also appear on PGA page 481, alongside other US diesel assessments. See the original announcement.

ZEMA, ZE’s data management solution for oil market participants, collects over 650 oil records on a daily basis. To learn more about how to leverage ZEMA’s rich library of oil market intelligence, visit http://www.ze.com/the-zema-suite/.

Platts Adds New US Gulf Coast Clean Tanker Assessments to Marine Alert On December 1, 2014, Platts added a new daily assessment page to Platts Marine Alert, its real-time information service for the shipping markets, to accommodate newly launched assessments for Long Range clean tankers from the US Gulf Coast.

December 2014 11 These assessments—reflecting 65,000-80,000 dwt LR1 tankers carrying clean products from Petroleum the US Gulf Coast to UK Continent and the Mediterranean—can be found on PGT page 1,924. Both assessments, and the page, were launched on the same date. See the original announcement.

Platts Launches Ultra Low Sulfur Diesel Export Cargoes Effective December 1, 2014, Platts has launched a FOB USGC Export ULSD assessment which reflects EN590 quality diesel with a typical standard clip size of 300,000 barrels and a typical operational tolerance of plus/minus 10%. The assessment reflects cargoes loading seven to 21 days forward from the date of publication, subject to industry standard terminal and vessel nomination procedures. Export ULSD should be free of any biofuels. Loading locations include terminals along the US Gulf Coast from Corpus Christi, Texas, to Pascagoula, Mississipi, normalized to a Houston basis. The FOB USCGC Export ULSD assessment does not include the value of Renewable Volume Obligations (RVOs), which reflect the cost of supplying RINs with fuel when mandated by the US Environmental Protection Agency as part of the Renewable Fuel Standard. RVOs are the amount of renewable fuels to be blended into transportation fuels for US domestic consumption. The new assessment was published as an outright value in both cents/gallon and $/mt. The value of any cargoes trading as a differential to prompt pipeline ULSD will be assessed by calculating a forward value for pipeline diesel to align with the 7-21 day Export ULSD assessment window. See the original announcement.

ZEMA collects over 300 data reports on petroleum and other liquids from Platts alone. To learn more, visit http://www.ze.com/the-zema-solutions/data/.

Platts Launches New US Clean Tanker Assessments from US Gulf Coast On December 1, 2014, Platts launched new clean Long Range 1 tanker freight rate assessments, reflecting flows from US Gulf Coast to UK Continent, following a proposal to do so published in October 2014. The new assessments capture newly established supply trends of refined products out of the region following significant structural changes to the US oil industry and reflect shifting trading patterns. The new assessments reflect modern LR1 tonnage no more than 15 years old. The assessments are published on a Worldscale basis to reflect how these routes are traded. Platts also publishes a dollars per metric ton value for these routes.

December 2014 12 The assessments are: Petroleum This assessment is based on a 65,000-80,000 dwt LR1 tanker carrying a 60,000 mt cargo of clean products from the US Gulf Coast to UK Continent, and US Gulf Coast to UK reflects the increased amount of refined products leaving the US Gulf Coast. The Continent assessment includes loadings from and Houston and discharge at Rotterdam and Antwerp. This assessment is based on a 65,000-80,000 dwt LR1 tanker carrying a 60,000 mt cargo of clean products from the US Gulf Coast to the Mediterranean, US Gulf Coast and reflects the increased amount of refined products leaving the US Gulf Coast. to Mediterranean The assessment includes loadings from New Orleans and Houston and discharge at Lavera and Genoa.

See the original announcement.

Platts Launches USGC-North Brazil Clean Tanker Assessment On November 24, 2014, Platts launched a new clean Medium Range tanker freight rate assessment reflecting flows from US Gulf Coast to North Brazil, following a proposal to do so published in October 2014. The new assessment captures newly established supply trends of refined products out of the region following significant structural changes to the US oil industry. The new assessment reflects modern MR tonnage. US Gulf Coast to North Brazil This assessment is published on a Worldscale basis to reflect how this route is most commonly traded. Platts also publishes a dollars-per-metric-ton value for this route. The assessment reflects the US Gulf Coast to North Brazil route for a clean MR tanker carrying a cargo of 38,000 mt. The assessment reflects loadings from Houston and New Orleans and discharge at ports including Manaus, Belem, and Sao Luis. See the original announcement.

ZEMA collects nearly 50 data reports on freight from all over the world. For more information, visit http://www.ze.com/ the-zema-solutions/data/.

December 2014 13 Petroleum Platts Launches M+4 Cash BFOE Assessment Effective October 1, 2014, Platts has launched a Cash BFOE assessment to reflect four forward Brent monthly contracts ahead of the month of publication (M+4). The instrument complements Platts existing Cash BFOE assessments, which used to reflect one, two, and three months ahead of the month of publication. Platts also launched an Exchange of Futures for Physical (EFP) assessment to reflect the EFP for M+4 Brent. The new assessments are published alongside Platts’ existing Cash BFOE and EFP assessments in Platts Crude Oil Marketwire, Platts Oil Price Report, and on Platts Global Alert pages 1210 and 1212. See the original announcement.

The ZEMA graph below illustrates Brent Crude – Last Day Futures, with a forecast date of December 22, 2014, from January 2015 until December 2016. This data is collected from CME and shows a steady increase in oil pricing ranging from approximately $60 USD/bbl to $72 USD/bbl, as shown by the orange threshold filter.

© Graph created with ZEMA

December 2014 14 Petroleum Argus Introduces New Assessments for US Heating Oil and Fuel Oil On November 24, 2014, Argus made changes to the Argus US Products publication and data module. These changes apply to data in the dhp and dhps .csv files in the DUSPR folder on ftp.argusmedia.com. Argus has reinstated its assessment of New York of New York low-pour 0.3pc S fuel oil (PA0000826). This code was previously stopped on October 22, 2014: Time Price Continuous PA-code Description Category Frequency stamp type forward Fuel oil No 6 0.3% Products>Fuel oil>US east PA0000826 2 1, 2 0 Daily low-pour NYH coast As well, Argus added the following heating oil 500ppm assessments from November 24, 2014: Time Price Continuous PA-code Description Category Frequency stamp type forward Heating oil 500ppm >Products>Gasoil/Diesel/ 1, 2, PA0015303 2 1, 2, 3 Colonial 75 pipe Heating oil>US Colonial Daily 6, 7 fob cycle pipeline Heating oil 500ppm 1, 2, >Products>Gasoil/Diesel/ PA0015304 2 0 NYH fob Daily 6, 7 Heating oil>US east coast prompt

See the original announcement.

CME Permits New Block Trades in Gasoline Euro-Bob Oxy NEW Barges Options Effective December 21, 2014, the Chicago Mercantile Exchange (CME) has permitted block trading on Gasoline Euro-bob Oxy NEW Barges (Argus) Average price options with a minimum threshold of five contracts. A block trade is a privately negotiated futures, options, or combination transaction that meets certain quantity thresholds which are permitted to be executed apart from the public auction market. See the original announcement.

Using ZEMA’s advanced data collection and analytic capabilities, market participants can easily keep track of the new data that will be generated by CME. To learn more, visit http://www.ze.com/the-zema-solutions/.

CME Lists New Argus LLS vs. Brent Crude Oil Financial Futures Effective December 8, 2014, CME Group listed a new LLS Argus spread against Brent Crude Oil futures contract. Details listed below: • Trading venues: Globex, ClearPort, and NYMEX Trading Floor • Clearing Floor Code, Globex Code, SPAN Code: LLR

December 2014 15 • Product size: 1,000 barrels Petroleum • Series listing convention: 30 consecutive months • Initial contracts: January 2015 – June 2017 • Minimum price increment: 0.01 • Value per tick / currency: 1,000 x 0.01 = $10.00 • Block Eligible / Minimum Block Quantity: Yes / 5 • Financial settlement date: LTD + 2 • Delivery: Financially settled Price Conventions -7.97 Trade Prices -7.96 -7.95 ITC Fractional Format -0000797 Option Strikes N/A ITC Fractional Indicator 2 -797 Globex Prices -796 -795 Market Data Platform Channel 244 See the original announcement.

CME Introduces New LLS Argus BALMOs Futures Contracts On December 8, 2014, CME Group listed two new futures contracts: LLS Argus vs. Brent Balmo Futures and LLS Argus vs. WTI Balmos Futures. Details listed below: Product Name Clearing / Floor / Globex Code SPAN Code LLS (Argus) vs. Brent Balmo Futures LBB LBB LLS (Argus) vs. WTI Balmo Futures LWB LWB • Trading venues: Globex, ClearPort, and NYMEX Trading Floor • Product size: 1,000 barrels • Series listing convention: One month and the following month listed 10 business days prior to the start of the contract month • Initial contracts: January 2015 • Minimum price increment: 0.01 • Value per tick / currency: 1,000 x 0.01 = $10.00 • Block Eligible / Minimum Block Quantity: Yes / 5 • Financial settlement date: LTD + 2 • Delivery: Financially settled

December 2014 16 Petroleum Price Conventions Trade Prices LBB: -1.73 LWB: 3.47 ITC Fractional Format LBB: -0000173 LWB: 0000347 Option Strikes N/A ITC Fractional Indicator 2 Globex Prices LBB:-173 LWB:347 Market Data Platform 244 Channel

See the original announcement.

ZEMA collects many reports from the Chicago Mercantile Exchange regarding Chicago Board of Trade financial information, including the CBOT Futures daily price report. To learn more about how to transform this collected data into useful market intelligence, visit http://www.ze.com/the-zema-suite/market-analyzer/

ICE Adds Mini Brent Crude Futures Contract for ICE Futures Singapore and ICE Clear Singapore Effective March 17, 2015, Intercontinental Exchange (ICE) will list a mini ICE Brent crude futures contract, which will be among the first to be listed for trading and clearing at ICE Futures Singapore and ICE Clear Singapore, subject to regulatory approval from the Monetary Authority of Singapore (MAS). The contract will be cash settled. This new futures contract will complement ICE’s existing portfolio of benchmark contracts, which includes ICE’s Brent contracts. ICE Trade Vault, LLC has submitted a foreign trade repository application to MAS, which will further support market participants’ compliance with regulatory reform in the region. See the original announcement.

Platts to End NEW MIBK, Acetone T1 Assessments Effective April 1, 2015, Platts will discontinue its NWE methyl isobutyl (MIBK) and acetone T1 assessments. This decision note supersedes the previous note published on November 28, 2014, and alters the effective date. Following a comprehensive review of feedback, Platts reconsidered its initial proposal published June 10, 2014, to also discontinue price assessments for methyl ethyl ketone (MEK) and will continue to publish weekly assessments for that product. The assessments, which are to be discontinued, are found under the following codes in the Platts price database: • Acetone T1 FOB Rotterdam PHADK00 Monthly average: PHAYM03

December 2014 17 • MIBK FD NWE Eur/mt HPADX00 Monthly average: HPAYW03 Petroleum • MIBK FOB Rotterdam PHADY00 Monthly average: PHAYV03 See the original announcement.

Platts to Discontinue Q1, Q2 Benzene Assessments Effective April 1, 2015, Platts will discontinue its Q1 and Q2 CIF ARA benzene assessments. This decision note supersedes the previous note, published on November 10, 2015, and alters the effective date. These benzene assessments to be discontinued are currently published on page PCA60 and found under the following codes in the Platts price database: • Benzene CIF ARA Q1 USD AAIBN00 Monthly Average: AAIBO00 • Benzene CIF ARA Q2 USD AAIBP00 Monthly Average: AAIBQ00 Following a comprehensive review of feedback, Platts reconsidered its initial proposal published April 6, 2014, to also discontinue its T2 FOB ARA toluene assessment and will continue to publish daily assessments. These toluene assessments are published on page PCA233 and page PCA377 and are found under the following codes in the Platts price database: • Toluene T2 FOB ARA PHAFW00 Monthly Ave: PHBFM03 Weekly Ave: PHAFV04 • Toluene T2 FOB ARA Mo01 AAXOK00 Monthly Ave: AAXOK03 Weekly Ave: AAXOK04 • Toluene T2 FOB ARA Mo02 AAXOL00 Monthly Ave: AAXOL03 Weekly Ave: AAXOL04 See the original announcement.

Platts to End Some UKC, Mediterranean, Black Sea, and Caribbean Clean Tanker Assessments On April 1, 2014, Platts will discontinue a series of assessments for clean tanker spot market rates in markets where the movement of clean petroleum products has changed substantially or no longer occurs. These assessments reflect certain shipping routes and sizes from the UK Continent, Mediterranean, Black Sea and Caribbean to various destinations. The proposed discontinuations reflect the fact that clean petroleum products flows have changed significantly in the market at large, and these routes no longer reflect most typical trading patterns. A full table showing affected assessments is provided below.

December 2014 18 Petroleum Discontinuations from UKC Origin Points Codes Assessments PFAMW00 Clean UKC- MR Lumpsum Basis (30kt) Daily PFARU03 Clean UKC-South America MR Lumpsum Basis (30kt) MAVG TCACD00 Clean UKC-South America MR $/mt (30kt) Daily TCACD03 Clean UKC-South America MR $/mt (30kt) MAVG PFAMWSZ Clean UKC-South America MR cargo size PFAMN00 Clean UK Continent-UK Continent LR Worldscale Basis (60kt) Daily PFARP03 Clean UK Continent-UK Continent LR Worldscale Basis (60kt) MAVG TCABW00 Clean UK Continent-UK Continent LR $/mt (60kt) Daily Codes Assessments TCABW03 Clean UK Continent-UK Continent LR $/mt (60kt) MAVG PFAMNSZ Clean UK Continent-UK Continent LR cargo size PFAMO00 Clean UK Continent-Mediterranean LR Worldscale Basis (60kt) Daily PFARQ03 Clean UK Continent-Mediterranean LR Worldscale Basis (60kt) MAVG TCABU00 Clean UK Continent-Mediterranean LR $/mt (60kt) Daily TCABU03 Clean UK Continent-Mediterranean LR $/mt (60kt) MAVG PFAMOSZ Clean UK Continent-Mediterranean LR cargo size Discontinuations from Med and Black Sea Origin Points Codes Assessments PFALA10 Clean Med-South America MR Lumpsum Basis (30kt) Daily AAAUS00 Clean Med-South America MR Lumpsum Basis (30kt) MAVG TCACH00 Clean Med-South America MR $/mt (30kt) Daily TCACH03 Clean Med-South America MR $/mt (30kt) MAVG PFALASZ Clean Med-South America MR cargo size PFALB10 Clean Black Sea-South America MR Lumpsum Basis (30kt) Daily AAAUO00 Clean Black Sea-South America MR Lumpsum Basis (30kt) MAVG TCACJ00 Clean Black Sea-South America MR $/mt (30kt) Daily TCACJ03 Clean Black Sea-South America MR $/mt (30kt) MAVG PFALBSZ Clean Black Sea-South America MR cargo size Discontinuations from Caribbean Origin Points Codes Assessments PFAMY00 Clean Caribbean-South America MR Worldscale Basis (38kt) Daily PFAQJ03 Clean Caribbean-South America MR Worldscale Basis (38kt) MAVG TCACN00 Clean Caribbean-South America MR $/mt (38kt) Daily TCACN03 Clean Caribbean-South America MR $/mt (38kt) MAVG PFAMYSZ Clean Caribbean-South America MR cargo size See the original announcement.

Platts Stops Publishing Latin America ARPEL Postings Effective January 2, 2015, Platts has stopped publishing consumer price postings in Latin America as gathered by the Asociacion Regional de Empresas del Sector Petroleo (ARPEL). The decision reflects diminished appetite for the data from Platts subscribers and follows a proposal first published on October 31, 2014, to stop publishing this data. See the original announcement.

December 2014 19 Petroleum Platts Discontinues New Methyl Isobutyl and Acetone T1 Effective January 2, 2015, Platts has discontinued its NWE methyl isobutyl (MIBK) and acetone T1 assessments from January 2, 2015. Following a comprehensive review of feedback, Platts reconsidered its initial proposal published June 10 to also discontinue price assessments for methyl ethyl ketone (MEK) and will continue to publish weekly assessments for that product. The assessments, which have been discontinued, are found under the following codes in the Platts price database: Acetone T1 FOB Rotterdam PHADK00M Monthly Average PHAYM03 MIBKFD NEW Eur/mt HPADX00 Monthly Average HPAYW03 MIBK FOB Rotterdam PHADY00 Monthly Average PHAYV03 See the original announcement.

NYMEX Delists Select Contract Months of NY Harbor ULSD vs. Gasoil Futures Effective December 8, 2014, the New York Mercantile Exchange (NYMEX) delisted from trading previously-listed contract months of the NY Harbor ULSD vs. Gasoil Futures contract. There was no open interest in the delisted contract months. The details are summarized in the following table: Listing Schedule Contract Title / Listing Schedule as of Contract Months Commodity Prior to December 8, Rulebook December 9, 2014 – CPC, Delisted as of Code 2014 – CPC, Globex, Chapter Globex, and NX Pit December 8, 2014 and NX Pit NY Harbor ULSD CPC/NX Pit Monthly contracts up to January 2015 vs. Gasoil HA Globex: Current year + 1 and including contract month and Futures/725 HAB December 2014 beyond See the original announcement.

NYMEX Amends ICE Gasoil Contract Titles Effective January 5, 2015, NYMEX amended the product titles of a series of ICE Gasoil based futures and options contracts to ICE Low Sulfur Gasoil to reflect corresponding amendments to the underlying ICE gasoil futures contract. NYMEX also amended all references to the contracts throughout the NYMEX rulebook and CME Group website to reflect the new naming convention. Minor textual adjustments include clarifications to the floating price rules. It is important to note that the title changes and all related amendments is administrative in nature and will, in no manner, impact the structure of the contract or related contracts. See the original announcement.

December 2014 20 Petroleum

Argus Adds Second Month to NYMEX CMA On December 1, 2014, Argus added a new price series to the Argus Americas Crude publication and data module. These changes apply to data in the DHC module in the DCRDEUS folder on ftp.argusmedia.com. A second forward month for NYMEX CMA month has been added to the following: Time Price Continuous PA-code Description Category Frequency stamp type forward NYMEX CMA PA0010005 2 8 2 >Crude>North America>Canada Daily month See the original announcement.

December 2014 21 Natural Gas Platts to Launch LNG Atlantic FOB Marker On January 20, 2015, Platts will launch an additional marker to reflect the FOB value of LNG cargoes originating from the East Atlantic. The new assessment is called the East Atlantic Market (EAM). It is intended to reflect a transactable value of spot LNG cargoes, freight normalized to a Huelva/Gibraltar loading with a laycan corresponding to the current and front month in half-month increments drawing on volumes originating from the following primary and re-export locations in both North West and South West Europe including the Mediterranean, including FOB cargoes sold on a ship-to-

ship transfer basis. Production regions are also included such as Nigeria, Angola, Algeria and Nat Gas . LNG DES spot transactions, traded in other regions including Middle East and Asia, along with Atlantic delivery to Brazil and , may be considered in the assessment process when and where appropriate. The assessment process is in line with existing Platts LNG methodology. See the original announcement.

ZEMA collects over 30 Platts records, including many natural gas records. To gain more informed insight regarding Platts’ natural gas assessments, view ZEMA’s Platts records and natural gas records. To learn more, visit http://www.ze.com/the-zema-solutions/.

The ZEMA graph below illustrates Henry Hub Natural Gas Futures data from January 2015 until December 2016, with a forecast date of December 23, 2014. With a high of approximately $3.85 USD/MMbtu in December 2016 and a low of approximately $3.1 USD/MMbtu in April 2015, pricing generally increases between January 2015 and December 2016. This data is collected from forward curve analyses from a CME data report.

© Graph created with ZEMA

December 2014 22 Natural Gas Platts Launches Columbia Gas, Appalachia Listings Effective January 2, 2015, Platts added to its daily and monthly bidweek price surveys sub-listings for Columbia Gas, Appalachia deliveries. Prices in the Columbia Gas Transmission system have bifurcated between those that are part of the Columbia Gas Interruptible Paper Pool (IPP) and those that are not (Non-IPP). The description for the new location is: Deliveries to Columbia Gas Transmission from on-system production locations that Columbia Gas, are restricted from Columbia’s IPP pool (TCO pool). This pricing location does not Appalachia include transactions for gas delivered to Columbia from interconnects with other (Non-IPP) interstate pipeline systems.

See the original announcement.

Argus Adds New Assessments to Argus Natural Gas Americas On January 2, 2015, Argus added the following new series to the Argus Natural Gas Americas publication. The following PA code details can be found in the dnga in the DNGA folder on ftp.argusmedia.com: Time Price Continuous PA-code Description Category Frequency stamp type forward Natural gas hub Florida Gas >Natural gas> PA0015302 2 17, 3 0 zone 2 day-ahead index month North Ameri- Monthly average ca>Gulf/Texas Natural gas hub Transco zone >Natural PA0015292 2 17, 3 0 6 nonNY North day-ahead gas>North Monthly index month average America>East See the original announcement.

On December 1, 2014, Argus introduced the following new codes to the same publication: Time Price Continuous PA-code Description Unit Category Frequency stamp type forward Natural Natural gas hub Trans- USD/ gas>North PA0015291 2 3, 4 0 co zone 6 nonNY North Daily mnBtu Ameri- day-ahead Index ca>East Natural gas hub Natural Transco zone 6 nonNY gas>North PA0015293 2 8 0 No Unit Daily North day-ahead no of Ameri- trades ca>East Natural gas hub Trans- Natural co zone 6 nonNY North gas>North PA0015294 2 29 0 mnBtu Daily day-ahead traded Ameri- volume ca>East

December 2014 23 Natural Gas Time Price Continuous PA-code Description Unit Category Frequency stamp type forward Natural Natural gas hub Trans- USD/ gas>North PA0015295 2 1 0 co zone 6 nonNY North Daily mnBtu Ameri- day-ahead mid-range ca>East Natural Natural gas hub Trans- USD/ gas>North PA0015296 2 1 0 co zone 6 nonNY North Daily mnBtu Ameri- day-ahead ca>East Natural Natural gas hub Trans- USD/ gas>North PA0015297 2 1 0 co zone 6 nonNY North Monthly mnBtu Ameri- bid week ca>East Natural Natural gas hub Trans- USD/ gas>North PA0015298 2 4 0 co zone 6 nonNY North Monthly mnBtu Ameri- Index bid week ca>East Natural Natural gas hub Trans- gas>North PA0015299 2 8 0 co zone 6 nonNY North No Unit Monthly Ameri- no of trades bid week ca>East Natural gas hub Trans- Natural co zone 6 nonNY North gas>North PA0015300 2 29 0 mnBtu Monthly traded volume bid Ameri- week ca>East Natural Natural gas hub Trans- USD/ gas>North PA0015301 2 4 0 co zone 6 nonNY North Daily mnBtu Ameri- everyday Index ca>East As well, the following codes, which were previously made inactive, have resumed publication: Time Price Continuous PA-code Description Unit Category Frequency stamp type forward >Natural Natural gas hub USD/ gas>North PA0006093 2 3, 4 0 Florida Gas zone 2 Daily mnBtu America>Gulf/ day-ahead Index Texas Natural gas hub >Natural Florida Gas zone No gas>North PA0006095 2 8 0 Daily 2 day-ahead no of Unit America>Gulf/ trades Texas Natural gas hub >Natural Florida Gas zone 2 gas>North PA0006096 2 29 0 mnBtu Daily day-ahead traded America>Gulf/ volume Texas

December 2014 24 Natural Gas Time Price Continuous PA-code Description Unit Category Frequency stamp type forward >Natural Natural gas hub 1, 2, USD/ gas>North PA0006097 2 0 Florida Gas zone 2 Daily 8 mnBtu America>Gulf/ day-ahead Texas Natural gas hub >Natural 1, 2, Florida Gas zone USD/ gas>North PA0006242 2 0 Daily 8 2 day-ahead mid- mnBtu America>Gulf/ range Texas >Natural Natural gas hub USD/ gas>North PA0008952 2 4 0 Florida Gas zone 2 Daily mnBtu America>Gulf/ everyday Index Texas See the original announcement.

ZEMA collects Argus natural gas data on a daily basis from over 14 records. To learn more about ZEMA, book a complimentary demonstration today at http://www.ze.com/book-a-demo/.

Argus Adds New Series to Argus European Natural Gas Publication and Data Module Effective December 19, 2014, Argus added the following new series to the Argus European Natural Gas publication and data module. The following PA code details can be found in the DNG module in the DENG folder on ftp.argusmedia.com. Time Price Continuous PA-code Description Category Frequency stamp type forward Natural gas PSV >Natural gas> PA0015353 6 1, 2 0 Weekly Eur/MWh weekend Europe>PSV >Natural gas> Natural gas PSV- Europe>PSV> PA0015354 6 8 0 NCG Eur/MWh Basis Weekly Natural gas> weekend Europe>NCG >Natural gas> Natural gas PSV- Europe>PSV> PA0015355 6 8 0 TTF Eur/MWh Basis Weekly Natural gas> weekend Europe>TTF See the original announcement.

December 2014 25 Natural Gas 26 Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Frequency >LPG> Americas>Natural gasoline >LPG> Americas> Isobutane >LPG> Americas>Butane >LPG> Americas> Propane >LPG> Americas>Natural gasoline >LPG> Americas> Isobutane >LPG> Americas> Isobutane >LPG> Americas>Butane >LPG> Americas> Propane >LPG> Americas> Propane Category Natural gasoline Conway percentage of WTI Isobutane Conway percentage of WTI Normal butane Conway percentage of WTI Propane Conway percentage of WTI Natural gasoline Mt Belvieu Enterprise percentage of WTI Isobutane Mt Belvieu LST percentage of WTI Isobutane Mt Belvieu Enterprise percentage of WTI Normal butane Mt Belvieu Enterprise percentage of WTI Propane Mt Belvieu LST percentage of WTI Propane Mt Belvieu Propane Mt Belvieu of Enterprise percentage WTI Description 0 0 0 0 0 0 0 0 0 0 Continuous forward 8 8 8 8 8 8 8 8 8 8 Price type 2 2 2 2 2 2 2 2 2 2 Time stamp

PA0015334 PA0015333 PA0015332 PA0015331 PA0015330 PA0015329 PA0015328 PA0015327 PA0015326 PA0015325 PA-code December 2014 ZEMA collects Argus natural gas data, including data from the Argus International LPG record and the Argus LNG Daily Argus International LPG record and the Argus ZEMA collects Argus natural gas data, including data from the today at http://www.ze.com/book-a-demo/. record. To learn more about ZEMA, book a free demonstration See the original announcement. Details are as follows: Details are as These changes apply to the dngl file in the DNGL folder of ftp.argusmedia.com. DNGL folder file in the to the dngl changes apply These data module. NGL Americas data module. Argus to the added new series Argus 8, 2014, On December Argus LPG New Adds Assessments for Americas Natural Gas 27 Frequency Daily Daily Daily Daily Daily Monthly Monthly Monthly Monthly Daily Category >Natural gas>North America>East >Natural gas>North America>East >Natural gas>North America>East >Natural gas>North America>East >Natural gas>North America>East >Natural gas>North America>East >Natural gas>North America>East >Natural gas>North America>East >Natural gas>North America>East >Natural gas>North America>East Unit USD/ mnBtu No unit mnBtu USD/ mnBtu USD/ mnBtu USD/ mnBtu USD/ mnBtu No unit mnBtu USD/ mnBtu Description Natural gas hub Clarington day-ahead Index Natural gas hub Clarington day-ahead no of trades Natural gas hub Clarington day-ahead traded volume Natural gas hub Clarington day-ahead Natural gas hub Clarington day-ahead mid-range Natural gas hub Clarington bid week Natural gas hub Clarington Index bid week Natural gas hub Clarington no of trades bid week Natural gas hub Clarington traded volume bid week Natural gas hub Clarington everyday Index Continuous forward 0 0 0 0 0 1 1 1 1 0 Price type 3, 4 8 29 1, 2 1, 2 1, 2 4 8 29 4 Time stamp 2 2 2 2 2 2 2 2 2 2

PA-code PA0007705 PA0007707 PA0007708 PA0007709 PA0007710 PA0007839 PA0007840 PA0007841 PA0007842 PA0008965 December 2014 See the original announcement. folder on ftp.argusmedia.com: publication. These changes apply to the data files in the dnga in the DNGA dnga in the files in the to the data changes apply These publication. Americas Argus Natural Gas Natural Gas the Argus codes from removed several Argus 1, 2014, On December Argus Removes AssessmentsArgus Removes from Gas Natural Argus Americas Natural Gas 28

New Description Butane refinery grade Mt Belvieu LST month Butane refinery grade Mt Belvieu LST VWA month New Description Butane refinery grade Mt Belvieu LST month Butane refinery grade Mt Belvieu LST wet Butane refinery grade Mt Belvieu LST MTD average wet Butane refinery grade Mt Belvieu LST MTD average month Butane refinery grade Mt Belvieu LST VWA month Butane refinery grade Mt Belvieu LST MTD VWA month Old Description Butane Mt Belvieu LST (LDH) month Butane Mt Belvieu LST (LDH) Butane Mt Belvieu LST VWA month Old Description Butane Mt Belvieu LST (LDH) month Butane Mt Belvieu LST (LDH) wet Butane Mt Belvieu LST MTD average wet Butane Mt Belvieu LST MTD average month Butane Mt Belvieu LST VWA month Butane Mt Belvieu LST MTD VWA month

PA-code PA0000376 PA0003271 PA0006718 PA0006719 PA0008796 PA0008832 PA-code PA0000376 PA0008796 December 2014 See the original announcement. Descriptions for the following codes have been updated: changes apply to data found in the dngl files in the DNGL folder of ftp.argusmedia.com. changes apply to data found in the dngl files in the Argus Updates Codes forArgus Argus NGL Updates Americas Feed Data Argus NGL Americas data feed. These Effective December 5, 2014, Argus updated the See the original announcement. been updated: the \DLPG folder of ftp.argusmedia.com. Descriptions for the following codes have have Descriptions for the following codes the \DLPG folder of ftp.argusmedia.com. according approval from both the Clearing House ECC and their Clearing Member. both the Clearing House ECC and their Clearing according approval from in to data found in the dpgus and dpg data files LPG data feed. These changes apply Data Feed Data Argus has made changes to the Argus International Effective December 5, 2014, Argus Changes DescriptionsArgus LPG Changes for Argus International ask to trade TTF Spot or Futures with no additional costs, provided they have the no additional costs, provided TTF Spot or Futures with ask to trade See the original announcement. Initial benefits in terms of membership concern the TTF hub: all PEGAS members can all PEGAS members concern the TTF hub: in terms of membership Initial benefits Powernext gas trading systems was performed on January 5, 2015. on January 5, trading systems was performed Powernext gas The technical switch of the current EEX gas products into Powernext products within all products within gas products into Powernext switch of the current EEX The technical are now operated under the Powernext rulebook. under the Powernext are now operated Effective January 1, 2015, Powernext has become part of the European of the European part has become 2015, Powernext January 1, Effective platform the PEGAS available on markets All Natural Gas Group. Exchange (EEX) Energy PEGASEEX Migrates Business Gas Natural to Powernext Natural Gas 29 Butane refinery grade MT Belvieu LST monthly avg New Description Butane MT Belvieu LST (LDH) monthly avg Old Description

PA000049 PA-code December 2014 See the original announcement. The description for the following code will be updated: The description for the following ftp.argusmedia.com. module. These changes apply to the data files in the drlpg data files in the \DRLPG folder on folder \DRLPG apply to the data files in the drlpg data files in the module. These changes data made changes to the Argus Russian LPG and Condensate On December 5, 2014, Argus Data Module Data Condensate Argus Updates DescriptionArgus in Argus Russian Updates LPG and Coal

Platts to Publish CME Open Interest for US OTC Coal On December 15, 2014, Platts announced a proposal to publish the open interest listed by the CME Group for the front-month CAPP barge, CAPP rail (CSX) and PRB 8,800 Btu/lb coal futures contracts, as well as the total open interest for the contracts, in the daily OTC Broker Index table in Platts Coal Trader. The open interest data will be lagged one day because it is only available after Platts Coal Trader’s daily publishing deadline. See the original announcement.

ZEMA collects nearly 150 data reports on coal. For more information, visit http://www.ze.com/the-zema-solutions/.

The ZEMA graph below illustrates the change in the average weekly production of coal in the US from November 2009 until December 2014. Ranging from approximately 14.5 Mt to 20.0 Mt, production had the most volatility during the period 2010-2012 within the last five years. This data is retrieved from an EIA report.

© Graph created with ZEMA

December 2014 30 Coal 31 Frequency Weekly Weekly Destination Isdemir, Turkey Category >Coal>A- sia-Pacific >Coal>A- sia-Pacific Origin Hampton Roads Description Metallurgical Coke 62% CSR fob north China Metallurgical Coke 65% CSR fob north China Continuous forward 0 0 Coal Type Price type 8 8 Time stamp 8 8

PA-code 70,000 mt Size Cargo PA0015305 PA0015306 Panamax size series: December 2014 On November 24, 2014, in the same publication, Argus introduced the following Coal Argus introduced the following On November 24, 2014, in the same publication, See the original announcement. the DSteelFeedstocks module in the DSteelFeedstocks folder on ftp.argusmedia.com: the DSteelFeedstocks module in the DSteelFeedstocks publication and data module. The following PA codes can be found in Argus Steel Feedstocks publication and data module. The following PA codes Effective December 4, 2014, Argus added two new price series to the Effective December 4, 2014, Argus added two new Publication Feedstocks Series to Argus Steel Argus Introduces Metallurgical New Price Coke ZEMA collects over 20 different coal record from Platts alone. To gain more informed insight regarding Platts’s new coal gain more informed insight regarding Platts’s ZEMA collects over 20 different coal record from Platts alone. To more, visit http://www.ze.com/the-zema-solutions/. assessment, view ZEMA’s Platts records and coal records. To learn dollar per metric ton basis. See the original announcement. This new assessment is based on modern Panamax dry bulk tonnage, and is published on a is published on modern Panamax dry bulk tonnage, and This new assessment is based established trade route of coal: established trade route of for Coal Trade Route for Coal Trade an for launched a new dry bulk Panamax freight assessment On December 1, 2014, Platts as to the direction of the final monthly settle for both prices. as to the direction of the Platts Launches Dry New Bulk Panamax Assessment through the course of the referenced period, providing market participants with more visibility with more referenced period, providing market participants through the course of the See the original announcement. The front-month and front-quarter averages will show the direction of the underlying prices of the underlying will show the direction and front-quarter averages The front-month assesses in the OTC Broker Index table in Platts Coal Trader. the OTC Broker Index table assesses in month and front-quarter prices for each of the five over-the-counter coal products it currently coal products of the five over-the-counter prices for each month and front-quarter Platts OTC to Publish US Quarter Coal Front-Month, Averages front- a daily average of the that it will publish 15, 2014, Platts announced On December Coal 32 Frequency Daily Daily Frequency Daily Daily

Category >Coal>Asia- Pacific >Coal>Asia- Pacific Category - >Freight>Coal>A sia-Pacific - >Freight>Coal>A sia-Pacific New Description size east coast Australia - Coal panamax Japan size east Australia - Coal panamax South Korea - Coal panamax size Indonesia east coast - south China Coal panamax size Indonesia Description Coal landed cost EC Australia - S China 5500kcal Coal landed cost EC Australia - EC India 5500kcal Description Coal panamax size Coal panamax – China Australia size Coal panamax Australia – India Continuous forward 0 0 Continuous Continuous forward 0 0 Price type 8 8 Price Price type 20 20 Old Description Coal panamax size Australia - Japan Coal panamax - South Korea Coal panamax size Australia - India Coal panamax size Indonesia - China Coal panamax size Indonesia Time stamp 0 0 Time Time stamp 0 0

PA-code PA0015282 PA0015283 PA-code PA0004601 PA0004602 PA0005195 PA0010590 PA-code PA0015189 PA0015190 publication and data module. These changes apply to the dfr1 files in the DFR publication and data module. These changes apply on ftp.argusmedia.com. December 2014

Effective November 24, 2014, Argus added two new series to the Argus Freight Effective November 24, 2014, Argus added two Argus Freight http://www.ze.com/the-zema-solutions/. Argus Introduces Coal-Based New Assessments to ZEMA collects more than a dozen data reports on coal from Argus alone. To learn more, visit ZEMA collects more than a dozen data reports on coal from Argus See the original announcement. . These changes apply to the dci files in the DCOAL folder on ftp.argusmedia.com. International. These changes apply to Daily International 2014, Argus added the following series to Argus Coal Daily Effective, November 24, Argus Coal Adds New Assessments to Argus Coal See the original announcement. As well, in the same publication, the following series has been renamed: following series has been same publication, the As well, in the Coal 33 Frequency Daily Daily Frequency Daily Daily Daily Daily Daily Daily Category - >Freight> Coal>Asia- Pacific >Freight>- Coal>Asia- Pacific >Coal>Asia- Pacific >Coal>Asia- Pacific >Coal>Asia- Pacific >Coal>Asia- Pacific >Coal>Asia- Pacific >Coal>Asia- Pacific Category Unit USD/t USD/t Description size Coal panama Australia – China size Coal panama Australia – India Coal delivered cost Australia - Japan Coal delivered cost Australia - S Korea Coal delivered cost Indonesia - Japan 6500kcal Coal delivered cost Indonesia - Japan 5800kcal Coal delivered cost Indonesia - S Korea 5800kcal Coal delivered cost Indonesia - S Korea 5000kcal Description Continuous Continuous forward 0 0 0 0 0 0 0 0 Continuous forward Price type 20 20 8 8 8 8 8 8 Price type Time stamp 0 0 0 0 0 0 0 0 Time stamp

PA0004665 PA0004666 PA0004669 PA0004671 PA0004672 PA0004674 PA-code PA-code PA0015189 PA0015190 December 2014 on ftp.argusmedia.com. . These changes apply to the dci files in the DCOAL folder Daily International. These changes apply to the dci files in the DCOAL On November 24, 2014, Argus made the following changes to the Argus Coal On November 24, 2014, Argus made the following The affected code is CTMM001. Argus Codes Revises for Argus Coal Daily International sulfur Central Appalachia thermal coal, as the spread was envisioned to illustrate. illustrate. thermal coal, as the spread was envisioned to sulfur Central Appalachia See the original announcement. Due to evolving market conditions, Platts believes there is no longer a premium for low low for Platts believes there is no longer a premium Due to evolving market conditions, in PlattsCoal Trader. CAPP 1% vs. Compliance coal spread, currently listed in the daily OTC Broker Index table table Index coal spread, currently listed in the daily OTC Broker CAPP 1% vs. Compliance Coal Spread the listing announced that it is proposing to discontinue On December 8, 2014, Platts Platts Proposes CAPP Discontinuing 1% vs.Compliance See the original announcement. The following series have been added: been have series following The Coal 34 Frequency Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Category >Coal> Asia-Pacific >Coal> Asia-Pacific >Coal> Asia-Pacific >Coal> Asia-Pacific >Coal> Asia-Pacific >Coal> Asia-Pacific >Coal> Asia-Pacific >Coal> Asia-Pacific >Coal> Asia-Pacific >Coal> Asia-Pacific >Coal> Asia-Pacific >Coal> Asia-Pacific >Coal> Asia-Pacific Description cost Coal delivered - India Indonesia 4200kcal cost Coal delivered Indonesia - India 3400kcal cost Coal delivered Indonesia -China 5800kcal Coal delivered cost Indonesia -China 5000kcal Coal delivered cost Indonesia -China 4200kcal Coal Australia loading delays Coal panamax size Aus- tralia - Japan inc delays Coal panamax size Indonesia - Japan inc delays Coal panamax size Indonesia - South Korea inc delays Coal panamax size Australia - South Korea inc delays Coal panamax size Indonesia - India inc delays Coal panamax size Indonesia - China inc delays Coal panamax size Aus- tralia - Japan inc delays 0 0 0 0 0 0 0 0 0 0 0 0 0 Continuous Continuous forward 8 8 8 8 8 8 20 20 20 20 20 20 20 Price Price type 0 0 0 0 0 0 0 0 0 0 0 0 0 Time Time stamp PA0005487 PA0009548 PA0010592 PA0010594 PA0010596 PA0004607 PA0002599 PA0003074 PA0003075 PA0004425 PA0005196 PA0010591 PA0002599 PA-code December 2014 See the original announcement. Coal 35

New Listing Schedule Monthly contracts for the current year plus the next two calendar years Current Listing Schedule Monthly contracts for the current year plus the next full calendar year Clearing Code MCC Rule Chapter 294

Contract Name Indonesian Coal (McCloskey sub-bituminous) Futures December 2014 See the original announcement. two calendar years as follows: The new listing schedule for all trading and clearing venues is for the current year plus the next plus year for all trading and clearing venues is for the current The new listing schedule floor, and for submission for clearing through CME ClearPort. floor, and for submission code MCC) for trading on CME Globex and the New York Mercantile Exchange (NYMEX) trading (NYMEX) CME Globex and the New York Mercantile Exchange code MCC) for trading on Indonesian Coal (McCloskey sub-bituminous) Futures contract (chapter 294, commodity commodity sub-bituminous) Futures contract (chapter 294, Indonesian Coal (McCloskey Effective December 21, 2014, CME Group expanded the listing schedule for the 2014, CME Group expanded the listing schedule Effective December 21, Coal Futures Contract CME Group Expands Contract Month Listing for Indonesian Softs and Metals

SOFTS Platts Launches Supramax, Handysize Dry Bulk Assessments Effective December 1, 2014, Platts launched a number of new dry bulk Supramax and Handysize freight assessments, reflecting established trade routes of grain, scrap, and petcoke from the UK Continent, Baltic, US Gulf Coast, US East Coast, and Black Sea. The launch of assessments for these routes follows feedback to a Platts proposal, published October 3, 2014. Platts will launch the following assessments for all routes proposed, except for a 25,000 mt steam coal route from Yuzhny, Ukraine, to Iskenderun, Turkey, which Platts will continue to review. These new assessments reflect strong market interest in these routes and will be based on Supramax and Handysize dry bulk tonnage: Size Cargo Type Origin Destination 45kt Scrap Riga Aliaga, Turkey 25kt Scrap Rotterdam Aliaga, Turkey 45kt Scrap Rotterdam Aliaga, Turkey 45kt Scrap New Jersey Aliaga, Turkey 50kt Petcoke Houston Aliaga, Turkey 50kt Grain New Orleans Kashima, Japan 50kt Grain New Orleans Alexandria, Egypt 25kt Grain Nikolaev Alexandria, Egypt

See the original announcement.

ZEMA collects multiple Platts records, including agricultural data. To gain more informed insight on this market, view ZEMA’s Platts records. To learn more, visit http://www.ze.com/the-zema-solutions/.

Platts Launches New Dry Bulk Panamax Assessment on Grain Trade Routes Effective December 1, 2014, Platts launched a number of new dry bulk Panamax freight assessments reflecting established trade routes of grain from the US Gulf Coast and the Black Sea.

December 2014 36 These new assessments reflect strong market interest in these routes and are based on Softs and Metals modern Panamax dry bulk tonnage. Each assessment is published on a dollar per metric ton basis. The assessments are as follows: Size Cargo Type Origin Destination 60,000 mt Grain New Orleans Qingdao, China 60,000 mt Grain New Orleans Fangcheng, South China* 60,000 mt Grain New Orleans Alexandria, Egypt 60,000 mt Grain Odessa Dammam, Saudi Arabia 60,000 mt Grain Odessa Alexandria, Egypt *This is a differential to the New Orleans-Qingdao value. See the original announcement.

Argus Introduces Month Averages to Fertilizer Index On November 28, 2014, Argus added new month averages to its fertilizer index. The following PA code details can be found in the DFertilizerIndex module in the /DFertilizerIndex folder on ftp.argusmedia.com. Time Price Continuous PA-code Description Category Frequency stamp type forward Urea prilled fob Yuzhny In- PA0015311 0 17 0 >Fertilizer>Urea Monthly dex current month average Urea granular bulk fob PA0015312 0 17 0 Egypt Index current month >Fertilizer>Urea Monthly average Urea granular bulk fob PA0015313 0 17 0 NOLA Index current month >Fertilizer>Urea Monthly average Urea prilled bulk fob China PA0015314 0 17 0 Index current month >Fertilizer>Urea Monthly average Urea granular bulk fob PA0015315 0 17 0 Middle East Index current >Fertilizer>Urea Monthly month average Urea granular bulk cfr Brazil PA0015316 0 17 0 Index current month >Fertilizer>Urea Monthly average DAP fob Tampa Index PA0015317 0 17 0 >Fertilizer>Urea Monthly current month average DAP fob NOLA Index current PA0015318 0 17 0 >Fertilizer>Urea Monthly month average UAN 32 fob NOLA Index >Fertilizer> PA0015319 0 17 0 Monthly current month average Nitrogen

December 2014 37 Softs and Metals Time Price Continuous PA-code Description Category Frequency stamp type forward UAN 32 cfr US east coast >Fertilizer> PA0015320 0 17 0 Index current month Monthly Nitrogen average

See the original announcement.

ZEMA collects multiple data reports on fertilizer. To find out more, visit http://www.ze.com/the-zema-solutions/.

ICE to Issue New Sugar and Cotton Contracts for ICE Futures Singapore and ICE Clear Singapore On March 17, 2015, Intercontinental Exchange (ICE) will list two new futures contracts, which will be among the first to be listed for trading and clearing at ICE Futures Singapore and ICE Clear Singapore, subject to regulatory approval from the Monetary Authority of Singapore (MAS). The products include the following regional futures contracts: • Chinese Cotton No.1 futures • Chinese White Sugar futures Both contracts will be cash settled. ICE selected these contracts following feedback from market participants, which emphasized the regional significance of hedging and trading each contract to local market participants. These new futures contracts will complement ICE’s existing portfolio of benchmark contracts, which includes ICE’s Sugar No.11, White Sugar, Cotton No.2, as well as the soon to be launched World Cotton contract. ICE Trade Vault, LLC has submitted a foreign trade repository application to MAS, which will further support market participants’ compliance with regulatory reform in the region. See the original announcement.

EEX to Extend Portfolio by Introducing Agricultural Products Effective May 11, 2015, the European Energy Exchange (EEX), in cooperation with its clearing house European Commodity Clearing (ECC), will extend its product range to agricultural products, which are currently listed on Eurex Exchange. The agricultural products listed on the Eurex Exchange will be delisted and simultaneously set up under the same conditions at EEX, subject to approval by the EEX Exchange Council. The migration of the existing Open Interest for agricultural products to the clearing house ECC is planned for May 8, 2015 after the end of trading. The launch of the new products at EEX is then planned for May 11, 2015. With this step, EEX extends its product portfolio and provides clients with access to further commodity derivatives. Eurex Exchange members will need to become EEX members

December 2014 38 to access EEX agricultural products from May 2015 onwards. A new EEX membership Softs and Metals category “Agricultural Products” will be introduced with the launch of the new product segment at EEX. This membership category will be offered without any annual fees. Product details are as follows: Group Contract Volume Min. Price Tick Notation Butter Futures Skimmed Milk Price Quotation is in points. The 5 metric tons In EUR per Powder Mini-mum Price Change is 1 point, metric ton European Whey equivalent to a value of EUR 5. Powder Futures The Price Quotation is in points with European 250 quintals (25 one decimal place. The Minimum Price Processing Potato In EUR per 100 kg tons) potatoes Change is 0.1 points, equivalent to a Futures value of EUR 25. The Price Quotation is in points with 8,000 kg slaughter three decimal places. The Minimum Price Hog Futures In EUR per kg weight Change is 0.001 points, equivalent to a value of EUR 8. The Price Quotation is in points with one decimal place. The Minimum Price Piglet Futures 100 piglets In EUR per piglet Change is 0.1 points, equivalent to a value of EUR 10. Products are technically set up at Eurex T7. Dependent on individual requirements, customers can select the optimal solution from various front-end alternatives. With the launch of agricultural products at EEX, the new EEX Direct Screen TT will be available at a special rate. See the original announcement.

ZEMA collects a wide range of European energy market data, including over 30 records from the EEX. These records include futures price and trading data. To learn more, visit http://www.ze.com/the-zema-solutions/.

Euronext to Launch Dairy Complex In spring 2015, Euronext will launch a dairy derivatives complex. The full suite of futures and options will cover the three key dairy products currently traded in Europe and internationally: butter, skimmed milk powder, and whey powder. This will allow the European dairy community to hedge its exposure to price fluctuations in this volatile market, just as the milk quotas expire in the European market. This launch is subject to relevant regulatory review. On 31 March 2015, milk quotas, originally initiated under the EU’s Common Agricultural Policy, will expire leading to liberalization of production and potential increased volatility in the European dairy industry. In addition, global demand for milk is increasing while supply chains can be unpredictable. Within this context this new product complex will allow the industry to manage their risk more smoothly in a transparent, regulated and liquid market. See the original announcement.

December 2014 39 Softs and Metals Platts to Delist Northwest European SME Biodiesel Assessments Effective May 30, 2015, Platts will discontinue its assessment for Northwest European SME biodiesel, holding no proof sustainability under the EU’s Renewable Energy Directive. This assessment corresponds with oracle code AAUCB00 and is published in the Platts database and on Biofuelscan. The weekly (AAUCB03) and monthly (AAUCB04) averages will also be discontinued. The assessment will be discontinued following a period of feedback beginning January 31, 2014. See the original announcement. MGEX to Modify Apple Juice Concentrate Futures Contract Effective March 2015, MGEX, a designated contract market and derivatives clearing organization, is planning to modify its Apple Juice Concentrate (AJC) futures and options contract specifications, pending review from the Commodity Futures Trading Commission (CFTC). The modification will increase the product’s malic acid range from 1.0 – 2.2% to 1.0 – 3.5%. This increased range is more representative of what is currently trading in the US cash market and also aligns with what is normally produced in Europe. Pending CFTC review, the change will be effective for the March 2015 futures contract month and all subsequent contract months. Consequently, any trade executed for the March 2015 contract and each subsequent contract month is subject to the proposed contract specification change. MGEX launched its AJC contract back in August 2012. See the original announcement.

METALS Platts Launches Turkey ARC Steel Tracker Data On December 1, 2014, Platts launched a new series of daily data analysis identifying price trends and price direction in the Turkish rebar, billet and scrap markets. The Platts Turkey ARC Steel Tracker (Turkey ARC) has been designed to analyze price relationships of inputs and outputs to regional electric arc furnaces and rolling mills, and daily index and monetary values are proposed for each commodity and the market. In total, there are two daily Turkey ARC indexes published apiece for rebar, billet and ferrous scrap (HMS 80:20), based on 30-day moving average and 60-day moving averages. There are also monthly averages for the data. In addition, corresponding monetary values for each index have been published, using Platts price assessments to base these on.

December 2014 40 A market direction metric, indicating daily overall price movement of the ARC commodities, Softs and Metals and a composite index for the industry is also available. As well data will be published in Steel Markets Daily, Steel Price Report, and Steel Raw Materials Monthly. See the original announcement.

ZEMA collects numerous Platts records and over 70 records about metals. To learn more about the metals records ZEMA collects, visit http://www.ze.com/the-zema-solutions/data-coverage/.

Platts Launches New Dry Bulk Panamax Assessments on Iron Ore Trade Routes Effective December 1, 2014, Platts launched a number of new dry bulk Panamax freight assessments reflecting established trade routes of iron ore. The launch of assessments for these routes follows feedback to Platts’ proposal, published on October 3, 2014. Platts launched assessments for all routes proposed, except for a 70,000 mt, iron ore route from Sao Luis, Brazil to Rotterdam, Netherlands, which Platts will continue to review. The assessments are as follows: Size Cargo Type Origin Destination 70,000 mt Iron ore Port Cartier Rotterdam, Netherlands 70,000 mt Iron ore Tubarao Rotterdam, Netherlands 80,000 mt Iron ore Tubarao Qingdao, China These new assessments reflect strong market interest in these routes and will be based on modern Panamax dry bulk tonnage. Each assessment is published on a dollar per metric ton basis. See the original announcement.

This ZEMA graph below illustrates Iron Ore Futures Settlement Pricing from December 2014 until December 2016, with a forecast date of December 22, 2014. Pricing ranges from just below $64 USD/t in November 2014 to $69 USD/t in December 2014. This data is collected from forward curve analyses from a CME data report.

© Graph created with ZEMA

December 2014 41 Softs and Metals 42

December 2014 (Pound Sterling), based on the product design of Eris’ US dollar-denominated Eris Standard Eris’ US dollar-denominated Eris (Pound Sterling), based on the product design of ICE Futures Europe will list interest rate swap futures denominated in EUR (Euro) and GBP denominated in EUR (Euro) ICE Futures Europe will list interest rate swap futures Alignment Interest. price-based quoting conventions, recognition of credit events, and the inclusion of Price credit events, and the inclusion price-based quoting conventions, recognition of without compromising traditional OTC characteristics, such as five-year tenor, spread and such as five-year tenor, spread without compromising traditional OTC characteristics, to be launched in the first half of 2015, will offer clients the regulatory certainty of futures clients the regulatory certainty of to be launched in the first half of 2015, will offer US and cleared at ICE Clear US, subject to regulatory approval. These CDS futures contracts, approval. These CDS futures US and cleared at ICE Clear US, subject to regulatory Markit CDX North American Investment Grade and High Yield indexes, listed on ICE Futures High Yield indexes, listed on ICE Markit CDX North American Investment Grade and The first product launch under the license agreement will be CDS futures based on the will be CDS futures based on The first product launch under the license agreement futures and European interest rate futures based on the Eris Methodology. futures and European interest rate futures based Under the agreement, ICE is licensing the rights to list European and US credit default swap list European and US credit default Under the agreement, ICE is licensing the rights to product design for constructing swap futures in a capital-efficient manner. product design for constructing swap futures in a exchanges to list futures and options based on the Eris Methodology, Eris’ patent-pending Eris Methodology, Eris’ patent-pending exchanges to list futures and options based on the Effective December 4, 2014, ICE has launched a multi-year license agreement for ICE multi-year license agreement for Effective December 4, 2014, ICE has launched a ICE Launches Futures and European CDS Index Interest Swap Rate further support market participants’ compliance with regulatory reform in the region. with regulatory reform in the region. further support market participants’ compliance ZEMA’s data gold specifically. To learn more about ZEMA collects 75 metal records, many of which contain data about coverage, visit http://www.ze.com/the-zema-solutions/data-coverage/. ICE Trade Vault, LLC has submitted a foreign trade repository application to MAS, which will which to MAS, submitted a foreign trade repository application ICE Trade Vault, LLC has See the original announcement. The contract will be physically settled with delivery in Singapore. The contract will be physically Singapore, subject to regulatory approval from the Monetary Authority of Singapore (MAS). (MAS). Singapore approval from the Monetary Authority of Singapore, subject to regulatory among the first to be listed for trading and clearing at ICE Futures Singapore and ICE Clear and for trading and clearing at ICE Futures Singapore among the first to be listed Fixing Co. to be the new provider of London platinum and palladium prices. Fixing Co. to be the new Singapore Singapore and ICE Clear will be which ICE will list a new one-kilo gold futures contract, Effective March 17, 2015, The London Metal Exchange has been appointed by the London Platinum and Palladium and Palladium has been appointed by the London Platinum The London Metal Exchange ICE to Introduce Gold New Contract for ICE Futures . Metals Alert See the original announcement. and on pages 321, 434, and 437 of Platts 321, 434, and 437 of Daily and on pages Data” page of Platts Metals and Third-Party (AAIUD00) and PM (MMABT10) Palladium Price can be found on the “Exchange-Traded Data on the “Exchange-Traded Price can be found PM (MMABT10) Palladium (AAIUD00) and The London AM (symbol: AAIUE00) and PM (MMAHV10) Platinum Price and London AM Price and London PM (MMAHV10) Platinum AM (symbol: AAIUE00) and The London the former London Platinum and London Palladium AM and PM fixes. Palladium AM and PM Platinum and London the former London and London Palladium Price provided by the London Metal Exchange. These have replaced replaced These have Exchange. London Metal by the Price provided Palladium and London On December 1, 2014, Platts began publishing the twice-daily London Platinum Price Platinum London the twice-daily began publishing Platts 1, 2014, On December Platts London Publishes New Prices Platinum/Palladium Softs and Metals 43

December 2014 market reference. monthly, due to a lack of trading in the spot market and limited interest in the price series as a and limited interest in the price monthly, due to a lack of trading in the spot market Stainless Steel/CR 201 2B 1-2mm/China domestic Foshan (incl. 17% vat) RMB/mt Foshan (incl. 17% vat) RMB/mt Stainless Steel/CR 201 2B 1-2mm/China domestic See the original announcement. On December 1, 2014, Platts discontinued SBB price series: SB01053 On December 1, 2014, Platts discontinued SBB discontinued due to a lack of trading in the spot market. discontinued due to a lack of trading in the spot Platts Delists China Domestic Stainless CR 201 Price pig iron price assessment (SB01173). The Hebei-based assessment in yuan has been been has (SB01173). The Hebei-based assessment in yuan pig iron price assessment See the original announcement. Effective December 1, 2014, Platts has discontinued its monthly China domestic Platts has discontinued its monthly China domestic Effective December 1, 2014, anonymized buy/sell figures. Platts Discontinues China Domestic Iron Pig Price LMEbullion also has a public web presence, providing near real-time auction commentary and commentary web presence, providing near real-time auction LMEbullion also has a public on metals markets. To market on a daily basis; ZEMA also collects over 80 reports ZEMA collects reports from the agricultural data coverage, visit http://www.ze.com/the-zema-solutions/data-coverage/.learn more about ZEMA’s extensive they can view the auction price and each submit their interest until a final price is set. set. price is price and each submit their interest until a final they can view the auction See the original announcement. 9:45 a.m. and 2 p.m. Authorized traders participate through a secure web interface, where interface, traders participate through a secure web 9:45 a.m. and 2 p.m. Authorized LMEbullion provides a fully automated price-discovery process, holding two daily auctions at holding two daily price-discovery process, a fully automated LMEbullion provides platinum and palladium markets. platinum and launched LMEbullion, a custom-built electronic solution to provide reference prices for the reference prices electronic solution to provide a custom-built launched LMEbullion, Effective December 4, 2014, the London Metal Exchange (LME) has successfully has successfully Metal Exchange (LME) 4, 2014, the London Effective December Methodology will be available to clients via the ICE trading platform. the ICE trading to clients via available will be Methodology See the original announcement. LME Launches LBMA Prices Platinum and Palladium Swap Futures and Eris Flex Swap Futures. All ICE swap futures products based on the Eris the Eris on based products futures swap All ICE Futures. Swap Flex Eris and Futures Swap Finance

CME and CBOT Begin Treasury Futures Contracts and Invoice Spreads On December 15, 2014, the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT) began trading intercommodity treasury invoice spreads. These spreads consist of forward-starting Libor-reference interest rate swaps. Details are detailed below.

Minimum Block Trade Threshold – Minimum Block Trade Intercommodity Treasury Invoice Invoice Swap Notional Principal Threshold – Treasury Spread Amount ($ mlns) Futures Contracts

CBOT 2-Year Invoice Spread 460 2,300 CBOT 5-Year Invoice Spread 240 2,400 CBOT 10-Year Invoice Spread 170 1,700 CBOT Treasury Bond Invoice Spread 120 1,200 CBOT Ultra Bond Invoice Spread 120 1,200 CBOT is also notifying the marketplace that it is impermissible to execute contingent block trades in Treasury Invoice Spreads where the minimum thresholds for block trades in outright CBOT Treasury Futures are circumvented. See the original announcement.

ZEMA collects many reports from the Chicago Mercantile Exchange regarding Chicago Board of Trade financial information, including the CBOT Futures daily price report. To learn more about how to transform this collected data into useful market intelligence, visit http://www.ze.com/the-zema-suite/market-analyzer/.

CBOT Launches Treasury Invoice Swaps Effective December 13, 2014, CBOT launched the following new interest rate swap (IRS) products: • Two-Year Treasury Invoice Swaps (Clearing Codes T1A, T2A, T3A) • Five-Year Treasury Invoice Swaps (Clearing Codes F1A, F2A, F3A) • Ten-Year Treasury Invoice Swaps (Clearing Codes N1A, N2A, N3A) • Treasury Bond Invoice Swaps (Clearing Codes B1A, B2A, B3A) • Long-Term Treasury Bond Invoice Swaps (Clearing Codes U1A, U2A, U3A) CBOT Treasury invoice swaps are listed for trading on the CME Globex electronic trading platform (CME Globex) solely in the form of intermarket spreads known as invoice spreads. An

December 2014 44 invoice spread transaction characteristically entails the simultaneous execution of a Treasury Finance invoice swap and the corresponding relevant CBOT Treasury futures contract. Such invoice spreads are listed for trading on CME Globex (Sun-Fri, 5 p.m. to 4 p.m., Chicago time) and are identified by the Clearing Codes cited above. Additionally, market participants may notify the Exchange of block transactions in such invoice spreads via CME ClearPort (Sun-Fri, 5 p.m. to 4:15 p.m., Chicago time). See the original announcement.

ICE to List New Chinese Renminbi Futures Contract for ICE Futures Singapore and ICE Clear Singapore Effective March 17, 2015, Intercontinental Exchange (ICE) will issue a new Chinese Renminbi futures contract, which will be among the first to be listed for trading and clearing at ICE Futures Singapore and ICE Clear Singapore, subject to regulatory approval from the Monetary Authority of Singapore (MAS). The contract will be cash settled. ICE Trade Vault, LLC has submitted a foreign trade repository application to MAS, which will further support market participants’ compliance with regulatory reform in the region. See the original announcement.

ZEMA collects over 130 ICE records, including several financial records. To learn more about how ZEMA can collect, aggregate, and analyze data, book a complimentary ZEMA demonstration now at http://www.ze.com/book-a-demo/.

ICE and Eris Exchange Launches CDS Index and European Interest Rate Swap Futures Effective December 4, 2014, ICE and Eris Exchange, a US-based futures exchange group, today announced a multi-year license agreement for ICE exchanges to list futures and options based on the Eris Methodology, Eris’ patent-pending product design for constructing swap futures in a capital-efficient manner. Under the agreement, ICE is licensing the rights to list European and US credit default swap futures and European interest rate futures based on the Eris Methodology. The first product launch under the license agreement will be CDS futures based on the Markit CDX North American Investment Grade and High Yield indexes, listed on ICE Futures US and cleared at ICE Clear US. These CDS futures contracts, to be launched in the first half of next year, will offer clients the regulatory certainty of futures without compromising traditional OTC characteristics, such as five-year tenor, spread and price-based quoting conventions, recognition of credit events and the inclusion of Price Alignment Interest. See the original announcement.

December 2014 45 Finance Thomson Reuters Launches Malaysian Ringgit and Philippines Peso Trading On December 15, 2014, Thomson Reuters launched the real-time electronic trading of spot and forward Malaysian Ringgit and Philippines Peso on Thomson Reuters Matching platform. The addition of the new currencies to Thomson Reuters Matching means onshore banks now have access to an electronic central limit order book, providing them with more reference on pricing levels of the USD/MYR and USD/PHP pairs. In the Philippines, Thomson Reuters has partnered with the Philippine Dealing System Holdings Corp. & Subsidiaries (PDS Group) to provide the foreign exchange electronic trading platforms to members of the Bankers Association of the Philippines, the association that operates the Philippines’ USD/PHP spot and swap markets. Meanwhile in Malaysia, Bank Negara Malaysia has granted an approval to conduct electronic money-broking services, making Matching the first electronic matching system for USD/MYR. See the original announcement.

ZEMA collects almost 100 records from Thomson Reuters on a daily basis. To learn more, visit http://www.ze.com/the-zema-solutions/data-coverage/.

Thomson Reuters Releases StarMine SmartEconomics Forecast Model On December 8, 2014, Thomson Reuters released StarMine SmartEconomics, a model that generates more accurate forecasts of macroeconomic data and FX rates. This is the first time that Thomson Reuters StarMine has applied its SmartEstimates methodology to economic data and FX rates to help professional investment managers generate investment ideas and mitigate risks. StarMine creates SmartEstimates for approximately 30 FX rates and 700 global economic indicators spanning 50 countries, covering all the major market indicators such as non-farm payrolls, GDP, inflation, retail sales, and many more. For economic indicators, the SmartEstimate is released each time a new poll is conducted, which is typically several days to a week before an expected economic release. SmartEstimates for FX rates are generated at the start of each month, forecasting the FX rate one, three, six, and twelve months out. StarMine SmartEconomics is StarMine’s first model targeting macroeconomics and FX rates, with more macroeconomic models to come. It is provided as a daily data feed from Thomson Reuters, as well as through Thomson Reuters Eikon, the premiere desktop platform for financial professionals. See the original announcement.

December 2014 46 Finance Deutsche Börse Launches New ETF in XTF Segment on Xetra Effective December 12, 2014, Deutsche Börse launched a new equity index ETF issued by Source that is now tradable in the XTF segment on Xetra. The details are as follows: • ETF name: Source S&P 500 UCITS ETF – EUR Hedged • Asset class: equities • ISIN: IE00BRKWGL70 • Total expense ratio: 0.15% • Distribution policy: non-distributing • Benchmark: S&P 500 EUR Hedged Net Total Return Index See the original announcement here.

ZEMA presently collects data from Deutsche Börse about derivatives products. To learn more about how ZEMA can leverage Deutsche Börse market data, visit http://www.ze.com/the-zema-suite/.

Deutsche Börse Launches New SPDR Bond Index on Xetra On December 4, 2014, Deutsche Börse launched a new SPDR ETF that enables investors to participate in the performance of euro-denominated government bonds from the euro zone. The index contains government bonds with an investment grade rating and a residual maturity of between three and five years. The details of the new index are as follows: • ETF name: SPDR Barclays 3-5 Year Euro Government Bond UCITS ETF • Asset class: bond index ETF • ISIN: IE00BS7K8821 • Ongoing charges: 0.15% • Distribution policy: distributing • Benchmark: Barclays 3-5 Year Euro Treasury Bond Index See the original announcement.

Deutsche Börse Launches New UBS Index ETF on Xetra On December 4, 2014, Deutsche Börse introduced a new bond index fund issued by UBS Global Asset Management on liquid US corporate bonds, tradable in the XTF segment on Xetra. The new UBS ETF enables investors to participate in the performance of liquid USD-denominated bonds issued by companies domiciled in the USA. The corporate bonds in the index have an investment grade rating and a residual maturity of between one and five years.

December 2014 47 Details of this new index are as follows: Finance • ETF name: UBS ETF - Barclays US Liquid Corporates 1-5 Year UCITS ETF • Asset class: bond index ETF • ISIN: LU1048314949 • Ongoing charges: 0.18% • Distribution policy: distributing • Benchmark: Barclays US Liquid Corporates 1-5 Year Total Return Index See the original announcement.

ZEMA regularly collects more than 300 finance-related data reports. To learn more, visit http://www.ze.com/the-zema-suite/.

Deutsche Börse Launches PowerShares Equity Index on Xetra On December 1, 2014, Deutsche Börse launched an equity index fund from the ETF offering issued by PowerShares Global Funds. The information for the fund is listed below: • ETF name: PowerShares Global Buyback Achievers UCITS ETF • Asset class: equity index ETF • ISIN: IE00BLSNMW37 • Total expense ratio: 0.39% • Distribution policy: distributing • Benchmark: NASDAQ Global Buyback Achievers NTR Index The PowerShares Global Buyback Achievers UCITS ETF tracks for the first time the performance of the NASDAQ Global Buyback Achievers NTR Index. The reference index comprises companies with a global focus which are listed in the NASDAQ International or NASDAQ US Buyback Achievers Index. Companies must have bought back at least 5% of their outstanding stock over the past twelve months to be considered. See the original announcement.

DCCC Introduces New Indian Rupee Contracts Effective December 19, 2014, the Dubai Commodities Clearing Corporation (DCCC) have included the following products in the list of Inter-Commodity Spread Credit: • Indian Rupee Futures Contract • Indian Rupee Mini Futures Contract See the original announcement.

Develop your own finance market data warehouse using ZEMA’s best-in-class data collection and validation functionalities. To learn more, book a complimentary ZEMA demonstration.

December 2014 48 Finance TriOptima Launches First Cross Currency Swap Compression in USD/Turkish Lira Effective December 17, 2014, TriOptima completed the elimination of $213 billion in the first USD/TRY (Turkish Lira) cross currency swap triReduce compression cycle. Cross currency swaps are subject to both interest rate and foreign exchange rate fluctuations and are not currently cleared. They increase an institution’s credit and capital costs as well as its settlement risk. Since cross currency compression began in April 2014, TriOptima has run eight successful triReduce cross currency swap compression cycles in USD/CAD, USD/EUR, USD/GBP, USD/ JPY, USD/MXN, and USD/ZAR. Additional cross currency compression cycles planned include: Chinese Yuan, Korean Won, and the Russian Ruble. triReduce [sic] compression cycles can accommodate all transaction types whether are float/float or fixed/float, resetting and non-resetting. See the original announcement here.

TriOptima Launches First Compression Cycle for Cleared JPY Interest Rate Swaps Effective December 16, 2014, TriOptima completed the first compression cycle for cleared JPY interest rate swaps in the Japanese Securities Clearing Corporation (JSCC). Fourteen major Japanese and international financial institutions eliminated JPY 9.6 trillion ($82.24 Billion USD) in notional principal in JSCC’s first triReduce multilateral risk-constrained compression cycle. Eliminating notional principal reduces operational risk and contributes to complying with Basel III leverage ratio requirements and overall stability in the global financial system. See the original announcement here.

ZEMA, ZE’s data management solution, excels at displaying time-series data in charts, graphs, forward curves, and more. ZEMA also collects financial derivatives data from a wide range of sources. For further information, visit http://www.ze.com/ the-zema-suite/.

DSE Launches Trading Engine Powered by Nasdaq On December 12, 2014, Dhaka Stock Exchange (DSE) and Nasdaq announced that DSE has gone live with its new trading engine powered by Nasdaq’s X-stream INET technology. This refresh is expected to boost the exchange’s technological capability and capacity and enhance market resiliency. The new system has multi-asset class capabilities on a multi-platform offering. See the original announcement.

December 2014 49 Finance

Nasdaq Lists Validea Market Legends ETF On December 10, 2014, trading began on the Validea Market Legends ETF (symbol: VALX), listed by Validea Capital Management, on the Nasdaq Stock Market. According to Validea Capital, VALX is an actively managed fund that focuses on finding the most fundamentally sound stocks using disciplined investing models based on the strategies of Wall Street legends. The portfolio is comprised of 10 unique investment models, each of which is based on the strategy of an investment legend. The strategies’ investment styles range from value to growth to income- and momentum-based approaches. The combination of different types of investing strategies allows the fund to seek market outperformance, while still setting itself up to perform well in different types of market environments when different investing strategies are in favor. The fund focuses exclusively on the fundamentals when selecting stocks and by employing a disciplined rebalancing approach to ensure that the highest scoring stocks according to the stock selection system remain in the portfolio over time. See the original announcement.

ZEMA collects over 50 NASDAQ OMX records, including financial market records. For further information, visit http://www.ze.com/the-zema-solutions/.

December 2014 50 Finance Euronext Launches the “Euronext Expert Market” On December 9, 2014, Euronext launched the Euronext Expert Market, an electronically traded secondary market offering a transparent and secure platform for the sale of non-listed securities by weekly auction. Based in Belgium, the Euronext Expert Market is classed as a Multilateral Trading Facility and is the first market of its kind to be set up by a European exchange. The Euronext Expert Market replaces the former floor-traded Belgian Public Auctions Market (Marché des Ventes Publiques / Markt van de Openbare Veilingen), migrating from the current open outcry format to electronic trading. The launch of the Euronext Expert Market has been designed to coincide with the last phase of the dematerialization process in Belgium, which will oblige the issuers of physical securities to sell any non-reconciled positions they may have in these securities. See the original announcement.

The ZEMA graph below shows the Bank of Canada’s daily conversion rates of EUR to USD from December 23, 2009 to December 23, 2014. Ranging from a high of $1.5 USD per EUR to a low of $1.19 USD per EUR, volatility was greatest between November 2009 and June 2010. Data was collected from a Foreign Exchange report.

© Graph created with ZEMA

December 2014 51 Finance 52

ISIN: IE00BP9F2J32 ratio: 0.39% Total expense policy: distributing Distribution Name: PIMCO Low Duration Euro Corporate Bond Source UCITS ETF Bond Source UCITS Low Duration Euro Corporate Name: PIMCO

December 2014 October 12, 2014. contract months without open interest was discontinued with immediate effect as of with immediate effect as contract months without open interest was discontinued terms allows for greater initial margin and line item efficiencies for market participants. terms allows for greater initial margin and line item trade with a pre-set fixed rate determined by SIFMA & ISDA. The standardization of product & ISDA. The standardization trade with a pre-set fixed rate determined by SIFMA months, and trading of HKEx will not introduce any new Three-Year EFN contract pre-defined standard terms. They start on IMM (International Monetary Market) dates and Monetary Market) dates pre-defined standard terms. They start on IMM (International Three-Year EFNs. Monetary Authority has stopped issuing MAC swaps were created by SIFMA & ISDA as an over-the-counter swap product with over-the-counter swap product MAC swaps were created by SIFMA & ISDA as an the Note (EFN) Futures because discontinued trading in its Three-Year Exchange Fund CME Group and LCH.Clearnet. and Clearing Limited (HKEx) Effective January 1, 2015, the Hong Kong Exchanges RatesMatch SM. Clearing of these swaps is done via Straight Through Processing STP with via Straight Through Processing RatesMatch SM. Clearing of these swaps is done Futures Note Fund in a Central Limit Order Book (CLOB) on GFI’s electronic trading platform for interest rates, trading platform for interest in a Central Limit Order Book (CLOB) on GFI’s electronic Exchange of Three-Year HKEx Discontinues Trading to four years. for these contracts are available Coupon MAC Swaps on its SEF. Live tradable prices See the original announcement. 10% due to corporate bonds not denominated in euro. The average duration ranges from zero from ranges not denominated in euro. The average duration 10% due to corporate bonds assets can be invested in the emerging markets region. The currency risk may amount to up to may amount the emerging markets region. The currency risk assets can be invested in ETF consists of investment grade corporate bonds issued in euro. Up to 20% of the fund fund of the grade corporate bonds issued in euro. Up to 20% ETF consists of investment via an actively managed ETF. At least 90% of the investment portfolio underlying the active the active ETF. At least 90% of the investment portfolio underlying via an actively managed This ETF enables investors to participate in the performance of corporate bonds issued in euro bonds issued to participate in the performance of corporate This ETF enables investors USD Market Agreed Effective November 25, 2014, GFI Group Inc. launched • • • GFI Launches on RatesMatch MAC USD Swaps • market records. To learn more about ZEMA’s vast data coverage,ZEMA collects over 300 financial ETF on Xetra. The details of the ETF are as follows: of the Xetra. The details ETF on See the original announcement. visit http://www.ze.com/the-zema-solutions/data-coverage/.

On November 28, 2014, PIMCO Fixed Income Source launched a new active a new Source launched Fixed Income 2014, PIMCO 28, On November PIMCO Launches Active New ETFXetra on Finance 53

global benchmark MSCI ACWI Index. member of the MSCI Global Equity Indexes and represents the US equity portion of the the US equity portion member of the MSCI Global Equity Indexes and represents markets. The index consists of 46 country indexes comprising 23 developed and markets. The index consists of 46 country indexes is a performance. The MSCI USA Index to measure large- and mid-cap US equity market the world. The MSCI ACWI is comprised of stocks from both developed and emerging from both developed and emerging the world. The MSCI ACWI is comprised of stocks index that is designed The MSCI USA Index is a free-float-adjusted market-capitalization capitalization-weighted index designed to measure equity-market performance throughout equity-market performance throughout capitalization-weighted index designed to measure 23 emerging market country indexes. The MSCI ACWI Index (All Country World Index) is a free-float-adjusted, market- The MSCI ACWI Index (All Country World Index) is approximately 85% of the free-float-adjusted market capitalization in each country. approximately 85% of the free-float-adjusted market 23 emerging markets countries. With over 800 constituents, the index covers 23 emerging markets countries. With over 800 constituents, The MSCI Emerging Markets Index captures large- and mid-cap representation across and mid-cap representation across The MSCI Emerging Markets Index captures large- disseminated every 60 seconds during market trading hours. disseminated every 60 seconds during market trading East. The MSCI EAFE Index is calculated in US dollars on a real-time basis, and values are on a real-time basis, and values East. The MSCI EAFE Index is calculated in US dollars represent developed markets outside of North America: Europe, Australasia and the Far Europe, Australasia and represent developed markets outside of North America: to measure international equity performance. It comprises the MSCI country indexes that the MSCI country indexes to measure international equity performance. It comprises The MSCI EAFE Index is recognized as the pre-eminent benchmark in the benchmark in the United The MSCI EAFE Index is recognized as the pre-eminent December 2014 • • • • worldwide basis. In total, MSCI’s Indexes are estimated to have over $9.5 trillion benchmarked to them on a them on to are estimated to have over $9.5 trillion benchmarked In total, MSCI’s Indexes ent exposures, as well. - of differ a variety MSCI indexes offer new opportunities to hedge Trading in options on other to efficiently hedge their non-US equity portfolio exposures or to diversify their portfolios. their portfolios. non-US equity portfolio exposures or to diversify to efficiently hedge their MSCI Emerging Markets and EAFE indexes could become valuable tools for investors looking for investors and EAFE indexes could become valuable tools MSCI Emerging Markets Index. CBOE plans to list options on the four other MSCI Indexes later in 2015. Options on Options options on the four other MSCI Indexes later in 2015. Index. CBOE plans to list on two of MSCI’s best-known indexes: the MSCI EAFE Index and the MSCI Emerging Markets Markets Emerging indexes: the MSCI EAFE Index and the MSCI on two of MSCI’s best-known CBOE plans to offer options trading in the first quarter of 2015, pending regulatory approval, approval, trading in the first quarter of 2015, pending regulatory CBOE plans to offer options ex-USA Index. Markets Index, MSCI ACWI Index, MSCI USA Index, MSCI World Index and the MSCI ACWI the MSCI Index, MSCI USA Index, MSCI World Index and Markets Index, MSCI ACWI The six indexes included in the agreement are the MSCI EAFE Index, MSCI Emerging Emerging in the agreement are the MSCI EAFE Index, MSCI The six indexes included for trading on the Chicago Board Options Exchange (CBOE). the Chicago Board Options for trading on the agreement, in the United States, options on the MSCI indexes will be solely listed will be solely listed options on the MSCI indexes in the United States, the agreement, a licensing agreement with MSCI Inc. to offer options trading on several MSCI indexes. Under on several MSCI indexes. to offer options trading with MSCI Inc. a licensing agreement On December 10, 2014, CBOE Holdings Inc. announced that it has entered into it has entered into Inc. announced that 10, 2014, CBOE Holdings On December the respective open positions are closed out, whichever is earlier. whichever are closed out, positions open the respective See the original announcement. EntersCBOE into Agreement with MSCI to List Inc. Options Index Existing contract months with open interest will be available for trading until expiration or all or all expiration until trading for be available will interest open with months contract Existing Finance 54

outside the United States. outside the United markets countries. The index covers approximately 99% of the global equity opportunity set global equity opportunity approximately 99% of the The index covers markets countries. 22 of 23 developed markets countries (excluding the United States) and 23 emerging States) and 23 emerging (excluding the United markets countries 22 of 23 developed The MSCI ACWI ex-USA Index captures large-, mid- and small-cap representation across representation large-, mid- and small-cap ex-USA Index captures The MSCI ACWI each country. the index covers approximately 85% of the free-float-adjusted market capitalization in capitalization market free-float-adjusted 85% of the covers approximately the index markets and 23 emerging market country indexes. With more than 1,500 constituents, 1,500 constituents, more than With country indexes. market and 23 emerging markets The MSCI World Index captures large- and mid-cap representation across 23 developed developed 23 across representation mid-cap and large- captures Index World MSCI The

December 2014 Futures, and Individual Equity Options. Indexes, as well as a comprehensive range of Single Stock Futures, Dividend Adjusted Stock Stock Futures, Dividend Adjusted Indexes, as well as a comprehensive range of Single and options on the FTSE 100 Index, futures contracts on the MSCI World and MSCI Europe on the MSCI World and MSCI and options on the FTSE 100 Index, futures contracts The Liffe equity derivative contracts that were migrated to the ICE platform include futures to the ICE platform include The Liffe equity derivative contracts that were migrated of European interest rate derivatives and soft commodity contracts. of European interest rate derivatives and soft commodity equity derivatives complex transferring to the ICE platform, following the previous migrations platform, following the previous equity derivatives complex transferring to the ICE transition to ICE Futures Europe. The final phase of the Liffe transition was completed with the of the Liffe transition was completed transition to ICE Futures Europe. The final phase the Dutch Central Bank (DNB). Terms were not disclosed. FuturesTransitionICE to EuropeICE Completes Liffe the Liffe futures and options Effective November 24, 2014, ICE has completed supervised in the Netherlands by the Authority by the Authority Financial Markets (AFM) and the Authority Financial Markets supervised in the Netherlands by the Authority by See the original announcement. primary clearing house for the TOM multi-lateral trading facility. HCH is regulated and trading facility. HCH is regulated primary clearing house for the TOM multi-lateral institutional investors. and is the HCH is based in Amsterdam house, to support its comprehensive clearing strategy. expire on December 21, 2014. The shares are offered by way of a private placement to placement 2014. The shares are offered by way of a private expire on December 21, clearing a continental European derivatives investment in the Holland Clearing House (HCH), entered into at the time of the Euronext initial public offering in June 2014, which was due to was due which the Euronext initial public offering in June 2014, entered into at the time of House Clearing its previously announced strategic Effective December 3, 2014, ICE has completed line with its previously announced strategy. ICE received a waiver of the lock-up agreement agreement strategy. ICE received a waiver of the lock-up line with its previously announced ICE Completes Acquisition of Majority in Holland Stake share capital and voting rights. This transaction marks the final exit from Euronext by ICE, in by Euronext rights. This transaction marks the final exit from share capital and voting See the original announcement. Following the sale, assuming all shares are sold, ICE will no longer hold any of Euronext’s of Euronext’s all shares are sold, ICE will no longer hold any Following the sale, assuming by way of an accelerated book-building to institutional investors. by way of an accelerated 4.2 million shares in Euronext NV, representing approximately 6% of Euronext’s share capital, share NV, representing approximately 6% of Euronext’s 4.2 million shares in Euronext On December 8, 2014, ICE announced its intention to sell approximately announced its intention to sell approximately On December 8, 2014, ICE See the original announcement. Shares in EuronextICE Sells Remaining • • Finance 55

Retention of pro-rata, allocation-based matching model for interest rate futures markets matching model for interest pro-rata, allocation-based Retention of self-trade including ICE’s prevention protections, Enhanced wash-trade The transition of Liffe contracts to the ICE platform provides: of Liffe contracts to the The transition prevention functionality

December 2014 re-adjust and maintains the liquidity of a given maturity from 2 to 30 years. re-adjust and maintains the liquidity of a given maturity The contract facilitates the management of interest rate exposure without a constant need to rate exposure without a constant The contract facilitates the management of interest marking the contract to market against an IRSIA Constant Maturity Index on a daily basis. Constant Maturity Index on a daily marking the contract to market against an IRSIA interest rate exposure at each point on the yield curve by removing the expiry date and curve by removing the expiry date interest rate exposure at each point on the yield The CMF is based on the Interest Rate Swap Index Average (IRSIA) and accurately tracks the Average (IRSIA) and accurately The CMF is based on the Interest Rate Swap Index Registration (MTR) service and clearing on Eurex Clearing. Registration (MTR) service and clearing on Eurex denominated Constant Maturity Future (CMF) for trading via Eurex’s Multilateral Trade trading via Eurex’s Multilateral denominated Constant Maturity Future (CMF) for & MGI Sdn Bhd, and KAF-Astley & Pearce Sdn Bhd. Eurex will license GMEX’s Euro- with Global Markets Exchange Group Limited (GMEX). Butler Malaysia Sdn Bhd, First TAZ Tradition Sdn Bhd, Forex Enterprise Sdn Bhd, Harlow’s Bhd, Forex Enterprise Sdn Bhd, Butler Malaysia Sdn Bhd, First TAZ Tradition Sdn AgreementClearing the signing of a license agreement Effective December 11, 2014, Eurex Group announced The money broker community in Malaysia includes Affin Moneybrokers Sdn Bhd, Amanah Affin Moneybrokers Sdn Bhd, The money broker community in Malaysia includes Eurex and and GMEX Futures Trading Swap Sign traded onshore. See the original announcement. ability to make timely trading and investment decisions, with insight into the Malaysian ringgit the Malaysian and investment decisions, with insight into ability to make timely trading Traders, analysts, and institutional investors now have more comprehensive and informed informed and investors now have more comprehensive Traders, analysts, and institutional available on the Bloomberg Professional Service. available on the Bloomberg live Malaysian ringgit (MYR) FX spot and forward prices quoted by the brokers has been made been has FX spot and forward prices quoted by the brokers live Malaysian ringgit (MYR) primary platform for the dissemination of foreign exchange (FX) rates. Under this arrangement, arrangement, this dissemination of foreign exchange (FX) rates. Under primary platform for the which comprises six licensed money brokers in Malaysia, has chosen Bloomberg as its money brokers in Malaysia, has chosen Bloomberg which comprises six licensed Malaysia Money Brokers Money AssociationMalaysia Association, Brokers announced that the Malaysia Money On December 2, 2014, Bloomberg Bloomberg’s FX Technology PlatformBloomberg’s FX Technology Selected by See the original announcement. • • • Repo futures contracts. Repo futures ICE’s flagship US MSCI and Russell index contracts, Eurodollar futures contracts, and GCF contracts, futures Eurodollar index contracts, and Russell US MSCI ICE’s flagship price limit circuit breakers technology and interval risk management Improved pre-trade on the ICE trading platform, these contracts can now be traded side by side on WebICE with WebICE by side on traded side can now be contracts platform, these ICE trading on the With European equity derivatives, interest rate derivatives, and soft commodities now listed listed now soft commodities and derivatives, rate interest derivatives, equity European With Finance 56

December 2014 arrangements, cross-listing agreements, staff exchange, and joint research. arrangements, cross-listing agreements, staff exchange, KRX and DME will also explore other areas of cooperation, including joint marketing including joint marketing KRX and DME will also explore other areas of cooperation, infrastructure and ports. developing large scale oil storage and port facilities to complement its existing petrochemical to complement its existing petrochemical developing large scale oil storage and port facilities See the original announcement. Hub Project in Ulsan, Korea. Ulsan aims to become the energy hub for Northeast Asia by the energy hub for Northeast Hub Project in Ulsan, Korea. Ulsan aims to become with a particular focus on developing an energy trading ecosystem around the National Oil ecosystem around the National with a particular focus on developing an energy trading KRX and DME will work together to develop crude oil futures trading in the Republic of Korea, oil futures trading in the Republic KRX and DME will work together to develop crude helps pave the road for further financial cooperation. oil. contracts and in particular crude promoting the development of commodity futures nations is also being strengthened, and the signing of this MOU between CFFEX and DGCX and DGCX CFFEX and the signing of this MOU between nations is also being strengthened, in (MOU) to strengthen their cooperation (DME) signed a Memorandum of Understanding growing at 10% per annum. Against this backdrop, financial cooperation between the two the between Against this backdrop, financial cooperation growing at 10% per annum. and the Dubai Mercantile Exchange Effective November 24, 2014, Korea Exchange (KRX) fastest growing trade partners over the next twenty years as bilateral trading volume has been has volume over the next twenty years as bilateral trading fastest growing trade partners and DME Announce Cooperation Exchange Korea are constantly growing. According to a recent report, China is expected to be one of the UAE’s of the be one to a recent report, China is expected to are constantly growing. According See the original announcement here. At present, investment and trade flows between China and the United Arab Emirates (UAE) Emirates trade flows between China and the United Arab At present, investment and business strategy, market surveillance, and new product development. business strategy, market China and the Middle East and facilitate cooperation in areas concerning risk management, risk management, and facilitate cooperation in areas concerning China and the Middle East This partnership is intended to strengthen cooperation between the derivatives markets of markets to strengthen cooperation between the derivatives This partnership is intended derivatives exchange in the Middle East. derivatives exchange in the Understanding (MOU) with each other. This is the first MOU that CFFEX has signed with a with signed each other. This is the first MOU that CFFEX has Understanding (MOU) with and Commodities Exchange (DGCX) announced the signing of a Memorandum of of (DGCX) announced the signing of a Memorandum and Commodities Exchange Dubai Gold and Commodities Exchange Dubai Gold (CFFEX) and Financial Futures Exchange 8, 2014, the China Effective December agreements and infrastructure. agreements with MOU China Financial Signs Futures Exchange Euro-denominated CMF under their current membership and benefit from existing clearing from existing and benefit membership their current CMF under Euro-denominated See the original announcement. Clearing. This licensing model will also enable Eurex Exchange members to trade GMEX’s to trade members Eurex Exchange will also enable model This licensing Clearing. GMEX’s trading platform and executed at Eurex Exchange with clearing taking place at Eurex at Eurex taking place with clearing Exchange at Eurex and executed trading platform GMEX’s Under the terms of the arrangement, transactions in CMF contracts will be arranged on be arranged will contracts CMF in transactions arrangement, of the terms the Under Weather and Emissions 57 Frequency Monthly Daily Category >Emissions>NOx >Emissions>NOx Description NOx US seasonal monthly index NOx US seasonal assessments for year Continuous forward 0 1 Price type 1, 2, 8 1, 2, 8 Time stamp 21 21

PA-code PA0002616 PA0002649 See the original announcement. The following codes have been stopped: The following codes have the data files in the duseum data files in the \DADR folder on ftp.argusmedia.com. data files in the \DADR folder on ftp.argusmedia.com. the data files in the duseum . These changes apply to issued changes to Argus Air Daily. These changes apply to On December 2, 2014, Argus Argus Removes EmissionArgus Assessments Removes from Argus Air Daily December 2014 News from Data Vendors

New ZEMA Data Reports – December 2014 For 20 years, ZE PowerGroup Inc. (ZE) has consistently kept up to date on the latest in energy and commodity data changes. ZE collects data from vendors spanning the weather, oil, natural gas, electricity, agriculture, and finance industries, including Platts, Argus, the Chicago Mercantile Exchange, the New York Mercantile Exchange, the Intercontinental Exchange, and OPEC. ZE then provides its clients with access to both public (free subscription) and private data reports, including reports that are collected based on clients’ specific needs. Since the last issue of ZE DataWatch, ZE has added numerous data reports published by EIA, Gestore dei Mercati Energetici (GME), BMRS, NOAA, and SPP. The 10 new EIA reports cover a range of crude oil reports including production, imports, and price movements. This set of new parsers has been developed in response to a growing need for petroleum supply information. The 12 new GME reports were gathered in response to investors’ and traders’ need for more assessment data concerning electricity—from ancillary services to intraday electricity prices. For further information on these reports, visit: • http://www.eia.gov/petroleum/supply/monthly/ • https://www.mercatoelettrico.org/En/Default.aspx • http://www.bmreports.com/ • http://www.noaa.gov/ • http://www.spp.org/ To see the full list of ZEMA data providers, visit http://www.ze.com/the-zema-solutions/ data-coverage/.

December 2014 58 News from Data Vendors

Exchange Council Calls for European-wide Implementation of Reverse Charge Mechanism Vienna / , December 8, 2014. The Exchange Council of EPEX SPOT, at its latest meeting in Vienna, called for the European-wide implementation of the Reverse Charge Mechanism (RCM) in order to battle effectively VAT fraud on European energy markets. The Council also acknowledged the work of the European Power Exchange on improving the Intraday trading availability. The fight against VAT fraud is one of the most crucial, yet challenging tasks of any Exchange and its members. Since its creation, EPEX SPOT has been at the forefront of the European-wide campaign against tax fraudsters and money laundering. In 2013, the European Union adopted an ambitious anti-VAT fraud package, including the possibility for Member States to implement a Reverse Charge Mechanism to qualifying electricity and gas transactions. It moves the obligation for collecting VAT from the seller to the buyer of the goods; this prevents VAT fraud and forestalls significant losses to their Exchequers as well as to affected organizations. A group of ten European gas and electricity associations stated recently that only six EU Member States have transposed this set of legal measures into national law: Austria, France, Germany, the Netherlands, Romania, and the United Kingdom. Hence, 22 EU Member States remain unprotected. The Exchange Council called upon the Member States to implement quickly the RCM across Europe, as VAT fraud poses a significant high-level risk to market participants. “This has the potential to severely damage energy markets integrity”, says Jean-François Conil-Lacoste, Chairman of the Management Board of EPEX SPOT. “Let’s be coherent with the principles that led to implement REMIT throughout Europe!” The role of Intraday trading and its quality gains in importance. Exchange members and the Exchange Council follow closely the development and improvement of Intraday trading. Today, the Intraday trading system ComXerv provides an availability of over 99.5% on yearly average. The teams of EPEX SPOT work hard on further improving this performance, as the quality of a 24/7 trading solution with direct impact on the efficiency of the overall power system is determined by its availability. EPEX SPOT is tackling several topics, thereof: the improvement of the Intraday trading chain via a central Data Transfer Tool, to be deployed in Q1 2015; the roll-out of a new improved ComTrader client which is currently ongoing; a reinforcement of the frequency the trade and flow data is exchanged amongst the links of the Intraday trading chain.

December 2014 59 The European Power Exchange is dedicated to further safeguard Intraday trading. The News from Data Vendors members of the Exchange Council acknowledged the efforts of EPEX SPOT. “Trading participants are eager to see these improvements”, says Peter Heydecker, Chairman of the Exchange Council. “We need to set a strong foundation for the future of power trading, and Intraday is clearly one important cornerstone.” The fourth meeting of the Exchange Council in 2014 was held in Vienna on December 4, 2014, and was chaired by Peter Heydecker. The Exchange Council of EPEX SPOT is an official body of the Exchange. 16 members and 7 permanent guests represent adequately the diversity of economic and corporate profiles that exists among the Exchange Members from various sectors: producers, power trading companies, transmission system operators, regional suppliers and financial service providers, as well as commercial consumers and academics. Its missions include in particular the adoption of the Exchange Rules and the Code of Conduct of EPEX SPOT and their amendments. The Exchange Council approves new trading systems as well as new contracts or market areas and approves the appointment of the Head of the Market Surveillance Office. It meets up quarterly. The European Power Exchange EPEX SPOT SE operates the power spot markets for Germany, France, Austria and Switzerland (Day-Ahead and Intraday). Together these countries account for more than one third of the European power consumption. EPEX SPOT also acts as market operating service provider for the Hungarian Power Exchange HUPX and operates the coupling between the Czech, the Slovak, the Hungarian and the Romanian markets on behalf of the local Exchanges. It is a European company (Societas Europaea) based in Paris with branches in Leipzig, Bern and Vienna. Over 220 companies from Europe are active on EPEX SPOT. 344 TWh were traded on EPEX SPOT’s power markets in the first eleven months of 2014.

December 2014 60 News from Data Vendors 61

December 2014 eleven months of 2014. are active on EPEX SPOT. 344 TWh were traded on EPEX SPOT’s power markets in the first EPEX SPOT’s power markets in are active on EPEX SPOT. 344 TWh were traded on based in Paris with branches in Leipzig, Bern, and Vienna. Over 220 companies from Europe Vienna. Over 220 companies based in Paris with branches in Leipzig, Bern, and markets on behalf of the local Exchanges. It is a European company (Societas Europaea) European company (Societas Europaea) markets on behalf of the local Exchanges. It is a operates the coupling between the Czech, the Slovak, the Hungarian, and the Romanian the Hungarian, and the Romanian operates the coupling between the Czech, the Slovak, also acts as market operating service provider for the Hungarian Power Exchange HUPX and the Hungarian Power Exchange also acts as market operating service provider for countries account for more than one third of the European power consumption. EPEX SPOT European power consumption. countries account for more than one third of the Germany, France, Austria, and Switzerland (Day-Ahead and Intraday). Together these and Intraday). Together these Germany, France, Austria, and Switzerland (Day-Ahead The European Power Exchange EPEX SPOT SE operates the power spot markets for factsheet on the 15-minute Intraday call auction. and creating the most robust possible price reference. More specifications can be found in the specifications More price reference. robust possible the most and creating production and consumption. The auction further fosters this idea by concentrating liquidity fosters this idea by concentrating production and consumption. The auction further remunerate more accurately flexible capacity able to respond to 15-minute variations in to respond to 15-minute variations remunerate more accurately flexible capacity able The already existing 15-minute prices that emerge on the continuous Intraday market on the continuous Intraday market The already existing 15-minute prices that emerge towards German transmission system operators already on the calendar day before delivery. towards German transmission system operators valuable tool for market participants as it will help them fulfilling their balance requirements them fulfilling their balance requirements valuable tool for market participants as it will help held after the day-ahead nomination deadline at 2:30 p.m. in Germany. It will prove to be a 2:30 p.m. in Germany. It will prove held after the day-ahead nomination deadline at consumption. The 15-minute auction is incorporated in the Intraday market segment, as it is in the Intraday market segment, consumption. The 15-minute auction is incorporated contracts at noon and facilitate trading for intra-hour variations in production and variations in production and contracts at noon and facilitate trading for intra-hour 15-minute contracts help fine-tuning portfolios after the Day-Ahead auction for hourly the Day-Ahead auction for hourly 15-minute contracts help fine-tuning portfolios after EPEX SPOT in the framework of the Price Coupling of Regions initiative. EPEX SPOT in the framework The calculation of prices and volumes is performed using Euphemia, a tool co-developed by co-developed and volumes is performed using Euphemia, a tool The calculation of prices The auction runs on the EPEX Trading System (ETS) used for EPEX SPOT’s Day-Ahead markets. markets. Day-Ahead Trading System (ETS) used for EPEX SPOT’s The auction runs on the EPEX 4 p.m., and covers the 96 15-minute contracts for the next calendar day from midnight on. from midnight 15-minute contracts for the next calendar day 4 p.m., and covers the 96 year-round, before the opening of the continuous Intraday market for 15-minute contracts at contracts of the continuous Intraday market for 15-minute year-round, before the opening with the emerging flexibility challenges of power markets. It takes place daily at 3 p.m., p.m., at 3 challenges of power markets. It takes place daily with the emerging flexibility The new 15-minute call auction on the German Intraday market is designed to cope better better to cope on the German Intraday market is designed The new 15-minute call auction price curve and the traded volumes per 15-minute period for the first delivery day. volumes per 15-minute period for the first delivery price curve and the traded expected to join the 15-minute call auction until the end of the year. Please find below the below the find call auction until the end of the year. Please expected to join the 15-minute European Power Exchange (www.epexspot.com). Another five to ten trading participants are participants (www.epexspot.com). Another five to ten trading European Power Exchange MWh. More detailed market data on the first trading day can be found on the website of the the website data on the first trading day can be found on MWh. More detailed market average price of all contracts traded for delivery 10 December – came out at 32.53 Euro/ at 32.53 traded for delivery 10 December – came out average price of all contracts the first auction session today at 3 p.m. 17,690 MW were traded. The base price – the The base price 17,690 MW were traded. session today at 3 p.m. the first auction auction for 15-minute contracts on the German power market. 58 trading participants joined 58 trading participants German power market. contracts on the auction for 15-minute – EPEX SPOT has successfully launched the Intraday call has successfully launched – EPEX SPOT December 9, 2014 Paris / Leipzig, Successful Launch Auction Call in Germany Intraday of 15-Minute News from Data Vendors 62

which provides unlimited access to our thousands of high which provides unlimited access to our thousands ®

December 2014 products include SuperPack expansion of the Speedwell population weighted baskets which now cover over expansion of the Speedwell population weighted insurance, and agriculture. Our data in sectors including weather-risk management, energy, Recent additions to SuperPack include the addition of over 200 regional crop baskets and the and crop baskets include the addition of over 200 regional Recent additions to SuperPack and the USA we serve clients world-wide software, and consultancy. From offices in the UK Weekly Statistics Extractor, the Analogue Years Calculator and the Index Calculator Tool. Calculator the Analogue Years Calculator and the Index Weekly Statistics Extractor, weather data, weather forecasts, Founded in 1999, Speedwell Weather provides quality directly from the Speedwell web site and access a number of tools including the Monthly/ the web site and access a number of tools including directly from the Speedwell About Speedwell Weather database using our own API or delivered via ZE. Non ZEMA users can also download data data download API or delivered via ZE. Non ZEMA users can also database using our own to our data in Brazil, Argentina, and Colombia. or website direct to client servers, requested from our Weather data can be delivered additions continues to grow with recent observations in the USA. Coverage in South America multiple office locations 24-hours per day. multiple office locations 6,000 sites offering hourly temperature hundreds of sites in Australia, and added a further administration of group-wide weather data needs. A single contract covers all users across across all users weather data needs. A single contract covers administration of group-wide for the range of hourly data availability 1,000 sites in Germany alone. We have expanded data and weather data feeds for a single annual fee dramatically simplifying the the for a single annual fee dramatically simplifying data and weather data feeds further Europe, with the addition of a 70 countries. Data density has been increased in Speedwell SuperPack makes available an unprecedented range of quality historical weather weather historical available an unprecedented range of quality Speedwell SuperPack makes 100,000 weather stations. 15,000 weather stations world-wide and on-request access to our secondary archive of over archive world-wide and on-request access to our secondary 15,000 weather stations continues to grow: SuperPack subscribers now have immediate access to over now have immediate grow: SuperPack subscribers continues to and Weather Data Feeds Data and Weather weather data, of large volumes of data package for users the pre-eminent weather SuperPack, Speedwell SuperPack Offers Historical Weather Data Offers Speedwell SuperPack Weather Historical for parametric weather risk contracts world-wide. quality world-wide weather data sets. Speedwell Weather is the dominant settlement agent Weather is the dominant settlement quality world-wide weather data sets. Speedwell News from Data Vendors 63

December 2014 [email protected] Seana Lanigan +44 20 7780 4272 London Contact and a wide range of investment and market analysis purposes. and a wide range of investment and market analysis participants for portfolio mark-to-market, counterparty exposure management, derivatives exposure management, derivatives participants for portfolio mark-to-market, counterparty producers and consumers as price references in long-term supply contracts, and by market long-term supply contracts, and producers and consumers as price references in increasingly adopted throughout the Americas. Argus prices are used by major energy prices are used by major energy increasingly adopted throughout the Americas. Argus contracts around the world. Its transparent price assessment methodology has been assessment methodology has been contracts around the world. Its transparent price Argus’ crude and products price assessments are widely used in physical and derivative widely used in physical and derivative Argus’ crude and products price assessments are steps in the near future.” “We fully expect other growing and liberalizing economies in Latin America to take similar in Latin America to take “We fully expect other growing and liberalizing economies taxation and other purposes,” Argus Media chairman and chief executive Adrian Binks said. and chief executive Adrian taxation and other purposes,” Argus Media chairman “Argus price assessments are used extensively by governments as independent references for governments as independent references “Argus price assessments are used extensively by (SOTE). including 110,000 b/d Esmeraldas, in addition to the Trans-Ecuadorian oil pipeline network to the Trans-Ecuadorian oil pipeline including 110,000 b/d Esmeraldas, in addition next year, according to finance ministry projections. PetroEcuador operates various refineries, PetroEcuador operates various next year, according to finance ministry projections. Ecuador is expected to export more than 400,000 b/d of oil in 2014, rising to 423,000 b/d b/d of oil in 2014, rising to 423,000 Ecuador is expected to export more than 400,000 US using the ASCI price. fellow Opec members Saudi Arabia, Iraq, and Kuwait already price their crude exports to the exports Arabia, Iraq, and Kuwait already price their crude fellow Opec members Saudi transactions that make up the ASCI price are published by Argus on a daily basis. Ecuador’s Ecuador’s basis. the ASCI price are published by Argus on a daily transactions that make up of using international crude price markers that are based on robust transaction volumes. The volumes. price markers that are based on robust transaction of using international crude PetroEcuador’s decision to switch to the ASCI benchmark illustrates the growing relevance relevance to switch to the ASCI benchmark illustrates the growing PetroEcuador’s decision the US Gulf coast market — Mars, Poseidon, and Southern Green Canyon. — Mars, Poseidon, and Southern Green Canyon. the US Gulf coast market The ASCI price reflects the volume-weighted average of three medium sour crudes trading in trading crudes volume-weighted average of three medium sour The ASCI price reflects the formula adjusts for quality and freight. formula adjusts for quality as an element in an innovative formula to calculate a discount to US benchmark WTI. The WTI. formula to calculate a discount to US benchmark as an element in an innovative PetroEcuador´s Oriente and Napo crude term contract prices are using the ASCI benchmark benchmark ASCI and Napo crude term contract prices are using the PetroEcuador´s Oriente American crude exports. American crude exports. ASCI price — a volume-weighted average of US deepwater sour crude deals — to value Latin value — to average of US deepwater sour crude deals ASCI price — a volume-weighted commodity news and price reporting agency Argus. This marks the first consistent use of the the first consistent agency Argus. This marks and price reporting commodity news exports using the Argus Sour Crude Index (ASCITM) published by global energy and (ASCITM) published the Argus Sour Crude Index exports using Opec member Ecuador’s state-owned oil company PetroEcuador has started pricing its crude has started pricing oil company PetroEcuador Ecuador’s state-owned Opec member Opec Member EcuadorOpec Member Adopts ASCI Price for Crude Exports Crude Oil Brent vs. WTI: Prompt-Month Contract (NYMEX) Monthly Market Analysis

© Graph created with ZEMA

On the New York Mercantile Exchange (NYMEX), prompt-month contracts for Brent and Western Texas Intermediate (WTI) crude oil continued to dive for the sixth month in a row to the lowest levels of the past 12 months. By end of day December 17, 2014, the prices of Brent and WTI had both dropped by 16% and 17% respectively from the previous month. Throughout December 2014, prompt-month contracts for Brent dropped below $70 USD/ Bbl to settle at $67 USD/Bbl on December 17, 2014. Meanwhile, the prompt-month contract prices for WTI plunged by $14 USD/Bbl to $63 USD/Bbl. Data from NYMEX future settlements showed that Brent and WTI oil prices traded near four-year lows—Brent and WTI traded at $34 USD/Bbl and $31 USD/Bbl below the last 12-month average. Furthermore, the last 12-month averages for Brent and WTI on NYMEX dropped to $101 USD/Bbl and $94 USD/Bbl, respectively. The Brent-WTI spread (represented by the purple area in the graph above) sat at $3 USD/Bbl this month, which was $4 USD/Bbl below the last 12-month average of $7 USD/Bbl. Global crude benchmarks roughly followed the same story of the past few months: ample supply and lower demand. This month, worries over weakening global demand combined with signals that OPEC producers will not reduce output weighed on prices in the final days of the month. Saudi Oil Minister Ali Al-Naimi commented on OPEC’s reluctance to curb output without the support of other producers and attempts so far at cooperation have failed.1 It is safe to say that crude has entered a bear market amid the record high US output and signs of slow demand. According to the EIA, US crude stockpiles decreased 0.8 million barrels to 379.9 million in the third week of December.2

1 “Naimi: OPEC Needs More Support for Output Cutdown.” CNBC. December 18, 2014. Accessed December 18, 2014. http://www.cnbc.com/id/102280630#. 2 “Weekly Petroleum Status Report Highlights.” Energy Information Administration. December 17, 2014. Accessed December 18, 2014. http://www.eia.gov/petroleum/supply/weekly/pdf/highlights.pdf.

December 2014 64 Crude Oil Brent vs. WTI: Forward Curve (NYMEX) Monthly Market Analysis

© Graph created with ZEMA

On NYMEX, forward curves for Brent and WTI prices fell in the first three weeks of December 2014 for the next 24 months when compared to the same period in November 2014. The average NYMEX Brent forward prices for delivery until January 2017 (represented by the blue line in the graph above) dropped by $12 USD/Bbl to $77 USD/Bbl, while WTI (the red line) fell by $10 USD/Bbl to an average of $66 USD/Bbl for the same delivery period. The Brent-WTI spread also dropped by 22% to $6 USD/Bbl (the purple area) on average for the next 24 months. Demand for imports in the United States has significantly reduced as the country is moving toward energy independence due to the ongoing shale gas & oil boom. As of December 18, 2014, OPEC did not take any action to ease a huge global oversupply as the United States’ surge in shale drilling has lifted United States output to the fastest pace in three decades.3 As a consequence, Brent slid as much as 14% for delivery in the next 24 months on expectations that a global oil-supply glut will continue in the coming months. The market expectations are that crude prices will continue to dive to find equilibrium between supply and demand.

3 Zhou, Moming. “Oil Drops to 5-Year Low on Concern Supply Glut to Worsen.” Bloomberg. December 18, 2014. Accessed December 18, 2014. http://www.bloomberg.com/news/2014-12-17/oil-drops-below-56-as-iran- resists-production-cuts.html.

December 2014 65 North American Natural Gas Spot Prices (ICE) Monthly Market Analysis

© Graph created with ZEMA

On the Intercontinental Exchange (ICE), natural gas prices went down in all the observed North American hubs by the end of December 15, 2014, as is expected for a common seasonal trend. When compared to the first 15 days of December 2014, the prices decreased by 6% in New York’s Transco Zone-6 to $3.81 USD/MMBtu, by 12% in Chicago to $3.79 USD/MMBtu, by 8.6% in Henry Hub to $3.68 USD/MMBtu, and by 9.1% in California’s PG&E Citygate to $4.07 USD/MMBtu. Comparing December 2014 prices to last year’s prices, monthly average gas prices decreased in New York’s Z6, Chicago Citygates, Henry Hub, and PG&E by 17%, 13%, 30%, and 12%, respectively. In the first three weeks of December 2014, Chicago Citygates was the most volatile hub with prices ranging from $3.55 USD/MMBtu on December 8 to $4.60 USD/MMBtu on December 1. For the week ending December 17, 2014, EIA’s “Natural Gas Weekly Update” reported that cold December temperatures boosted natural gas prices.4 According to EIA, working natural gas in storage decreased to 3.3 Bcf as of Friday, December 12 with a net withdrawal from storage of 64 Bcf for the week resulting in storage levels 0.2% above year-ago levels and 7.3% below the five-year average for this week.

4 “Natural Gas Weekly Update—Week Ending November 19, 2014,” U.S. Energy Information Administration, December 17, 2014, accessed December 18, 2014, http://www.eia.gov/naturalgas/weekly.

© Graph created with ZEMA

December 2014 66 Henry Hub Natural Gas Forward Curve (ICE) Monthly Market Analysis

© Graph created with ZEMA

On the ICE, the average price of Henry Hub natural gas contracts in the first three weeks of November 2014 for delivery in the next 12 months (represented above by the orange line) went down by 7% to average at $3.65 USD/MMbtu when compared to the same contracts period in November 2014 (represented by the blue line). Data from ICE suggests the spread between December 2014 - January 2016 contracts (represented by the purple bar) averaged at $0.29 USD/MMbtu for the next 12 months. As the purple bars show, the spread has a trend of slowly decreasing gradually for the next two years. Actual Weather (AccuWeather)

© Graph created with ZEMA

From November 2014 to December 21, 2014, the monthly temperature continued to fall in all observed North American cities due to seasonality. Data from AccuWeather shows Chicago, New York, and San Diego felt colder by 0.17, 5, and 1.76 degrees Celsius (C), respectively, when compared to the previous month. On the other hand, San Antonio was 2.28 degrees Celsius (C) warmer. In first three weeks of December 2014, the average monthly temperatures in the observed North American cities were as follows: San Antonio (15C), Chicago (-4C), New York (1C), and San Diego (17C).

December 2014 67 In December 2014, the two-year average in Chicago, New York, and San Antonio was Monthly Market Analysis lower, while San Diego felt warmer. When comparing the past two-year average of December temperatures, this year’s December felt warmer in Chicago, San Antonio, and San Diego by 0.69, 3.32, and 2.39 degrees, respectively. On the other hand, New York was 1.28 degrees below the two-year average. Once more, Chicago experienced the largest weather fluctuations among all the observed cities, as the temperature reached 7C on December 14 and dropped drastically to -15C on December 1.

© Graph created with ZEMA

Electricity: Day-Ahead Prices (ICE)

© Graph created with ZEMA

On the ICE, electricity day-ahead prices decreased in observed North American ISOs by the third week of December when compared to the previous month. From November 2014 to December 2014, electricity day-ahead prices decreased in CAISO SP-15, ERCOT (Texas), and PJM by 9% to $44.62, 20% to $27.72 USD/MWh, and 11% to $41.27 respectively. Warmer temperatures in the Northeast could be responsible for reducing demand and, consequently, pushing the prices lower compared to the rest of the country. Comparing day-ahead pricing of November 2013 with November 2014, CAISO SP-15, PJM, and ERCOT, increased 14%, 23%, and 22%, respectively.

December 2014 68 In Depth 69

By Peadar Walsh Peadar By

Questions for Data Management Management Data

Gas Markets Raise More Markets Raise Gas With these markets constantly shifting and expanding, management solutions as these solutions as events continue to unfold.management

Converging Power and Natural Converging Natural and Power and is expected to be, a greater reliance to be, and is expected on effective enterprisedata

to mystify analysts. the most seasoned even As a result, there been, has data reportsdata are increasingly becoming complex, the potential has which management (EDM) solutions as these events continue to unfold. management (EDM) solutions as these events continue a result, there has been, and is expected to be, a greater reliance on effective enterprise data greater reliance on effective enterprise a result, there has been, and is expected to be, a increasingly complex, which has the potential to mystify even the most seasoned analysts. As mystify even the most seasoned increasingly complex, which has the potential to With these markets constantly shifting and expanding, data reports are becoming With these markets constantly shifting and expanding, December 2014 and shipping routes will evolve and become more flexible. and shipping routes will evolve and become more cross-border trade among North America, Europe, Asia, and Australia. As such, LNG freight Asia, and Australia. As such, cross-border trade among North America, Europe, Similarly, in the case of the global LNG market, future expansion will result in increased expansion will result in increased Similarly, in the case of the global LNG market, future ease cross-border trade. independent system operators (ISOs) have been expanding in order to enhance reliability and expanding in order to enhance reliability independent system operators (ISOs) have been past few years as a result of market expansion and convergence between practices. Many convergence between practices. past few years as a result of market expansion and The once fragmented US and European power markets have changed significantly over the have changed significantly The once fragmented US and European power markets In Depth 70

December 2014 Figure 1: MISO LMP contour map following integration of the South (Source: MISO) Figure 1: MISO LMP contour map following integration of the South Figure 1 illustrates the effects of convergence on location-based marginal price (LMP) data. location-based marginal price (LMP) Figure 1 illustrates the effects of convergence on the way to Manitoba, Canada. The change in control extends MISO’s operational market footprints from the Gulf of all market footprints from the Gulf The change in control extends MISO’s operational four-state region of the electric grid across the South into its existing footprint in the Midwest. into its existing footprint in the four-state region of the electric grid across the South for a large portion of the , completed the integration of a of Midwestern United States, completed the integration for a large portion of the On December 18, 2013, the Midcontinent Independent System Operator Inc. (MISO), the RTO the Inc. (MISO), the Midcontinent Independent System Operator On December 18, 2013, those located in the Midwestern and Southwestern interconnections. those located in the Midwestern existing tools and processes have been taken on by several system operators, especially by especially have been taken on by several system operators, existing tools and processes Initiatives to eliminate connections in interconnected grids through modifications of the of the in interconnected grids through modifications Initiatives to eliminate connections MISO Is Constantly Extending its Footprint MISO Is Constantly Extending differentials and improved price transparency. differentials and improved economic direction of energy flows between market areas and to bring flatter regional price regional flows between market areas and to bring flatter economic direction of energy These consolidations are seen as a strategic combination of assets and skills to improve to improve seen as a strategic combination of assets and skills These consolidations are electricity market into a single entity. electricity market into a single and regional transmission organizations (RTOs) as well as with the unification of the European the unification of (RTOs) as well as with transmission organizations and regional prominent, however, in 2013 and 2014 with the wave of mergers among North American ISOs among North American with the wave of mergers in 2013 and 2014 prominent, however, mid-1990s and, more progressively, in Europe in the early 2000s. The trend became more The trend became in Europe in the early 2000s. more progressively, mid-1990s and, This phenomenon has been occurring since the deregulation of US electricity markets in the of US electricity markets since the deregulation has been occurring This phenomenon neighboring markets. neighboring through organized marketplaces and the realignment of practices along interfaces among interfaces practices along of and the realignment marketplaces organized through towards Convergence expansion transition of a are undergoing electricity markets European American and North North American European and Markets Moving Power In Depth 71

2

1

3 Dec. 1, 2009 1, Dec. 2010 1, Dec. 2011 1, Dec. 2012 1, Dec. 2013 1, Dec. 2014 1, Dec. 0 MISO Day-AheadMISO Market LMPs 2000 4000 6000 8000 Heartland Consumers Power. Area Power Administration’s Upper Great Plains, Basin Electric Power Cooperative, and Basin Electric Power Cooperative, Area Power Administration’s Upper Great Plains, will span the Eastern and Western connections of the US electric grid to include the Western the US electric grid to include the will span the Eastern and Western connections of footprint. SPP will more than double the size of its footprint to include three new members that footprint to include three new footprint. SPP will more than double the size of its Commission’s (FERC) approval to expand the size of the Southwest Power Pool’s (SPP) of the Southwest Power Pool’s Commission’s (FERC) approval to expand the size Another major expansion occurred on November 10, 2014 with the Federal Energy Regulatory 10, 2014 with the Federal Energy Another major expansion occurred on November Expansion of SPP Market into Eastern and Western Grid Interconnections Expansion of SPP Market into Eastern and Western December 2014 the Broader Regional Markets initiatives since 2010. been attempting to eliminate trade barriers among the North American power markets through trade barriers among the North American power been attempting to eliminate Pennsylvania-New Jersey-Maryland Interconnection (PJM), and ISO-New England (NE) have (NE) England Interconnection (PJM), and ISO-New Pennsylvania-New Jersey-Maryland cost-savings to consumers, the New York Independent System Operator (NYISO), (NYISO), the New York Independent System Operator cost-savings to consumers, In an effort to improve coordination of power transactions, enhance efficiency, and provide provide and of power transactions, enhance efficiency, In an effort to improve coordination PJM-NYISO Market-to-Market Coordination PJM-NYISO Market-to-Market data points in 2014, with a 21% increase in the last year alone. This is illustrated in Figure 2. in Figure a 21% increase in the last year alone. This is illustrated data points in 2014, with has been increasing considerably, ranging from 5,700 LMP data points in 2009 to 6,699 LMP to 6,699 2009 ranging from 5,700 LMP data points in has been increasing considerably, Over the past five years, the amount of market price data for only the day-ahead LMP market LMP the amount of market price data for only the day-ahead Over the past five years, Figure 2: MISO day-ahead market LMPs (December 2009 - December 2014) (Source: MISO) Figure 2: MISO day-ahead market members starting in June 2015, with full membership beginning in October 2015. members starting in June 2015, with full membership North Dakota, and South Dakota. SPP plans to take on reliability coordination of its three new on reliability coordination of North Dakota, and South Dakota. SPP plans to take customers across seven states, including Iowa, Minnesota, Montana, Nebraska, customers across seven states, including Iowa, Minnesota, The expansion will cover 9,500 miles of transmission lines, servicing three million lines, servicing three million The expansion will cover 9,500 miles of transmission ultimately translate into greater price convergence between the two regions. ultimately translate into greater price convergence the combined energy production costs of the two systems. This increased flow of energy will systems. This increased flow of the combined energy production costs of the two power and more efficiently use the transmission lines connecting the two regions—lowering lines connecting the two regions—lowering power and more efficiently use the transmission transaction scheduling (CTS) system to help market participants access the latest source of participants access the latest transaction scheduling (CTS) system to help market energy across their mutual borders. The two grid operators implemented a coordinated operators implemented a coordinated energy across their mutual borders. The two grid On November 4, 2014, PJM and NYISO announced that they are streamlining the flow of that they are streamlining the On November 4, 2014, PJM and NYISO announced In Depth 72 CAISO footprint and PacifiCorp and NV Energy electric service territories Balancing AuthorityBalancing Areas California ISO PacifiCorp NV Energy

Figure 3: CaISO footprint expanding throughout PacifiCorp’s electric service territory (Source: CaISO) Figure 3: CaISO footprint expanding throughout PacifiCorp’s electric December 2014 their markets in 2007, Czech Republic and Slovakia in 2011, and Italy and Slovenia in 2011. in 2011, and Italy and Slovenia their markets in 2007, Czech Republic and Slovakia Great Britain joined the CWE in 2010 and 2011 respectively. Spain and Portugal coupled respectively. Spain and Portugal Great Britain joined the CWE in 2010 and 2011 integrated their markets (Central Western Europe – CWE) in 2006. Germany, Luxemburg, and – CWE) in 2006. Germany, Luxemburg, integrated their markets (Central Western Europe liberalization of the electricity market in the 1990s. France, Belgium, and the Netherlands France, Belgium, and the Netherlands liberalization of the electricity market in the 1990s. Denmark, , Norway, and Sweden ratified a market splitting model following the a market splitting model following Denmark, Finland, Norway, and Sweden ratified On the other side of the Atlantic, electricity market integration has been progressing since since electricity market integration has been progressing On the other side of the Atlantic, Power Markets Become Integrated in Europe Power Markets Become exchange velocity and storage. exchange velocity and storage. will further add to the data management challenge by creating more stress for the data data for the management challenge by creating more stress will further add to the data according to hourly intervals. The dispatch of generation and load data at 15-minute intervals intervals 15-minute The dispatch of generation and load data at according to hourly intervals. scheduled balancing authorities have been predominantly Energy transfers between Figure 3 illustrates the extent of CaISO’s footprint across the Southwest. Figure 3 illustrates the extent participating in the EIM in October 2015. participating in the EIM in California, Oregon, Washington, Utah, Idaho, and Wyoming. NV Energy will also begin also begin Utah, Idaho, and Wyoming. NV Energy will California, Oregon, Washington, market (EIM), implemented to better integrate renewable generation into the grid across across the grid to better integrate renewable generation into market (EIM), implemented On November 1, 2014, CaISO and PacifiCorp began operating a real-time energy imbalance a real-time energy began operating 1, 2014, CaISO and PacifiCorp On November California Independent System Operator (CaISO) joined BPA’s initiative. (CaISO) joined BPA’s System Operator California Independent in 2011, allowing for scheduling energy transmission in 15-minute intervals. Afterward, intervals. Afterward, transmission in 15-minute for scheduling energy in 2011, allowing The Bonneville Power Administration (BPA) implemented Intra-Hour Scheduling Pilot Program Scheduling Pilot (BPA) implemented Intra-Hour Power Administration The Bonneville in the nation, takes the lead. in the nation, Pacific Northwest, with some of the most aggressive renewable generation portfolios portfolios generation renewable the most aggressive with some of Northwest, Pacific balancing authorities to evaluate and revise existing energy balancing practices. The US practices. balancing existing energy and revise to evaluate authorities balancing A growing share of renewable resources in the generation portfolio has been pushing has been pushing portfolio the generation in renewable resources share of A growing Renewable Generation Energy and Renewable Markets In Depth

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Up until 2009, the majority of total 5 Figure 4: Fully coupled day-ahead electricity market in Europe (Source: ACER) Figure 4: Fully coupled day-ahead electricity market in Europe

4 December 2014 Just nine months prior, the price coupling of northwestern Europe occurred on Europe occurred northwestern coupling of the price months prior, Just nine Kingdom. and the United Hungary, OPCOM in Romania, and OKTE in Slovakia. and OKTE in Romania, OPCOM in Hungary, Sweden, Norway, Estonia, Luxembourg, the Netherlands, Latvia, Lithuania, Germany, Austria, creation of a coupled day-ahead electricity market of OTE in Czech Republic, HUPX in Republic, HUPX in Czech market of OTE electricity day-ahead of a coupled creation France, Denmark, Finland, trading in Belgium, which provided day-ahead February 4, 2014, The latest step of European market integration took place on November 19, 2014, with the with 2014, 19, on November place took integration market of European step latest The production, growing by an average rate of 1.6% per year. production, growing by an average rate of 1.6% per have undergone a fundamental shift. As of 2012, North America leads the world in shale gas North America leads the world have undergone a fundamental shift. As of 2012, Because of the sudden surge in shale gas production in recent years, the natural gas markets in recent years, the natural Because of the sudden surge in shale gas production Global LNG Trade: More Opportunities and More Intricacies Global LNG Trade: More Opportunities and More significant changes. But it isn’t only the power markets that are shifting; natural gas markets are also experiencing natural gas markets are also But it isn’t only the power markets that are shifting; dedicated data monitoring function. quickly and frequently, this task can be very challenging for those with limited resources in for those with limited resources quickly and frequently, this task can be very challenging consolidation occurring so being transformed. With EPEX SPOT and APX, are key data providers such as reports, especially from the watch very closely how data Market participants have to will also go through changes. associated with these markets converge, data sources As European power markets market participants. between suppliers. The further between suppliers. The further need for coordination between and increasing competition and increasing competition borders will demand a greater by easing cross-border trade by easing cross-border trade expansion of interconnected towards enhancing reliability towards enhancing reliability countries is considered a step countries is considered a The expansion between these The expansion between by 2015. represented by the orange area. Italy is expected to operate a fully coupled day-ahead market day-ahead area. Italy is expected to operate a fully coupled represented by the orange February 4, 2014. Spanish and Portuguese markets coupled on May 13, 2014, which is on May 13, 2014, markets coupled Spanish and Portuguese February 4, 2014. In Figure 4, the dark blue area represents a fully coupled day-ahead market as of market as of a fully coupled day-ahead dark blue area represents In Figure 4, the In Depth 74

BG Group signed a similar 8 7

6 December 2014 European market by creating long-term LNG contracts that are beneficial for European European market by creating long-term LNG contracts North American LNG companies have been making efforts to enhance their positions in the efforts to enhance their positions North American LNG companies have been making pace with demand. Europe and Asia are major areas of interest for North American LNG. of interest for North American pace with demand. Europe and Asia are major areas In the case of the global LNG market, North American suppliers have been challenged to keep suppliers have been challenged In the case of the global LNG market, North American almost double between 2013 and 2040. almost double between for Henry Hub. that links natural gas prices to the US spot market , shale gas production is predicted to , shale gas production is According to the EIA’s Annual Energy Outlook 2013 Cheniere signed a 20-year contract with For example, in June 2014, Gas Natural from Spain Figure 5 represents the increase in US natural gas production between 2010 and 2013. and in US natural gas production between 2010 Figure 5 represents the increase spot markets. consumers and that can be delivered to European production from other plays, particularly the Haynesville and Marcellus, is increasing rapidly. increasing particularly the Haynesville and Marcellus, is production from other plays, US shale gas production came from the Barnett shale. However, in the last few years, few years, came from the Barnett shale. However, in the last US shale gas production Figure 5: US natural gas production has been undergoing an increasing trend (Data Source: EIA) Figure 5: US natural gas production cubic feet of natural gas annually by 2040. from abroad. The EIA predicts that the United States will export approximately 3.6 trillion will export approximately 3.6 from abroad. The EIA predicts that the United States in natural gas production, with producers seeing opportunities as a result of growing demand demand of growing with producers seeing opportunities as a result in natural gas production, the United States. Since 2006, the development of shale gas resources has spurred growth has spurred 2006, the development of shale gas resources the United States. Since The price of natural gas is an important factor in the rapid increase in shale gas production in gas production an important factor in the rapid increase in shale The price of natural gas is trading benchmarks for Henry Hub and National Balancing Point (NBP). trading benchmarks for Henry Hub and National of natural gas prices in Europe. The graph in Figure 6 represents similar prices at global 6 represents similar prices at of natural gas prices in Europe. The graph in Figure globalized gas market will likely lead the US Henry Hub price benchmark to become the driver Hub price benchmark to become globalized gas market will likely lead the US Henry contract with Cheniere in 2011. Growing exports of LNG from North America and a more of LNG from North America and contract with Cheniere in 2011. Growing exports In Depth 75 Henry Hub 10

East Africa may They are the 13 11 Centrica also signed an Centrica also signed an 9 Australia is poised to become the largest 12 to 83 million tons a year by 2020, compared with 79 million tons for Qatar. to 83 million tons a year by 2020, compared with region once LNG export terminals come on line. Australian LNG exports are forecast to climb LNG exports are forecast region once LNG export terminals come on line. Australian supplier of LNG in the world and to become a leading exporter of LNG to the Asia-Pacific exporter of LNG to the Asia-Pacific supplier of LNG in the world and to become a leading agreement with Qatar for 2.4 million tons (3.26 bcm) per year of LNG supplies. agreement with Qatar for suspended due to political and economic factors. intentions to export LNG, plans for seven LNG terminals have either been cancelled or have either been cancelled intentions to export LNG, plans for seven LNG terminals Canada is the fourth-largest exporter of natural gas in the world. Although Canada has in the world. Although Canada Canada is the fourth-largest exporter of natural gas second and third facilities approved to export LNG to the Asia-Pacific region. second and third facilities approved to export LNG export terminal in and Carib Energy’s smaller terminal in Florida. export terminal in Louisiana representing a significant milestone for the industry. FERC approved the Sempra Energy’s LNG Energy’s Sempra milestone for the industry. FERC approved the representing a significant LNG to non-Free Trade Agreement countries, such as Japan and other Asian countries, countries, countries, such as Japan and other Asian LNG to non-Free Trade Agreement the United States. In September 2014, the US Department of Energy approved the export of export the 2014, the US Department of Energy approved the United States. In September may soon play the same role in Japan, thanks to approval of several LNG export facilities in export facilities role in Japan, thanks to approval of several LNG may soon play the same North America, Europe, Asia, and Australia. flexible. This is apparent in Figure 7, which represents current cross-border LNG trade among current cross-border LNG flexible. This is apparent in Figure 7, which represents As future LNG markets expand throughout the world, LNG routes will evolve and become more LNG routes will evolve and become As future LNG markets expand throughout the world, markets in Asia. emerge as a strong competitor to Qatar and Australia in the battle to capture key export in the battle to capture key emerge as a strong competitor to Qatar and Australia December 2014 (Data Source: NYMEX) natural gas prices to NBP benchmarks. UK utility Centrica that links On November 21, 2011, Norwegian Statoil signed a 13 billion GBP supply agreement with agreement Norwegian Statoil signed a 13 billion GBP supply On November 21, 2011, Figure 6: ZEMA graph comparing prices at global trading benchmarks for Henry Hub, Brent, and NBP prices at global trading benchmarks for Henry Hub, Brent, and Figure 6: ZEMA graph comparing In Depth 76

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disrupts these projects, often resulting in their cancellation before they even near completion. before they even near disrupts these projects, often resulting in their cancellation completion will often require re-design and revaluation. Restarts are another major issue that Restarts are another major completion will often require re-design and revaluation. Overshooting timelines is extremely common, as those projects that make it to some form of those projects that make it to some Overshooting timelines is extremely common, as As well, the average time-to-market of an EDM software development project is three years. development project is three As well, the average time-to-market of an EDM software projects will be successful and will often have less functionality than originally intended. projects will be successful and will often have less December 2014 half will cost at least 189% of organizations’ original estimates. On average, only 16% of build estimates. On average, only half will cost at least 189% of organizations’ original development projects will be cancelled at some point during development, and more than point during development, and more development projects will be cancelled at some scratch is, in most cases, an unnecessary risk. Research suggests that 31.1% of software scratch is, in most cases, an unnecessary risk. Research operational needs. However, creating software from software solutions created solely for their business. decision of implementing an Enterprise Data Management (EDM) solution to support their (EDM) solution to support decision of implementing an Enterprise Data Management one-off are attracted to the idea of building data, many companies with strong IT departments When it comes to addressing this challenge, many energy companies are confronted with the When it comes to addressing this challenge, many markets and the volumes of accompanying In order to meet the challenges of shifting energy efficiently track, manage, organize, and store data is among the most significant challenges. is among the most significant efficiently track, manage, organize, and store data The Solution Enterprise Management Data requirements of these markets are complex and constantly expanding, finding ways to constantly expanding, finding ways requirements of these markets are complex and correlate and interpret using manual data collection and management processes. As the data and management processes. correlate and interpret using manual data collection data from multiple sources. Such a wealth of data can be exceedingly complicated to can be exceedingly complicated data from multiple sources. Such a wealth of data natural gas, and other energy and commodity market participants face a deluge of market participants face a deluge natural gas, and other energy and commodity market This data boom leads to a special use case of the data management mess, where power, power, where a special use case of the data management mess, This data boom leads to exports increase, so will the volumes of data associated with them. exports increase, so will As LNG supply, terminals, plants, shipping, liquefaction capacities, trade contracts, and net and contracts, plants, shipping, liquefaction capacities, trade As LNG supply, terminals, Figure 7: Future global LNG trade routes (Source: Citi Investment Research and Analysis) Figure 7: Future global LNG trade In Depth 77

press_releases/2014/PJM NYISO Implement Coordinated Transaction Scheduling - 11 5 14 - FINAL.pdf. Scheduling - 11 press_releases/2014/PJM NYISO Implement Coordinated Transaction November 5, 2014. Accessed December 5, 2014. http://www.nyiso.com/public/webdocs/media_room/ Filing.” and Directing Compliance Hearing and Settlement Judge Procedures and Consolidation Proceedings November 10, 2014. Accessed United States of America Federal Energy Regulatory Commission. Accessed December 5, 2014. http://www.nyiso.com/public/webdocs/markets_operations/committees/ December 5, 2014. http://www.ferc.gov/CalendarFiles/20141110183532-ER14-2850-000.pdf.

“PJM, NYISO Implement Coordinated Transaction Scheduling.” New York Independent System Operator. New York Independent System Operator. “PJM, NYISO Implement Coordinated Transaction Scheduling.” Establishing and Suspending Filings in Part, “Order Conditionally Accepting in Part, Rejecting in Part, Accepting Edelson, David. “Broader Regional Markets.” New York Independent System Operator. May 24, 2014. System Operator. May 24, 2014. Edelson, David. “Broader Regional Markets.” New York Independent “Market Coupling A Major Step Towards Market Integration.” EPEX SPOT. Accessed December 7, 2014. SPOT. Accessed December 7, 2014. “Market Coupling A Major Step Towards Market Integration.” EPEX

3. 2. 1. bic_miwg/meeting_materials/2010-05-24/Broader_Regional_Markets_Initiatives_Updates.pdf. Bibliography http://www.epexspot.com/en/market-coupling. 4.

December 2014 to learn more. Request ZE’s white paper “Weighing the Options: Build an Internal EDM System or Get ZEMA” Get or “Weighing the Options: Build an Internal EDM System Request ZE’s white paper capital and resources. ity; the solution will continue to evolve, adding value without requiring constant investment of investment to evolve, adding value without requiring constant ity; the solution will continue - functional to from end-users to create continuous updates vendors incorporate suggestions insights from helping other businesses that have faced similar challenges. Nearly all software all Nearly businesses that have faced similar challenges. insights from helping other with proven success developing solutions for a particular industry will have gained valuable will have gained for a particular industry success developing solutions with proven The majority of issues faced by businesses are not uncommon. As such, a software company As such, a software are not uncommon. of issues faced by businesses The majority and continual maintenance. and continual also buying the thousands of hours of research and development that went into its creation that went into its research and development thousands of hours of also buying the rather than attempting to create it themselves, they aren’t just buying the product—they are buying the product—they they aren’t just to create it themselves, rather than attempting to developing software products. For this reason, when a business opts to purchase a solution opts to purchase this reason, when a business software products. For to developing will not have nearly the level of expertise and dedication as a business that is devoted entirely entirely that is devoted as a business dedication expertise and the level of have nearly will not robust and efficient software solutions. Even an organization with a very strong IT department department IT very strong with a an organization Even software solutions. and efficient robust an EDM solution internally. Software companies exist solely for the purpose of developing developing purpose of for the exist solely companies Software solution internally. an EDM Buying a commercial, off-the-shelf EDM reduces the time-to-market risks inherent in building in building inherent risks time-to-market the reduces EDM off-the-shelf commercial, a Buying In Depth 78

December 10, 2014. http://www.bloomberg.com/news/2014-09-09/ September 9, 2014. Accessed http://www.datawatch.ze.com/in-depth/north-american-lng-projects- Accessed December 10, 2014. Accessed December 10, 2014. http://www.ferc.gov/industries/gas/ Commission. December 3, 2014. Accessed December 9, 2014. http://www.centrica.com/index.asp?pageid=1041&newsid=2163. 9, 2014. http://www.centrica.com/index.asp? 21, 2013. Accessed December Centrica. November 9, 2014. http://www.reuters.com/article/2014/06/02/us-cheniere-energy-gas- Accessed December 2. Accessed November 26, 2014. http://www.projectsmart.co.uk/docs/ “Chaos.” The Standish Group. 1995: Sharples, Ben. “Australian LNG Contracts Under Pressure From U.S., Russia Supply.” Bloomberg. Contracts Under Pressure From U.S., Russia Supply.” Bloomberg. Sharples, Ben. “Australian LNG Yee, Adrian K. “North American LNG Projects: Political and Economic Factors.” ZE DataWatch. November 28, 2014. November LNG Projects: Political and Economic Factors.” ZE DataWatch. Yee, Adrian K. “North American “North American LNG Import /Export Terminals Approved.” United States of America Federal Energy Regulatory Terminals Approved.” United States of America Federal Energy “North American LNG Import /Export “Centrica Signs £2bn Gas Deal with Qatar to Secure LNG for the UK.” Centrica. February 23, 2011. with Qatar to Secure LNG for the UK.” Centrica. February 23, 2011. “Centrica Signs £2bn Gas Deal “Centrica Establishes Strategic Partnership with Statoil and Announces £1bn Norwegian Asset Acquisition.” Norwegian Asset Acquisition.” Statoil and Announces £1bn Strategic Partnership with “Centrica Establishes Toyer, Julien. “Cheniere, Gas Natural LNG Deal worth $13 Billion: Source.” Reuters. June 2, 2014. worth $13 Billion: Source.” Reuters. Gas Natural LNG Deal Toyer, Julien. “Cheniere, 8, 2014. December April, 2013. Accessed Administration. Information 2013.” US Energy Energy Outlook “Annual “Annual Energy Outlook 2014.” US Energy Information Administration. May 7, 2014. Accessed December 8, 2014. 8, 2014. December Accessed 7, 2014. May Administration. Information Energy US 2014.” Outlook Energy “Annual Disclaimer: and commodities markets, powered ZE DataWatch is a report comprised of data updates and expectations for energy by ZEMA. The news contained in ZE DataWatch is for information purposes only. Although ZE PowerGroup believes of it. not warrant the accuracy or completeness the information in this report to be correct, the organization does be relied not accounting, or tax advice and should Information in this report is not intended to provide financial, legal, or whatsoever for direct, indirect, special, upon in that regard. ZE PowerGroup is not responsible in any manner use of this report. consequential damages, howsoever caused, arising out of the About ZEMA: analysis. collecting data and performing complex ZEMA is an enterprise data management software designed for system. Each a sophisticated, unified, and automated ZEMA replaces fragmented data management processes with flexibility when integrating it into their organizations. ZEMA component is modular and scalable, giving clients greater the Energy the clock. It has been ranked first in The solution is easy to use and backed by ZE’s support team around software five years in a row. In Energy Risk’s annual Risk Awards “Data Management House of the Year” category for System first in the “Preferred System,” “Ease of survey and rankings, it is also consistently rated by end users as Integration,” and “Customer Service” categories. About ZE PowerGroup Inc.: advanced combines energy industry expertise with ZE is an experienced software and strategic consulting firm that and a sophisticated enterprise data management software development capabilities. ZE is the developer of ZEMA, energy and commodities markets. analysis solution built to meet the challenges of participants in chaos-report.pdf. 14. australian-lng-contracts-under-pressure-from-u-s-russia-supply.html. December 2014 13. political-and-economic-factors. 12. indus-act/lng/lng-approved.pdf. 11.

10. pageid=1041&newsid=2275. 9. natural-idUSKBN0ED1SS20140602. 8. 7. Ibid. http://www.eia.gov/forecasts/aeo/pdf/0383(2013).pdf. 6. http://www.eia.gov/forecasts/aeo/mt_naturalgas.cfm. 5.