Tesla and the Shift in Power: Part 2 How Powerpack and Powerwall Batteries Will Amplify the Need for Data Management

JUNE 2015

Tesla and the Shift in Power: Part 2 How Powerpack and Powerwall batteries will amplify the need for data management

By Jay Jameson ZE PowerGroup Inc. [email protected]

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 2 5 5 7 7 7 8 9 9 10 10 11 12 12 13 13 13 14 14 15 16 16 17 17 18 18 19 20 20 20 21 21 21 22 June 2015 Argus Introduces Hourly North American Power Forward Curves Hourly North American Argus Introduces Lots of German Base Load CME Trades First EEX German Power Contract Arranges First STP Cleared Marex Spectron Intraday Solution Börse, and Others Inaugurate European Cross-Border APX, EPEX SPOT, Deutsche FOB Jet Barge Swaps Platts Launches Rotterdam Supramax Dry Bulk Petcoke Assessments Platts Introduces New Asian Naphtha Assessments Platts Launches New East/West Assessments Argus to Add West African Crude Crude Assessments Argus Adds New North Sea Series Argus Adds US-Taiwan Isoprene Base Oil Assessments Argus Introduces North American and French Gasoil Heating Oil Codes Argus Launches New German Argus Adds Light and Heavy Basrah FOB Assessments CME Lists Two Existing Heating Oil Futures on CME Globex Platts Discontinues Rubber Index Newsletter Platts Discontinues Gasoil Minus Palm Oil Spread Platts Stops Publishing ICE Brent UK Assessments Argus Stops Two West African Oil Assessments Argus Stops Certain Russian Gasoil Assessments Assessments Argus Amends Descriptions for Mediterranean Fuel Oil Natural Gas Argus Launches Zeebrugge Natural Gas Assessments ICE, GME, and Snam to Introduce Italian Natural Gas Futures Coal Platts to Assess Illinois Basin 11,800 FOB Basin Coal Argus Adds US Coal Assessments Trading CME Lists Existing Coking Coal Contract on CME Globex Platts to Assess Rotterdam 0.1% Sulfur Bunker Fuel Platts to Assess Rotterdam Petroleum CAISO Releases New Mobile App with EIM Data New Mobile App with EIM CAISO Releases Power Editorial and Renewables between Coal in the Battle Success Intermittent Contents Summary 3 27 27 28 28 29 29 30 31 31 32 33 33 33 34 34 35 35 35 36 36 37 37 38 23 23 23 23 24 24 25 25 26 27 June 2015 Platts Launches European Iron Ore Netback Assessments Platts Launches European Iron Iron Ore Pellet Premium Platts Publishes Direct Reduction Oxide Assessment Argus Introduces Chinese Erbium Futures on CME Globex CME Lists Five Existing Metals Zinc Futures on CME COMOX Lists Physically-Delivered US Minor Metals Prices Platts to Discontinue Numerous and Palladium Prices Platts Discontinues LBMA Platinum Interest Rate Futures in Euro and Pound Sterling ICE Launches Eris Standard Finance Capability Thomson Reuters Launches New Valuations and Transparency Income Market Thomson Reuters Expands Coverage of Canada’s Fixed Nasdaq Lists Global X YieldCo Index ETF Nasdaq Lists Elkhorn S&P 500 Capital Expenditures ETF Corporate Eurobonds ICAP Launches First Matching Session in Investment Grade and Spain Euronext Launches Country Indexes for Germany, Italy, Nasdaq Lists Two New ProShares Biotech ETFs Contracts CME Delists Two US Barclays Rate Futures Options and Chinese Market SSE, CFFE, and Deutsche Börse to Launch an Offshore Weather and Emissions Nasdaq Stockholm Launches Sustainable Bonds List CME Delists Certain US and European Monthly, Weekly, and Seasonal Strip Index Futures and Options METALS Battery Assessment Platts to Add New US Lead-Acid Platts to Introduce Supplementary Biofuels RIN Codes Biofuels RIN Introduce Supplementary Platts to Metals and Softs SOFTS Fertilizer Assessments European Argus Adds Bulk FOB Assessment Algerian Urea Granular Argus Introduces Buyers and Sellers US and Canadian Cattle AgriClear Platform for TMX Group Launches ARA Assessments Directive Biodiesel FOB non-Renewable Energy Platts to Discontinue Assessment European SME Biodiesel Energy Directive Platts Ends non-Renewable Saving for Standard T2 Ethanol Minimum Greenhouse Gas Platts to Launch Select European Fertilizer Codes Argus Revises and Replaces Summary 4 39 39 39 39 40 40 41 41 41 42 44 46 48 49 50 50 51 52 53 54 55 56 57 58 58 June 2015 Other EIA Releases New Energy Visualization Widget Visualization New Energy EIA Releases Publishers Content to Online Free News Begins Offering Reuters Center Aurora Data in CME’s Data Services its Market Reuters Launches Thomson Service Psychological Analysis Expands Financial Markets Thomson Reuters in Ontario with New Data Centers Presence in Canadian Market Nasdaq Expands Vendors News from Data in June Oil, and Petrochemical Assessments Gas, Wind, Water, ZEMA Adds Electricity, Service Spot Ticker Benchmark Data ZE Adds Argus as Pre-registered RRM EEX and EPEX SPOT Approved with Deutsche Börse for Power Exchanges Sign Contract Intraday Solution Delivery of the European Cross-Border in France Organized Secondary Market for Capacity Guarantees New Exchange Council Approves Day-Ahead Market by End of November 2015 SEEPEX Targets Launch of Serbian the India Greenhouse Gas Reporting Company Database Carbon Market Data Launches Monthly Market Analysis Contract (NYMEX) Crude Oil Brent vs. WTI: Prompt-Month Curve (NYMEX) Crude Oil Brent vs. WTI: Forward Spot Prices (NYMEX) North American Natural Gas Henry Hub Natural Gas Forward Curve (NYMEX) Actual Weather (AccuWeather) Electricity: Day-Ahead Prices (ICE) Gold and Silver Daily Prices (CME) Wheat Futures Forward Curve (CME) In Depth Tesla and the Shift in Power: the need for data management Part 2 – How Powerpack and Powerwall batteries will amplify Editorial 5

By Olga Gorstenko, Olga By Editor-In-Chief Datawatch [email protected]

in the Battle between

Intermittent Success Coal and Renewables painless transformation of power systems into the new realm. painless transformation of power systems into the business practices, introducing new services, tools, and products, which will support the and products, which will support business practices, introducing new services, tools, distributed, or aggregated into microgrids, will only accelerate. So they adapt by revising accelerate. So they adapt by distributed, or aggregated into microgrids, will only recognize that the current pace of renewable generation, whether being part of the main grid, whether being part of the recognize that the current pace of renewable generation, even in completely new market entities – microgrids. Most utilities and system operators Most utilities and system operators even in completely new market entities – microgrids. are true bottom-up forces that transpire in technological innovations, like Powerpack, and innovations, like Powerpack, are true bottom-up forces that transpire in technological These walls are not laws and regulations that can be fought with in courts and Congress; they be fought with in courts and Congress; These walls are not laws and regulations that can this victory will last is still hanging in the air, as the renewable generation walls are closing in. renewable generation walls are this victory will last is still hanging in the air, as the June 2015 MATS for over four years now. At the same time, the multi-billion-dollar question of how long the multi-billion-dollar question MATS for over four years now. At the same time, noticeable victory of the opposition that has been standing its grounds in the battle against standing its grounds in the battle noticeable victory of the opposition that has been would outweigh the expected benefits of $4-6 million. No doubt, this decision marked a No doubt, this decision marked would outweigh the expected benefits of $4-6 million. prompted by an excessively high cost of compliance estimated at $9.6 billion annually, which estimated at $9.6 billion annually, prompted by an excessively high cost of compliance apply mainly to generators fueled by coal and oil. As explained by justices, the decision was As explained by justices, the decision apply mainly to generators fueled by coal and oil. mercury and other hazardous air pollutants released from power plants. These standards from power plants. These standards mercury and other hazardous air pollutants released Environmental Protection Agency’s (EPA’s) Mercury and Air Toxics Standards (MATS) limiting and Air Toxics Standards (MATS) Environmental Protection Agency’s (EPA’s) Mercury environmental plan. On that day, the US Supreme Court overturned the environmental plan. On that day, the US Supreme On June 29, 2015, industry newsmakers announced “a blow” to President Obama’s “a blow” to President Obama’s On June 29, 2015, industry newsmakers announced Editorial 6 Subscribe on your iPad today Editor-In-Chief Email: [email protected] Olga Gorstenko Olga Get real-time data updates @zedatawatch ZEMA Inquiries P: 604-790-3299. E: [email protected] Bruce Colquhoun. Relationships Advertising & Vendor P: 604-790-3299. E: [email protected] Bruce Colquhoun. Contact DataWatch E: [email protected] Front Desk: 1-866-944-1469 Editorial Department: 778-296-4183 2 Road, M: ZE PowerGroup Inc. 130-5920 No. Richmond, BC V7C 4R9 To search our archives: www.datawatch.ze.com the intermittent renewable generation. < celebrating a rather intermittent victory over should be easy to arrive at. It looks like coal is indicators of these forces, your conclusion introduction of new data reports serve as changes in data sources, and the define the industry, and that market data, market forces shape a market economy and If you believe that in open competition the mobile app. at thousands of points through ISO Today, fifteen-minute and real-time dispatch prices Market data offerings by now streaming ISO expanded its set of Energy Imbalance ISO expanded its set of Energy resources through aggregators. California resources through aggregators. products to be offered by distributed products to be offered by capacity and ancillary services and capacity and ancillary services forecasting, and the development of new forecasting, and the development “behind-the-meter” data for load “behind-the-meter” data availability of the currently inaccessible availability of the currently the introduction of dynamic pricing, the the introduction of dynamic distributed energy resources into the grid: distributed energy resources needed for successful integration of needed for successful integration report identified the areas of adjustments report identified the areas wind forecast. NYISO’s 2015 Power Trends wind forecast. NYISO’s 2015 and the introduction of several zones for of several zones and the introduction changes, include the segregation of data the segregation of changes, include periods. The formula updates, among other formula updates, among periods. The wind power capacity during peak demand during peak demand wind power capacity methodology for expected availability of for expected availability methodology improvements to its wind forecasting to its wind forecasting improvements renewable generation. ERCOT announced ERCOT generation. renewable promote the smooth integration of integration the smooth promote several ISOs announced initiatives that initiatives ISOs announced several Incidentally, during the month of June, of June, month the during Incidentally, June 2015 Power 7

Filename yyyymmddfwdehourlyercot.csv yyyymmddfwdehourlymiso.csv yyyymmddfwdehourlynepool.csv yyyymmddfwdehourlynyiso.csv yyyymmddfwdehourlypjm.csv Folder FWDEHourlyErcot FWDEHourlyMISO FWDEHourlyNEPool FWDEHourlyNYISO FWDEHourlyPJM

Location ERCOT MISO NEPool NYISO PJM June 2015 ISO’s progress towards integrating green energy. ISO’s progress towards integrating renewable energy production for the current and previous day also gives the user data on data the user for the current and previous day also gives renewable energy production launched numerous hourly On June 16, 2015, Argus announced that it has solar and wind generation, as well as weather conditions in and around California. Hourly Hourly as well as weather conditions in and around California. solar and wind generation, Argus Introduces Hourly North American Forward Power Curves Originally launched in February 2013, the ISO Today app provides information on current current on 2013, the ISO Today app provides information Originally launched in February data library, CAISO. To learn more about ZEMA’s massive ZEMA regularly collects more than 190 electricity reports from visit www.ze.com/the-zema-solutions/data. points on the grid that includes those in the new western regional Energy Imbalance Market. Imbalance those in the new western regional Energy points on the grid that includes See the original announcement. 18:30 p.m. CST for FTP subscribers. The new price map includes fifteen-minute and real-time dispatch prices at thousands of at thousands fifteen-minute and real-time dispatch prices The new price map includes at site. Data will be made available each with a separate folder and csv file on the FTP maps for the Energy Imbalance Market (EIM), Market Notices, and social media posts. Market (EIM), Market Notices, and social maps for the Energy Imbalance data sets, location through five individual via ftp.argusmedia.com. This data is available by released an updated version of its mobile app, ISO Today, which includes enhanced price enhanced of its mobile app, ISO Today, which includes released an updated version the Argus FC API and also electricity forward curves. Data will be available through

CAISO Releases New Mobile App with New CAISO EIM Data Releases Independent System Operator Corp. (CAISO) On June 12, 2015, The California Historical data is available from June 2, 2015. The added products include weekdays on Power peak, weekends peak, and nights off peak for the following zones: • PJM West • ERCOT South • NEPool SEMA • MISO Indiana • PJM AD • ERCOT Houston • NYISO Zone A • MISO Michigan • PJM NI • ERCOT West • NYISO Zone C • MISO Illinois • PJM East • NEPool Mass • NYISO Zone F • MISO Louisiana • PJM PEPCO • NEPool CT • NYISO Zone G • MISO Texas • ERCOT North • NEPool NEMA • NYISO Zone J See the original announcement.

The graph below shows projected spark spreads for the New York, Houston, and Chicago regions based on natural gas and power forward curves from CME NYMEX. Data: ZEMA NYMEX Future Settlements report. Analyses like this can easily be generated within ZEMA’s Market Analyzer tool. To learn more, book a complimentary ZEMA demonstration.

CME Trades First Lots of German Base Load On June 16, 2015, the Chicago Mercantile Exchange (CME) announced the first trade of its new European Power Contracts. The contract traded for the first time on CME Europe. The trade comprising five contracts (totaling 60 lots) of German base load Calendar Year 2016 traded with the broker GFI Brokers Limited, involving Mercuria Energy Trading SA and Freepoint Commodities LLP as the counterparts. CME has a suite of eight European Power cash-settled futures for the leading electricity markets, with base load and peak load available for Germany, France, Italy, and Spain. They are available on CME ClearPort and CME Globex, and are distributed via the Trayport platform alongside other exchange products.

June 2015 8 The new power contracts are subject to the rules of CME Europe and cleared via CME Clearing Power Europe, CME Group’s European clearing house. 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 the Chicago Mercantile Exchange. To learn more, visit www.ze.com/the-zema-solution.

Marex Spectron Arranges First STP Cleared EEX German Power Contract Effective May 18, 2015, Marex Spectron has executed the first trade of the European Energy Exchange’s (EEX) “Phelix” German power option contract to be cleared via straight-through-processing (STP). The trade was arranged for two of Marex Spectron’s major energy clients. The trade was delivered to EEX via the European Federation of Energy Traders’ eXRP clearing solution. eXRP is a non-discriminatory, open standard, industry-owned and -governed infrastructure, which establishes STP integrating all participating execution and clearing venues. See the original announcement.

APX, EPEX SPOT, Deutsche Börse, and Others Inaugurate European Cross-Border Intraday Solution Effective June 9, 2015, the European Power Exchanges (PXs) APX, Belpex, EPEX SPOT, GME, Nord Pool Spot, and OMIE announced that they have signed, with the support of 15 Transmission System Operators (TSOs), a contract with Deutsche Börse AG for the development of the European Cross-Border Intraday Solution (XBID Solution). This marks a key milestone for the project. Following the completion of the design phase, the development of the XBID solution will commence with immediate effect. It is due to be completed by spring 2016 and will be followed by a period of testing. Delivery of the solution into the market is expected in 2017. After the successful coupling of European day-ahead markets, the single EU-wide intraday coupling is a key component for completing the European Internal Energy Market. This XBID solution will be based on a common IT system, to be developed by Deutsche Börse AG, linking the local trading systems operated by the PXs, as well as the available cross-border transmission capacities provided by the TSOs. Orders entered by market participants in one bidding zone can be matched, in continuous trading, with orders similarly submitted by market participants in any other bidding zones covered by the XBID solution, provided there is cross-border capacity available. See the original announcement.

June 2015 9 Petroleum 10

(calcium > 30 and zinc > 15; or calcium > 30 and phosphorus > 15), H2S 2ppm max. phosphorus > 15), H2S 2ppm (calcium > 30 and zinc > 15; or calcium > 30 and Phosphorus max 15 mg/kg, Calcium max 30 mg/kg, Free from used lubricating oils (ULO) Free from used lubricating Phosphorus max 15 mg/kg, Calcium max 30 mg/kg, June 2015 max 0.15%, Water max 0.5%, Vanadium max 300 mg/kg, TSP 0.1%, Zinc max 15 mg/kg, mg/kg, TSP 0.1%, Zinc max 15 max 0.15%, Water max 0.5%, Vanadium max 300 silicon content of 80 ppm, 30 max Pour Point, Flash min 60 degrees C, CCR max 18%, Ash min 60 degrees C, CCR max silicon content of 80 ppm, 30 max Pour Point, Flash viscosity (at 50 degrees C) and 0.991kg/l density with a maximum combined aluminum and with a maximum combined aluminum viscosity (at 50 degrees C) and 0.991kg/l density sulfur. Platts proposes to reflect the value of 0.1% maximum sulfur with 380 CST max maximum sulfur with 380 CST sulfur. Platts proposes to reflect the value of 0.1% Specifications generally conform with that for RMG 380 CST but with a 0.1% maximum 380 CST but with a 0.1% maximum Specifications generally conform with that for RMG The proposed new assessment would reflect the following specifications: The proposed new assessment would reflect the Rotterdam, and published in dollars per metric ton. The proposed new assessments for this product would be made on a delivered basis in would be made on a delivered basis The proposed new assessments for this product standard has been described by many market participants as a dirty gasoil. standard has been described by many market participants fuel, as the focus is on emissions, which leaves the door open for multiple means fuel, as the focus is on emissions, which leaves the fuel distillate fuels. This new bunker component of bunker fuel, and less sulfur-intense International Maritime Organization rules. The regulations do not stipulate use of a specific do not stipulate use of International Maritime Organization rules. The regulations been a fuel oils, which have traditionally The new standard could feature aspects of residual sulfur emissions from fuel to 0.1%, down from the previous maximum of 1%, according to to 0.1%, down from the previous maximum of sulfur emissions from fuel key component in meeting the new regulatory requirement. Since January 1, 2015, ships traveling within the Northwest European ECA have had to limit had have traveling within the Northwest European ECA Since January 1, 2015, ships as a ECA-compliant bunker fuel standard potential for a new market to evolve based on an Platts intends to introduce a new assessment for an ECA-compliant, 0.1% sulfur bunker fuel. bunker sulfur a new assessment for an ECA-compliant, 0.1% Platts intends to introduce the Platts believes there exists Based on extensive consultation with market participants, Effective September 1, 2015, in line with the introduction of new sulfur Effective September 1, 2015, Europe, in the Emissions Control Area around Northwest emissions rules for vessels of compliance. Platts to Assess Rotterdam Fuel Sulfur 0.1% Bunker The assessment would reflect fuel loading on a delivered basis, 1-8 days forward from the Petroleum date of assessment. The minimum stem size would be 200 mt and the maximum stem size would be 1,000 mt. Platts will continue to publish its current assessments for marine gasoil, which is also ECA-compliant. See the original announcement.

ZEMA, ZE’s data management solution, collects over 300 Platts records on petroleum and other liquids. To learn more about ZEMA’s vast data library, visit www.ze.com/the-zema-solutions/data-coverage.

Platts Launches Rotterdam FOB Jet Barge Swaps Effective June 1, 2015, Platts launched new assessments for FOB Rotterdam jet barge swaps at 4:30 p.m. London time. The swaps will be assessed as differentials to ICE low sulfur gasoil futures three months forward. Platts will also publish the price in outright terms, as a differential to ICE Brent crude futures (crack), as a spread to CIF NWE jet cargoes and as a spread to FOB ARA diesel barges. Platts will publish these assessments in US dollars per metric ton on PFC page 1652, codes are as follows: • AAXVH00 Jet Rott FOB Brg Brent • AAXWM02 Jet Rott FOB Brg vs Jet Crk Swap BalMo NWE CIF Crg Swap Mo02 • AAXVM01 Jet Rott FOB Brg Brent • AAXTH00 Jet Rott FOB Brg vs LS Crk Swap Mo01 GO Frontline Swap BalMo • AAXVM02 Jet Rott FOB Brg Brent • AAXTM01 Jet Rott FOB Brg vs LS Crk Swap Mo02 GO Frontline Swap Mo01 • AAXUH00 Jet Rott FOB Brg Flat • AAXTM02 Jet Rott FOB Brg vs LS Prc Swap BalMo GO Frontline Swap Mo02 • AAXUM01 Jet Rott FOB Brg Flat • AAXXH00 Jet Rott FOB vs ULSD Prc Swap Mo01 10ppm ARA Brg Swap BalMo • AAXUM02 Jet Rott FOB Brg Flat • AAXXM01 Jet Rott FOB vs ULSD Prc Swap Mo02 10ppm ARA Brg Swap Mo01 • AAXWH00 Jet Rott FOB Brg vs Jet • AAXXM02 Jet Rott FOB vs ULSD NWE CIF Crg Swap BalMo 10ppm ARA Brg Swap Mo02 • AAXWM01 Jet Rott FOB Brg vs Jet • ABWCX00 Jet Kero NWE CIF Crg NWE CIF Crg Swap Mo01 Brent Crk Swap BalMo

See the original announcement.

June 2015 11 Petroleum

Platts Introduces New Asian Supramax Dry Bulk Petcoke Assessments Effective June 1, 2015, Platts launched two new dry bulk Supramax freight assessments, reflecting established trade routes of petcoke from the US Gulf Coast. These new assessments reflect strong market interest in these routes and will be based on modern Supramax dry bulk tonnage. Both assessments are published on a dollar per metric ton basis. The following two routes were introduced:

Size Cargo type Origin Destination 50kt petcoke Houston Krishnapatnam, East Coast India 50kt petcoke Houston Qingdao, North China See the original announcement.

ZEMA collects Platts petroleum data from all over the world, including more than 60 regular Platts reports from Europe. To learn find out how ZEMA can use this data to generate sophisticated forward curves, visit www.ze.com/the-zema-suite/curve-manager.

Platts Launches New East/West Naphtha Assessments As of June 1, 2015, Platts published assessments of the East/West Naphtha Swap spreads at 16:30 London time. The East/West naphtha swap spread will represent the difference between the comparable month’s Mean of Platts Japan Naphtha and the Naphtha Northwest Europe CIF Cargo Swaps. Platts adds these assessments to its existing naphtha derivative suite to enhance its coverage of the naphtha market and better represent the key arbitrage route between Europe and Asia. The new price assessments cover three calendar months forward from the date of publication. Platts will publish bids, offers and interest to trade the East/West Naphtha Spread in the Platts Market on Close assessment process. Platts will publish these assessments in US dollars per metric ton on PFC page 1692, codes are as follows: • MANJM01 Naphtha CFR MOPJ vs Naphtha NWE CIF Crg Swap Spread London Mo01 • MANJM02 Naphtha CFR MOPJ vs Naphtha NWE CIF Crg Swap Spread London Mo02 • MANJM03 Naphtha CFR MOPJ vs Naphtha NWE CIF Crg Swap Spread London Mo03 See the original announcement.

June 2015 12 Petroleum Argus to Add West African Crude Assessments Effective July 6, 2015, Argus is adding the following new codes to the Argus European Crude data module. The following PA code details will appear in the DLC module in the DCRDEEU folder on ftp.argusmedia.com. These daily codes have time stamps of 0, continuous forwards of 0, and are in USD/bl.

PA-code Price type Description Differential basis Category PA0016212 1, 2, 3 Jubilee North Sea Dated >Crude>West Africa PA0016230 1, 2, 3 Usan North Sea Dated >Crude>West Africa See the original announcement.

ZEMA collects over 100 Argus reports regularly, more than 40 of which pertain to petroleum products. To find out how ZEMA can convert this data into sophisticated analyses, visit www.ze.com/the-zema-solutions/analytics.

Argus Adds New North Sea Crude Assessments Effective June 29, 2015, Argus added the below new codes to the Argus European crude data module and Argus Asia & Midday European crude data module. The following PA code details appear in the DLC module in the DCRDEEU folder on ftp.argusmedia.com and the DMC module in the DCRDEASIA folder on ftp.argusmedia.com. These daily codes have time stamps of 6, price types of 8, continuous forwards of 0, and are in USD/bl.

PA-code Description Category PA0016796 North Sea intermonth month1/month2 >Crude>North Sea PA0016797 North Sea intermonth month2/month3 >Crude>North Sea PA0016798 North Sea intermonth month3/month4 >Crude>North Sea See the original announcement.

Argus Adds US-Taiwan Isoprene Series Effective June 22, 2015, Argus has started the following series in the Argus DeWitt C5 and Hydrocarbon Resins data feed. For FTP subscribers, these changes apply to the dhydrocarbons file in the DHydrocarbons folder of ftp.argusmedia.com. This monthly code has a time stamp of 0, a price type of 8, a continuous forward of 1, and is in USD/t.

PA-code Description Category

PA0016887 Isoprene US import cif Taiwan month >Petrochemicals>Hydrocarbons See the original announcement.

ZEMA collects more than 90 Argus reports from North America alone, more than 40 of which pertain to petroleum products. To find out how ZEMA can analyze this data and share this analysis with downstream systems, visit www.ze.com/the-zema-solutions.

June 2015 13 Petroleum Argus Introduces North American Base Oil Assessments Effective June 6, 2015, Argus added the following new codes to the Argus Base Oils data module. The following PA code details will appear in the dbo and dbow files in the DBASEOILS folder onftp.argusmedia.com. The csv PA-code details are listed below. These weekly codes have time stamps and continuous forwards of 0: Price PA-code Description Unit Category type Base oil Group 2+ 110/130 PA0015538 8 Safety-Kleen US midcontinent and USD/USG >Base oils>US>Group II+ Canada $/USG Base oil Group 2+ N240 Safety-Kleen PA0015539 8 USD/USG >Base oils>US>Group II+ US midcontinent and Canada $/USG Base oil Group 2+ 110/130 PA0015540 8 Safety-Kleen US midcontinent USD/t >Base oils>US>Group II+ and Canada $/t Base oil Group 2+ N240 Safety-Kleen PA0015541 8 USD/t >Base oils>US>Group II+ US midcontinent and Canada $/t See the original announcement.

Argus Launches New German and French Gasoil Heating Oil Codes Effective May 29, 2015, Argus added child codes for German gasoil heating oil NWE and French gasoil heating oil W MED. Fridays snapshots which will be publishing in Argus Export Nefteproduktov. The following codes have a time stamp of 6, a continuous forward of 0, and are in USD/t.

Differential PA-code Price type Description Category basis Gasoil heating oil German Ice Gasoil >Products>Gasoil/Diesel/ PA5001546 1, 2, 6, 7 NWE cif Fri snapshot Settlement Heating oil>Northwest Europe Gasoil heating oil French W Ice Gasoil >Products>Gasoil/Diesel/ PA5001547 1, 2, 6, 7 Med cif Fri snapshot Settlement Heating oil>Mediterranean See the original announcement.

With ZEMA, you can access daily data reports on heating oil from Platts, ICE, and the EIA. To find out how ZEMA can use this data to increase your company’s market intelligence, book a free demo at www.ze.com/book-a-demo.

June 2015 14 Petroleum Argus Adds Light and Heavy Basrah FOB Assessments Effective May 22, 2015, Argus added the below new codes to the DAGM data module in the DAGM folder of the ftp.argusmedia.com server. These weekly assessments have time stamps of 8 and are in USD/bl.

Continuous Differential PA-code Price type Description Category forward basis Basrah Light fob Iraq PA5001538 1, 2, 3 1 Formula >Crude>Mideast Gulf month snapshot Basrah Light fob Iraq PA5001541 1, 2, 3 0 Formula >Crude>Mideast Gulf month weekly avg Basrah Heavy fob Iraq PA5001542 1, 2, 3 1 Formula >Crude>Mideast Gulf month snapshot Basrah Heavy fob Iraq PA5001545 1, 2, 3 0 Formula >Crude>Mideast Gulf month weekly avg See the original announcement.

Furthermore, on May 29, 2015, Argus added the following Basrah light and heavy FOB assessments. These weekly assessments are also in USD/bl, have continuous forwards of 0, time stamps of 8.

Differential PA-code Price type Description Category basis Basrah Light fob Iraq month PA5001539 1, 2, 3 Formula >Crude>Mideast Gulf monthly avg Basrah Heavy fob Iraq month PA5001543 1, 2, 3 Formula >Crude>Mideast Gulf monthly avg See the original announcement.

As well, on June 30, 2015, Argus added the below codes to the DAGM data module in the DAGM folder of the ftp.argusmedia.com server. These weekly codes have time stamps of 8, continuous forwards of 0, and are in USD/bl.

Differential PA-code Price type Description Category basis Basrah Light fob Iraq month PA5001540 1, 2, 3 Formula >Crude>Mideast Gulf quarterly avg Basrah Heavy fob Iraq month PA5001544 1, 2, 3 Formula >Crude>Mideast Gulf quarterly avg See the original announcement.

June 2015 15 Petroleum CME Lists Two Existing Heating Oil Futures on CME Globex Effective June 14, 2015, New York Mercantile Exchange, Inc. (NYMEX) listed two existing futures contracts on the CME Globex trading platform as described in the table below.

Clearing CME Globex CME Globex Listing Contract Titles Rule Chapter Code Code Schedule

Gulf Coast Heating Oil (Argus) vs. 244 7U 7U 36 consecutive months New York Harbor ULSD Futures

Gulf Coast Heating Oil (Argus) 243 4U 4U 36 consecutive months Futures These contracts will continue to be available for trading on the NYMEX trading floor and for clearing through CME ClearPort with an unchanged listing schedule. The CME Globex trading hours for these contracts will be: Sunday – Friday 6:00 p.m. – 5:15 p.m. with a 45-minute break each day beginning at 5:15 p.m. See the original announcement.

ZEMA collects more than 100 regular reports from CME, including more than 20 on petroleum and other liquids. To learn more about ZEMA’s extensive data coverage, visit www.ze.com/the-zema-solutions/data.

Platts Discontinues Rubber Index Newsletter Effective June 15, 2015, Platts has discontinued the Platts Rubber Index (RBX) newsletter. Natural rubber assessments will still be available on Platts Petrochemical Alert page 680 (PCA680), the Olefinscan, and under the following codes in the Platts price database until further notice: Platts Rubber Index Daily NOON Assessments • Rubber TSR 20 FOB Singapore Mo01 USD • Rubber RSS 3 FOB Singapore Mo02 USD KG AAWDN00 KG AAWDT00 • Rubber TSR 20 FOB Singapore Mo01 USD • Rubber RSS 3 FOB Singapore Mo02 USD MT AAWDM00 MT AAWDS00 • Rubber TSR 20 FOB Singapore Mo02 USD • Platts Rubber Index Daily NOON KG AAWDN00 Assessments Mavg Wavg • Rubber TSR 20 FOB Singapore Mo02 USD • Rubber TSR 20 FOB Singapore Mo01 USD MT AAWDM00 KG AAWDF00 AAWDF03 AAWDF04 • Rubber RSS 3 FOB Singapore Mo01 USD • Rubber TSR 20 FOB Singapore Mo01 USD KG AAWDR00 MT AAWDE00 AAWDE03 AAWDE04 • Rubber RSS 3 FOB Singapore Mo01 USD • Rubber TSR 20 FOB Singapore Mo02 USD MT AAWDQ00 KG AAWDH00 AAWDH03 AAWDH04

June 2015 16 • Rubber TSR 20 FOB Singapore Mo02 USD • Rubber RSS 3 FOB Singapore Mo02 USD Petroleum MT AAWDG00 AAWDG03 AAWDG04 KG AAWDL00 AAWDL03 AAWDL04 • Rubber RSS 3 FOB Singapore Mo01 USD • Rubber RSS 3 FOB Singapore Mo02 USD KG AAWDJ00 AAWDJ03 AAWDJ04 MT AAWDK00 AAWDK03 AAWDK04 • Rubber RSS 3 FOB Singapore Mo01 USD MT AAWDI00 AAWDI03 AAWDI04

See the original announcement.

Platts Discontinues Gasoil Minus Palm Oil Spread Effective June 11, 2015, Platts discontinued its GO-PO spread, which reflected the value of first-month InterContinental Exchange (ICE) gasoil futures, as listed by ICE, against first-month crude palm oil futures, as listed on Bursa Malaysia, at 4:30 p.m. Singapore time (8:30 GMT). GO-PO measured the spread as gasoil minus Palm oil, while in the general market the spread is typically expressed as Palm oil minus gasoil. The GO-PO spread, under the assessment symbol code BMAAB00, was published in Platts Biofuelscan. See the original announcement.

Platts Stops Publishing ICE Brent UK Assessments Effective May 14, 2015, Platts stopped publishing ICE Brent NX assessments because ICE delisted the contract. ICE Brent NX assessments were published on Platts Global Alert pages 702 and 703, in the Oilgram Price Report, and in the Crude Oil Marketwire. The prices were also published in Platts Market Data under the following codes: AAXZL00, AAXZM00, AAXZN00, and AAYAP00. See the original announcement.

The graph below illustrates the price difference of Brent crude on CME NYMEX during the week of June 15, 2015. Data: ZEMA CME NYMEX Futures Settlement report. Leverage ZEMA’s sophisticated analytical functionalities to make more informed trading decisions about petroleum prices. To learn more, book a complimentary ZEMA demonstration.

June 2015 17 Petroleum

Argus Stops Two West African Oil Assessments As of July 3, 2015, Argus stopped the following price series in the Argus West Africa Oil publication and data module. The following PA codes no longer appear in the DWAFO module in the \DWAFO folder on the ftp.argusmedia.com server. These daily assessments had time stamps of 0, continuous forwards of 0, and were in USD/bl.

PA-code Price type Description Differential basis Category

PA0016212 3, 8 Jubilee North Sea Dated >Crude>West Africa

PA0016230 3, 8 Usan North Sea Dated >Crude>West Africa See the original announcement.

Argus Stops Certain Russian Gasoil Assessments Effective June 1, 2015, Argus stopped the below codes for Russian Gasoil in Argus Export Nefteproduktov. These assessments had a time stamp of 6, a continuous forward of 0, and were in USD/t.

PA-code Price type Description Differential basis Category

Gasoil Russian cargo NWE Ice Gasoil >Products>Gasoil/Diesel/ PA5001265 1, 2, 6, 7 cif Fri Snapshot Settlement Heating oil>Russia

Gasoil Russian cargo W Ice Gasoil >Products>Gasoil/Diesel/ PA5001266 1, 2, 6, 7 Med cif Fri Snapshot Settlement Heating oil>Russia See the original announcement.

June 2015 18 Petroleum

Argus Amends Descriptions for Mediterranean Fuel Oil Assessments On July 1, 2015, Argus changed the descriptions for the following codes belonging to DFSUE and DLP. The current and previous descriptions are noted below. These assessments have time stamps of 6, continuous forwards of 0, and are in USD/t.

PA-code Price type Old Description New Description Category Frequency

Fuel oil 3.5% Fuel oil 3.5% W Med >Products>Fuel PA5000855 1, 2, 8 0.998 W Med cif Weekly cif wed snapshot oil>Mediterranean wed snapshot Fuel oil 3.5% Fuel oil 3.5% >Products>Fuel PA0000761 1, 2, 8 Daily 0.998 W Med cif W Med cif oil>Mediterranean

Fuel oil 3.5% Fuel oil 3.5% W Med >Products>Fuel PA0000762 1, 2, 8 Daily 0.998 W Med fob fob oil>Mediterranean Fuel oil 3.5% Fuel oil 3.5% W Med >Products>Fuel PA0008660 1, 2, 8 0.998 W Med cif Monthly cif average month oil>Mediterranean average month Fuel oil 3.5% Fuel oil 3.5% W Med >Products>Fuel PA0008661 1, 2, 8 0.998 W Med fob Monthly fob average month oil>Mediterranean average month See the original announcement.

June 2015 19 Natural Gas 20

Category >Natural gas> Europe>Zeebrugge >Natural gas> Europe>Zeebrugge Unit p/th Euro/ MWh Differential basis - - Description Natural gas Zeebrugge p/th Gas year Natural gas Zeebrugge Eur/ MWh Gas year Continuous forward 1, 2 1, 2 Price type 1, 2, 8 1, 2, 8

PA-code PA0016847 PA0016848 therefore benefit from margin offsets and capital efficiencies at ICE Clear Europe. therefore benefit from margin offsets and capital Load and Italian Power Peak Load futures contracts at ICE Endex. Market participants can at ICE Endex. Market participants Load and Italian Power Peak Load futures contracts addition, PSV futures contracts will trade alongside the recently launched Italian Power Base the recently launched Italian addition, PSV futures contracts will trade alongside implied and locational spreads between ICE’s natural gas hubs, such as TTF and PSV. In gas hubs, such as TTF and implied and locational spreads between ICE’s natural participants trading the new PSV contracts on the ICE trading platform will be able to trade ICE trading platform will be able participants trading the new PSV contracts on the markets across the NBP, TTF, ZTP, NCG and GASPOOL natural gas trading hubs. Market natural gas trading hubs. markets across the NBP, TTF, ZTP, NCG and GASPOOL June 2015 The launch of PSV futures extends ICE’s European natural gas offering, which includes futures natural gas offering, which includes The launch of PSV futures extends ICE’s European See the original announcement. exchange to create a solution for the physical delivery of natural gas futures contracts in Italy. of natural gas futures contracts exchange to create a solution for the physical delivery Snam, the Italian transmission systems operator, and the Italian authorities, ICE is the first and the Italian authorities, ICE Snam, the Italian transmission systems operator, In collaboration with GME, the Italian exchange for electricity and natural gas spot trading, electricity and natural gas spot In collaboration with GME, the Italian exchange for and Snam S.p.A., and in compliance with Italian law. and Snam S.p.A., and in compliance with Italian – Virtual Trading Point; PSV) in cooperation with Gestore dei Mercati Energetici S.p.A (GME) Gestore dei Mercati Energetici S.p.A – Virtual Trading Point; PSV) in cooperation with introduce physically delivered Italian natural gas futures contracts (Punto di Scambio Virtuale futures contracts (Punto di Scambio introduce physically delivered Italian natural gas On September 14, 2015, Intercontinental Exchange (ICE) Endex expects to On September 14, 2015, Intercontinental Exchange ZEMA collects over 700 data reports regarding natural gas. To learn more about ZEMA’s vast data library, visit www. visit learn more about ZEMA’s vast data library, ZEMA collects over 700 data reports regarding natural gas. To ze.com/the-zema-solutions/data-coverage. ICE, GME, and Snam to Introduce Futures Italian Gas Natural See the original announcement. stamp of 6 and a daily frequency. DNG module in the DENG folder on ftp.argusmedia.com. These assessments have a time folder on ftp.argusmedia.com. These assessments DNG module in the DENG . The following PA code details will appear in the PA code details will appear Natural Gas. The following Argus European ArgusLaunches Zeebrugge Assessments Gas Natural the following codes to 2015, Argus introduced As of July 1, Coal 21

Category >Coal>Americas>Illinois Basin >Coal>Americas>Illinois Basin Description IL Basin 6.0+ 11000 IL Indiana Mine quarter IL Basin 5.0 11500 IL Indiana Mine quarter Price type 1, 2, 8 1, 2, 8

PA-code PA0002471 PA0002473 June 2015 USD/st. The following weekly codes have time stamps of 21, continuous forwards of 1, and are in 21, continuous forwards of 1, and The following weekly codes have time stamps of in the dctr in the DCTR folder onftp.argusmedia.com. Argus Coal Transportation data module. The following PA code details will appear PA code details will appear Argus Coal Transportation data module. The following Argus Coal Adds US Assessments codes to the As of June 16, 2015, Argus has added the following ZEMA collects more than 20 different coal records from Platts alone. For a complimentary demo on how ZEMA’s data alone. For a complimentary demo on how ZEMA collects more than 20 different coal records from Platts . coverage can be specialized for your company’s needs, visit www.ze.com/book-a-demo See the original announcement. Platts’ weekly coal assessments for the US physical market are published in the Platts’ weekly coal assessments for the US physical typical sulfur content of 5 lbs SO2/MMBtu FOB barge. The price will be reported in $/st. lbs SO2/MMBtu FOB barge. The price will be reported typical sulfur content of 5 day of the week. Weekly Price Survey, Traditional Physical Market table on the final business Platts to Assess FOB 11,800 Coal Illinois Basin Basin announced its intention to assess a weekly price On June 10, 2015, Platts The specifications for the coal are an average heat content of 11,800 Btu/lb with coal are an average heat content of 11,800 Btu/lb The specifications for the forward calendar year. will reflect the price of such coal in the US physical market for three forward quarters and one quarters coal in the US physical market for three forward will reflect the price of such for Illinois Basin 11,800 Btu/lb, 5 lbs SO2/MMBtu FOB barge coal. The weekly assessment weekly assessment Btu/lb, 5 lbs SO2/MMBtu FOB barge coal. The for Illinois Basin 11,800 Coal

PA-code Price type Description Category

PA0002480 1, 2, 8 Pittsburgh Seam 4.5 13000 quarter >Coal>Americas>Pittsburgh Seam

PA0002481 1, 2, 8 Pittsburgh Seam 3.5 13000 quarter >Coal>Americas>Pittsburgh Seam

Colorado/Utah 11300 Western PA0002483 1, 2, 8 >Coal>Americas>Colorado/Utah Bituminous quarter Colorado/Utah 11700 Uinta Basin PA0002484 1, 2, 8 >Coal>Americas>Colorado/Utah Utah quarter >Coal>Americas>Central PA0002627 1, 2, 8 Central Appalachia Nymex Spec quarter Appalachia Central Appalachia 1.6 12500 CSX >Coal>Americas>Central PA0002630 1, 2, 8 quarter Appalachia >Coal>Americas>Powder River PA0002632 1, 2, 8 Powder River Basin 0.8 8400 quarter Basin >Coal>Americas>Powder River PA0002633 1, 2, 8 Powder River Basin 0.8 8800 quarter Basin Central Appalachia <1% 12000 CSX >Coal>Americas>Central PA0012569 8 quarter Appalachia See the original announcement.

CME Lists Existing Coking Coal Contract on CME Globex Trading Effective June 14, 2015, New York Mercantile Exchange, Inc. (NYMEX) listed an existing futures contract on the CME Globex trading platform as described in the table below.

Clearing Contract Titles Rule Chapter CME Globex Code CME Globex Listing Schedule Code

Australian Coking Coal Current year plus the next 1111 ALW ALW (Platts) Low Vol Futures three calendar years This contract will continue to be available for trading on the NYMEX trading floor and for clearing through CME ClearPort with an unchanged listing schedule. The CME Globex trading hours for this contract will be: Sunday – Friday 6:00 p.m. – 5:15 p.m. with a 45-minute break each day beginning at 5:15 p.m. See the original announcement.

ZEMA regularly collects nearly 150 data reports on coal. To learn how ZEMA uses this data to create impressive analyses and forward curves, visit www.ze.com/the-zema-solutions.

June 2015 22 Softs and Metals 23 Category >Fertilizer>Potash >Fertilizer>Nitrogen >Fertilizer>Nitrogen

Description Muriate Of Potash granular fca bulk Belgium 15-15-15 cpt bulk France CAN 27% bulk cpt France Price type 1, 2 1, 2 1, 2

PA-code PA0016833 PA0016834 PA0016835 June 2015 codes have time stamps of 0, continuous forwards of zero 0, and are in Euro/t. codes have time stamps of 0, continuous forwards appear in the DEuroFert module in the DEuroFert folder on ftp.argusmedia.com. These weekly folder on ftp.argusmedia.com. appear in the DEuroFert module in the DEuroFert publication and data module. The following PA code details will Argus FMB Fertilizer Europe publication and data module. The following PA code Argus Adds European Fertilizer Assessments new series to the Effective July 3, 2015, Argus added the following assessments historically. such as 2015D6 for 2015 ethanol RINs to offer an alternative solution for tracking the alternative solution for tracking such as 2015D6 for 2015 ethanol RINs to offer an See the original announcement. Under the proposed method, Platts would introduce supplementary identifying codes supplementary identifying codes Under the proposed method, Platts would introduce RINs are RINCY01 for 2014 ethanol RINs and RINCY02 for 2015 ethanol RINs. RINs are RINCY01 for 2014 ethanol RINs and RINCY02 the Renewable Fuel Standard. For example, the current codes for corn-based ethanol (D6) codes for corn-based ethanol the Renewable Fuel Standard. For example, the current identifying RINs assessments, Platts uses rolling codes aligned with compliance years under codes aligned with compliance identifying RINs assessments, Platts uses rolling As of July 27, 2015, Platts intends to introduce identifying codes to As of July 27, 2015, Platts for system current would supplement the existing RINs codes. In the each calendar year and Platts to Introduce Supplementary Biofuels RIN Codes to unique be Identification Number) assessments, which would biofuels RINs (Renewable SOFTS Softs and Metals PA-code Price type Description Category

PA0016836 1, 2 Potash Granular MOP bulk fca France >Fertilizer>Potash See the original announcement.

ZEMA can help you keep you up to date on more than 700 regular Argus reports, including several on softs. To find out how, book a free demo at www.ze.com/book-a-demo.

Argus Introduces Algerian Urea Granular Bulk FOB Assessment Effective May 21, 2015, Argus Media introduced the following new weekly assessment to the Argus FMB Weekly Nitrogen report and datafeed. The assessment is in USD/t and has a timestamp and continuous forward of 0.

PA-code Price type Description Category

PA0016786 1, 2 Urea granular bulk fob Algeria >Fertilizer>Urea See the original announcement.

TMX Group Launches AgriClear Platform for US and Canadian Cattle Buyers and Sellers On June 16, 2015, TMX Group announced the launch of AgriClear, an online platform designed to provide US and Canadian cattle buyers and sellers with an efficient, cost-effective transaction and payment service. AgriClear offers cattle producers a new way to do business with benefits for both buyers and sellers, including assured payment for cattle delivered at the terms negotiated. AgriClear allows marketers to securely list and execute cattle transactions from their computer. AgriClear has offices in Calgary, Houston, Bowling Green (Kentucky), and Greeley (Colorado) and is designed to provide a lower cost structure, an expanded market with a broader network of verified members, and financial certainty for transactions, with NGX acting as administrator of AgriClear’s back-office payment and settlement services. See the original announcement.

ZEMA regularly collects more than 100 data reports on softs. To learn more about ZEMA’s extensive data coverage, visit www.ze.com/the-zema-solutions/data-coverage.

June 2015 24 Softs and Metals Platts to Discontinue non-Renewable Energy Directive Biodiesel FOB ARA Assessments Effective January 1, 2016, Platts proposes to discontinue all biodiesel FOB ARA assessments for product not certified as compliant with the EU’s Renewable Energy Directive. The following assessments would be discontinued:

• Biodiesel FAME -10 FOB Rdam Barge $/mt • Biodiesel FAME 0 FOB Rdam Barge $/mt AAWGY00 WAvg AAXQL04 • Biodiesel FAME 0 FOB Rdam Barge $/mt • Biodiesel RME FOB ARA Barge $/mt WAvg AAXQL00 AAUCA04 • Biodiesel RME FOB ARA Barge $/mt • Biodiesel FAME -10 FOB Rdam Barge $/mt AAUCA00 MAvg AAWGY03 • Biodiesel Europe Premium (non-RED) • Biodiesel FAME 0 FOB Rdam Barge $/mt FAME 0 FOB ARA $/Mt AAXNV00 MAvg AAXQL03 • Biodiesel Europe Premium (non-RED) RME • Biodiesel RME FOB ARA Barge $/mt MAvg FOB NWE $/Mt AAXNW00 AAUCA03 • Biodiesel FAME -10 Brg ARA $/MT WAvg See the original announcement. AAWGY04

Platts Ends non-Renewable Energy Directive European SME Biodiesel Assessment Effective May 30, 2015, Platts has discontinued its assessment for Northwest European SME biodiesel, holding no proof of 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. See the original announcement.

June 2015 25 Softs and Metals

Platts to Launch Minimum Greenhouse Gas Saving for Standard T2 Ethanol Effective October 19, 2015, Platts’ standard T2 ethanol FOB Rotterdam assessments will include a minimum greenhouse gas saving when compared to the fossil fuel comparator, as per the European Union’s Fuel Quality Directive calculation. Platts invites feedback regarding the actual level which should be set for the minimum greenhouse gas saving spec for the standard T2 ethanol assessment. Platts continues to monitor the activity and development of the European ethanol market in light of the change to the German domestic biofuel mandate and will adapt its methodology as necessary to reflect standard spot market trade flows. The fossil fuel comparator and greenhouse gas saving calculation reflected will be per the prevailing implementation of the Fuel Quality Directive in Germany. All other specifications will conform to the prevailing Renewable Energy Directive 2009/28/EC. See the original announcement.

ZEMA’s vast data coverage comprises records on many kinds of agricultural products, including ethanol. To learn more, visit www.ze.com/the-zema-solutions/data-coverage.

The graph below shows the EIA’s carbon emissions forecasts for coal, natural gas, and petroleum in contrast to expected totals up until the end of 2016. Data: ZEMA EIA Forecast STEO – Macroeconomic Energy Indicators report. Keep track of global emissions updates using ZEMA’s data collection and validation tools. To learn more, book a complimentary ZEMA demonstration.

June 2015 26 Softs and Metals

Argus Revises and Replaces Select European Fertilizer Codes As of July 3, 2015, Argus has changed the descriptions for the following codes.

PA-code Old description New description

Ammonium Nitrate 33.5% delivered bulk PA0012893 Ammonium Nitrate 33.5% cpt bulk France France

PA0012897 0-25-25 delivered bulk France 0-25-25 cpt bulk France

PA0012899 N+S 24N + 15SO3 delivery bulk France N+S 24N + 15SO3 cpt bulk France Furthermore, Argus replaced the following codes.

Start Replacement Replacement Replacement PA-code Description End date date Code Description Start Date

Muriate Of Muriate Of Potash 15-Jan- 03-Jul- PA0012889 Potash granular cif PA0016833 granular fca bulk 03-Jul-2015 2010 2015 bulk Belgium 17-17-17 25-Oct- 03-Jul- 15-15-15 cpt PA0012898 delivered bulk PA0016834 03-Jul-2015 2013 2015 bulk France France See the original announcement.

Metals

Platts to Add New US Lead-Acid Battery Assessment As of August 4, 2015, Platts intends to launch a new weekly price assessment for scrap used lead-acid batteries reflecting market activity in the US Northeast, and to clarify the specification and name of its existing Midwest lead-acid battery assessment. The new assessment would be for used 50% lead-acid, starter lighter ignition automotive batteries, picked up US Northeast, with the northeastern region for price normalization to include New York, New Jersey, Pennsylvania, Delaware, Maryland, Connecticut, Massachusetts, Vermont, New Hampshire, Rhode Island, Maine, and Ontario, Canada. The specification would be for a minimum quantity of one truckload (42,000-44,000 lb), normalized to a typical order size one to five truckloads, packaged in shrink-wrapped pallets or skids, pallet size 40” or 44” by 48”, maximum 3,600 lb/skid, no more than three battery layers separated by cardboard sheets; assessed in a cents/lb range reflecting the majority of business, normalized to a picked-up US Northeast basis, delivery within 30 days, net-30-day payment terms.

June 2015 27 Platts is also clarifying that the name of its existing lead-acid battery price assessment Softs and Metals (MMLAA04) is used lead-acid batteries picked-up US Midwest, and that the assessment is normalized to a Midwest region including Ohio, Michigan, Wisconsin, Minnesota, Indiana, Illinois, Kansas, Nebraska, Missouri, Iowa, and Arkansas. Other specifications remain unchanged, in line with the specifications for the new assessment. Both assessments would be assessed once a week on Tuesdays or the closest business day through a survey of secondary lead smelter buyers, scrap dealers/processors, traders, and brokers. See the original announcement.

ZEMA collects more than 90 metals records from Platts alone. To gain a wider perspective on the metals market and find out how the ZEMA solution can enhance your company’s business processes, visit www.ze.com/the-zema-solutions.

Platts Launches European Iron Ore Netback Assessments As of July 1, 2015, Platts began publishing an IODEX 62% Fe iron ore netback assessment CFR Europe. Platts will publish, on a daily basis, the value of iron ore reflected in Platts benchmark IODEX assessment CFR China, implied on a CFR Rotterdam basis. The value will be determined by applying a simple netback calculation, adding Capesize Tubarao to Rotterdam sea freight to Platts’ existing IODEX netback Brazil Capesize (IONBB00). The assessment will be published on a dollar/dry metric ton basis and a monthly average would also be available. IODEX netback Rotterdam will follow the publishing schedule for IODEX in Singapore, provided it is not a public holiday in the UK on the same date. See the original announcement.

Platts Publishes Direct Reduction Iron Ore Pellet Premium Effective July 1, 2015, Platts began publishing a monthly assessment for Direct Reduction Iron Ore Pellet Premiums (DR Pellet Premiums). The DR pellet premium assessment complements the existing Atlantic Basin Blast Furnace Iron Ore Pellets Estimated Monthly Contract Price and reflects premiums paid under contract volumes for DR pellet globally. The assessment reflects the premium paid for a high quality 67.5% Fe DR grade pellet, net of any further quality adjustments over a 65% Fe basis. The premium will be published on a dollar/dry metric ton basis. The DR pellet specification will reference 67.5% Fe, 1.5% Silica, 300 CCS, and sizing over 9 mm >94%. The assessment will be published in Platts SBB Steel Markets Daily, on Platts Metals Alert, and in the Platts SBB Steel Price Analyzer. See the original announcement.

ZEMA collects more than 200 metals records, several of which regard iron products. To receive a complimentary ZEMA demonstration, visit www.ze.com/book-a-demo.

June 2015 28 Softs and Metals Argus Introduces Chinese Erbium Oxide Assessment On July 2, 2015, Argus introduced the following new assessment to Argus Rare Earths report and associated data feed. The data series is available in DRareEarths data module in /DRareEarths folder on ftp.argusmedia.com. This daily assessment has a time stamp of 0, a continuous forward of 0, and is in CNY/t.

PA-code Price type Description Category

Erbium oxide min 99.5% PA0016805 1, 2 >Metals - Non-ferrous>Rare Earths>Asia-Pacific ex-works China See the original announcement.

CME Lists Five Existing Metals Futures on CME Globex Effective June 14, 2015, New York Mercantile Exchange, Inc. (NYMEX) listed five existing futures contracts on the CME Globex trading platform as described in the table below. CME Rule Clearing CME Globex Listing Contract Titles Globex Chapter Code Schedule Code

HMS 80/20 Ferrous Scrap, CFR Turkey 867 FSF FSF 24 consecutive months (Platts) Futures

European Hot Rolled Coil, Ex-Works Ruhr 871 NSF NSF 24 consecutive months Germany (Platts) Futures

Iron Ore 62% Fe, CFR North China Current year and the next 925 PIO PIO (Platts) Futures two calendar years

Chinese Steel Rebar HRB400 1286 RBR RBR 12 consecutive months (Mysteel) Futures

Steel Billet, FOB Black Sea (Platts) Futures 869 SSF SSF 24 consecutive months

These contracts will continue to be available for trading on the NYMEX trading floor and for clearing through CME ClearPort with an unchanged listing schedule. The CME Globex trading hours for these contracts will be: Sunday – Friday 6:00 p.m. – 5:15 p.m. with a 45-minute break each day beginning at 5:15 p.m. See the original announcement.

ZEMA collects more than 200 reports on various metals from around the world. This data can then be used to create advanced analyses and forward curves before being pushed to downstream systems. To learn what ZEMA can do for your business, book a free demo at www.ze.com/book-a-demo.

June 2015 29 Softs and Metals The ZEMA graph below shows forecasted copper spot prices for the next four years based on data from the London Metal Exchange. Data: ZEMA LME Official Prices Report. The prices are represented by the graph, which can be easily applied as one of ZEMA’s many visualization options, and graphs can be viewed instantly as the analytics are built. To learn more about how ZEMA can help with your data and analysis needs, book a complimentary ZEMA demonstration.

COMOX Lists Physically-Delivered Zinc Futures on CME Effective June 28, 2015, Commodity Exchange, Inc. (COMEX) listed a new physically-delivered zinc futures contract (commodity code: ZNC; rulebook chapter 186). This contract is available for trading on CME Globex and for submission for clearing through CME ClearPort. The contract specifications are provided below:

Contract Name Zinc Futures

Commodity Code ZNC

Rulebook Chapter 186

Contract Size 25 metric tons

Listing Schedule CME Globex and CME ClearPort: 12 consecutive months

Termination of Trading Third last business day of the contract month

Minimum Price Fluctuation $0.50

Delivery Day All business days during the delivery month

Value per Tick $12.50

First Listed and Delivery Month October 2015

June 2015 30 Softs and Metals Block Trade Minimum Threshold 10 contracts

CME Globex Match Algorithm First In First Out (FIFO) See the original announcement.

Platts to Discontinue Numerous US Minor Metals Prices As of January 7, 2016, Platts intends to discontinue publishing proprietary and third-party minor metals prices and assessments, with the exception of cobalt. As such, the last date of publication would be Thursday, December 31, 2015. The prices to be discontinued are: • New York Dealer Antimony AALXR00 • New York Dealer Selenium MMAKI00 • New York Dealer Bismuth MMADA00 • Indium Corp North American Producer • New York Dealer Cadmium 99.95% Price AALXS00 MMADA00 • Mercury Free Market MMADJ00; Mercury • New York Dealer Cadmium 99.95% Free US Domestic MMAKK00 Market AALXQ00 • Rhenium AAGTD00; New York Dealer • Indium New York Dealer MMAKI00 Selenium AAGTD00 These prices would no longer be published on Platts Metals Alert or in Platts Metals Daily, Platts Market Center, and Market Data. Platts will continue to assess and publish its full suite of cobalt prices. The minor metals markets are extremely illiquid, and mercury, cadmium, and selenium are becoming largely obsolete and being replaced by other materials in industrial usage on technical and environmental merits. See the original announcement.

Platts Discontinues LBMA Platinum and Palladium Prices Effective July 1, 2015, Platts has stopped publishing the morning and afternoon London Bullion Market Association platinum and palladium prices. As such, the last date of publication was Tuesday, June 30, 2015. These prices are longer published on Platts Metals Alert, Platts Metals Daily, the LME Close edition of Platts Metals Daily, Platts Market Center, and Market Data. These prices were administered by the London Metal Exchange since December 1, 2014. See the original announcement.

June 2015 31 Finance 32

June 2015 ICE platform. and options contracts based on the Eris Methodology patent-pending product design on the patent-pending product design and options contracts based on the Eris Methodology In December 2014, ICE entered into a multi-year license agreement with Eris to list futures license agreement with Eris to In December 2014, ICE entered into a multi-year ICE plans to launch Eris iTraxx Main and Eris iTraxx Crossover during the second half of 2015. Crossover during the second half ICE plans to launch Eris iTraxx Main and Eris iTraxx cash-settled futures contracts, without physical delivery risk at maturity. cash-settled futures contracts, without physical delivery data, visit how ZEMA can collect, aggregate, and analyze ZEMA collects more than 100 ICE records. To learn more about www.ze.com/the-zema-solutions. contract features include capital, margin, and operational efficiencies of exchange-traded, exchange-traded, capital, margin, and operational efficiencies of contract features include See the original announcement. (PAI), which are incorporated into a single futures-style variation margin cash flow. Additional Additional flow. into a single futures-style variation margin cash (PAI), which are incorporated comparable swaps traded in the over-the-counter market, including Price Alignment Interest Alignment in the over-the-counter market, including Price comparable swaps traded Eris interest rate futures contracts replicate all of the cash flows and economics of contracts replicate all of the cash flows and economics Eris interest rate futures future contracts. of Eris Exchange US dollar-denominated Eris Standard Swap future and Eris Flex Swap Swap Flex Eris Standard Swap future and Eris of Eris Exchange US dollar-denominated and clear at ICE Futures Europe and ICE Clear Europe. They are based on the product design design the product Europe and ICE Clear Europe. They are based on and clear at ICE Futures Eris Standard EUR Interest Rate futures and Eris Standard GBP Interest Rate futures, will trade will futures, Rate futures and Eris Standard GBP Interest Rate Eris Standard EUR Interest futures contracts denominated in Euro (EUR) and Pound Sterling (GBP). The new contracts, contracts, new in Euro (EUR) and Pound Sterling (GBP). The futures contracts denominated Futures in Euro and Pound Sterling rate interest Exchange (ICE) launched Eris standard On June 29, 2015, the Intercontinental ICE Launches Eris Standard Interest Rate Finance Thomson Reuters Launches New Valuations and Transparency Capability On June 23, 2015, Thomson Reuters announced the launch of Thomson Reuters Pricing Service Plus (TRPS Plus), a new DataScope capability for structured notes and hard-to-value over-the-counter (OTC) derivatives. TRPS Plus offers transparency into the evaluated price, methodologies, and market data associated with the price. TRPS Plus also provides risk analysis such as Value-at-Risk (VaR), Credit Valuation Adjustment (CVA) and Greeks. TRPS Plus is accessible via Thomson Reuters DataScope Select, the global data delivery platform for non-streaming content. TRPS Plus is an addition to Thomson Reuters Pricing Service (TRPS). Prices are delivered throughout the day or at market closing times around the world depending on the asset class, with supporting commentary to provide insight on the day’s events. With TRPS Plus in place, DataScope Select now covers more than 650 structured notes and derivatives. Combined with the legacy-Pricing Partners financial library, TRPS Plus effectively allows DataScope Select to deliver transparent pricing on all standard or non-standard derivatives. Valuation and risk reports are delivered intra-day or end-of-day according to customers’ requirements. See the original announcement.

Thomson Reuters Expands Coverage of Canada’s Fixed Income Market As of June 4, 2015, Thomson Reuters began offering increased depth of coverage in Canada’s fixed income markets from the electronic bond trading marketplace CBID, operated by Perimeter Markets Inc. Real-time price and yield data from CBID is now available on Thomson Reuters Eikon, the company’s flagship financial markets desktop, providing investors around the world with access to detailed information sourced from Canada’s only live bond marketplace. Customers can also access the market data via Elektron Real Time, a low-latency, consolidated real-time feed that provides normalized, full-tick, depth-of-market data from exchanges around the world in a format that can be integrated into proprietary and third party applications. Investors will have access to more than 3,500 lines of live inventory and depth-of-market data on Government of Canada and federal agency bonds, provincial bonds, municipal bonds, corporate bonds, strip bonds, and money markets. Data is based on live executable offerings (not indications of interest) from several of Canada’s leading fixed income broker dealers and includes historical reference data going back to 2002. See the original announcement.

ZEMA, ZE’s best-in-class data management solution, collects more than 75 records from Thomson Reuters on a daily basis. ZEMA can collect, display, and analyze data for market participants in any sector. For further information, visit www.ze.com/the-zema-solutions. June 2015 33 The graph below shows the historical trend of 10-year yields from selected Government of Finance Canada benchmark bonds. Data: ZEMA Bank of Canada Bond Yields Monthly report. To learn more about ZEMA’s robust analytical capabilities, book a complimentary ZEMA demo.

Nasdaq Lists Global X YieldCo Index ETF On May 28, 2015, Nasdaq announced that Global X Funds listed a new exchange-traded fund (ETF), the Global X YieldCo Index ETF (YLCO). YLCO seeks to provide investors with access to YieldCos, an emerging asset class of yield vehicles that are structured to deliver stable and growing dividend income derived from a portfolio of renewable energy assets. YieldCos looks for opportunities to add new operating assets to their portfolios, which can help grow cash flows and distributions to shareholders over time. See the original announcement.

ZEMA lets users stay up to date on a wide range of financial developments. ZEMA enables users to easily visualize data, news, and analytics in one screen, ensuring that users gain a global market snapshot. To learn more, visit www.ze.com/the-zema-suite/dashboard.

Nasdaq Lists Elkhorn S&P 500 Capital Expenditures ETF Effective May 27, 2015, Nasdaq announced that Elkhorn Investments listed a new ETF, The Elkhorn S&P 500 Capital Expenditures ETF (CAPX). CAPX tracks the performance of the S&P 500 Capex Efficiency Index, which is designed to provide exposure to the 100 constituents of the S&P 500 that have exhibited the strongest capital discipline, in the form of efficient capital expenditures, over the near term. The index focuses on capex efficiency, not just capex spending levels, providing exposure to stocks that have maximized sales per unit of capital expenditures. See the original announcement.

June 2015 34 Finance ICAP Launches First Matching Session in Investment Grade Corporate Eurobonds As of June 11, 2015, ICAP Global Broking has launched its first matching session in investment grade (IG) corporate Eurobonds, complementing ICAP’s existing execution model in this market. Accessed via ICAP Global Broking’s e-Commerce portal, the matching session takes place in the hybrid environment supported by ICAP voice brokers. See the original announcement.

Euronext Launches Country Indexes for Germany, Italy, and Spain Effective June 1, 2015, Euronext announced the launch of three country indexes: the Euronext Germany Index GR, the Euronext Italy Index, and the Euronext Spain Index. The indexes will serve as the underlying for new index futures and index options, which will be available for trading in the third quarter of 2015. The country indexes are composed of the 30 companies with the highest free float market capitalization listed on the main markets of the respective country, with a free float higher than 15% and a 12-month velocity score of 20 or more. The review of the composition and a capping of 20% for individual companies will take place annually in October with quarterly updates for the number of shares. In order to be able to offer investors greater transparency into the price performance of an index as well as the distributed dividends of the constituents, three different variants of the country indexes will be published: a price return, a net return, and a gross return index. Price return indexes do not take dividend payments into account, while gross return indexes include the fully paid dividends. Net return indexes include the paid dividends minus the applicable tax amount. Derivatives will be available on the price return variant of the Euronext Spain Index and the Euronext Italy Index and on the gross return variant of the Euronext Germany Index. See the original announcement.

ZEMA collects more than 25 NYSE Euronext data reports. This data can be viewed in conjunction with data from many other financial, commodity, or industry sources. To learn more about ZEMA’s analytical capabilities, visit www.ze.com/the-zema-solutions/analytics.

Nasdaq Lists Two New ProShares Biotech ETFs On June 23, 2015, Nasdaq announced that ProShares listed two new exchange-traded funds (ETFs), UltraPro Nasdaq Biotechnology ETF (UBIO) and UltraPro Short Nasdaq Biotechnology ETF (ZBIO). Both funds track the Nasdaq Biotechnology Index. ProShares is the world’s largest provider of geared ETFs. Geared ETFs are designed to offer knowledgeable investors the opportunity to act on their views, whether it’s hedging

June 2015 35 against downturns with inverse ETFs or using a leveraged ETF to get magnified exposure Finance to a benchmark. UBIO seeks to provide 3x and ZBIO seeks to provide -3x the daily performance of the Nasdaq Biotechnology Index, before fees and expenses. The Nasdaq Biotechnology Index is a modified capitalization weighted index that includes Nasdaq-listed companies classified as either biotechnology or pharmaceutical. See the original announcement.

CME Delists Two US Barclays Rate Futures Options and Contracts On June 8, 2015, the Chicago Mercantile Exchange (CME) delisted two interest rate contracts, as set out in the table below.

Product Name Chapter Clearing Code

Barclays US Aggregate Bond Index Futures 435 LBA

Barclays US Aggregate Bond Index Options 435A LBA These contracts were listed for trading on the CME trading floor and CME Globex. There was no open interest in these contracts. The respective product rule chapters and terms and conditions contained in the Position Limit, Position Accountability and Reportable Level Table located in the Interpretations and Special Notices Section of Chapter 5 (Trading Qualifications and Practices) of the CME Rulebook were removed from the Exchange Rulebook. See the original announcement.

SSE, CFFE, and Deutsche Börse to Launch an Offshore Chinese Market Effective May 27, 2015, Shanghai Stock Exchange (SSE), China Financial Futures Exchange (CFFE), and Deutsche Börse agreed on a strategic cooperation to launch a joint venture to develop and market financial instruments based on Chinese underlyings to international investors outside mainland China. The Venture is designed to support the internationalization of the Chinese currency; therefore, products will be offered in Renminbi. The company will be named “China Europe International Exchange” and will commence market operations in Q4 2015. The initial scope of product development will cover cash market products for market launch. Shanghai Stock Exchange and Deutsche Börse will each own 40% and China Financial Futures Exchange the remaining 20% of the venture. The new company will be incorporated in Germany. See the original announcement.

June 2015 36 Weather and Emissions 37

1 000 000 000 300 000 000 350 000 000 650 000 000 1 000 000 000 500 000 000 SEK SEK SEK SEK SEK SEK SE0005561693 SE0005561701 SE0005798816 SE0005798824 SE0005932266 SE0006452553 VASA 445 GB VASA 446 GB VASA 457 GB VASA 458 GB VASA 460 GB VASA 469 GB The proceeds raised should be used for projects and activities that The proceeds raised should be used for projects promote sustainability by an experienced The issuer shall provide a second opinion provided external party

Vasakronan AB Vasakronan AB Vasakronan AB Vasakronan AB Vasakronan AB Vasakronan AB June 2015 Second opinion – Bond List from the launch: Bonds included in Nasdaq Stockholm Sustainable Use of proceeds – Stockholm Rule Book for Issuers. In addition to this, the following will be reviewed: Issuers. In addition to this, the following will be Stockholm Rule Book for Issuers who want to list sustainable bonds at Nasdaq Stockholm need comply with Nasdaq Nasdaq with bonds at Nasdaq Stockholm need comply Issuers who want to list sustainable allocated, managed, and reported in a transparent manner through its second opinions. reported in a transparent manner through its second allocated, managed, and to develop green and other sustainability bond frameworks, and ensures bond proceeds are bond proceeds sustainability bond frameworks, and ensures to develop green and other of sustainable investment alternatives at Nasdaq Stockholm. Sustainalytics helps issuers issuers helps alternatives at Nasdaq Stockholm. Sustainalytics of sustainable investment Nasdaq Stockholm cooperated with Sustainalytics to develop the criteria for Nasdaq with Sustainalytics to develop the criteria Nasdaq Stockholm cooperated view List in order to provide investors with a comprehensive Stockholm Sustainable Bonds a total nominal value of over 5.4 bn SEK. New bonds will be added on a continued basis. over 5.4 bn SEK. New bonds will be added on a continued a total nominal value of Stockholm Sustainable Bonds. The list includes twelve bonds from the start, with with The list includes twelve bonds from the start, Stockholm Sustainable Bonds. On June 9, 2015, Nasdaq Stockholm launched a new list, Nasdaq On June 9, 2015, Nasdaq Nasdaq Stockholm Launches Stockholm SustainableNasdaq List Bonds Weather and Emissions Vasakronan AB VASA 475 GB SE0006800975 SEK 400 000 000 Rikshem AB RHEM 105 SE0005991510 SEK 100 000 000 Rikshem AB RHEM 112 SE0006510186 SEK 200 000 000 Rikshem AB RHEM 113 SE0006510681 SEK 250 000 000 Rikshem AB RHEM 115 SE0007073895 SEK 350 000 000 Rikshem AB RHEM 116 SE0007073903 SEK 350 000 000 See the original announcement.

CME Delists Certain US and European Monthly, Weekly, and Seasonal Strip Index Futures and Options Effective June 8, 2015, the Chicago Mercantile Exchange (CME) delisted certain CME US and European Monthly, Weekly, and Seasonal Strip Index Futures and Options contracts as set forth below. There was no open interest in these contracts. • CME Rulebook Chapter 403 CME Degree Days Index Futures • CME Rulebook Chapter 405 CME Seasonal Strip Degree Days Index Futures • CME Rulebook Chapter 406 CME European HDD Index Futures • CME Rulebook Chapter 407 CME European Seasonal Strip HDD Index Futures • CME Rulebook Chapter 408 CME European CAT Index Futures • CME Rulebook Chapter 409 CME European Seasonal CAT Strip Index Futures • CME Rulebook Chapter 424 CME Weekly Average Temperature Index Futures • CME Rulebook Chapter 424A Options on CME Weekly Average Temperature Index Futures The product rule chapters and terms and conditions contained in the Position Limit, Position Accountability, and Reportable Level Table located in the Interpretations and Special Notices Section of Chapter 5 (Trading Qualifications and Practices) of the CME Rulebook were removed from the Exchange Rulebook. The CME Rulebook chapters are provided in Exhibit 2 in blackline format. See the original announcement.

June 2015 38 Other

EIA Releases New Energy Visualization Widget As of June 15, 2015, the US Energy Information Administration (EIA) released a new widget that allows internet users to display interactive visualizations of current energy data from EIA on their own websites. The widget pulls user-selected data from EIA’s application programming interface (API) to create maps, line charts, pie charts, and bar graphs. The interactive visualizations are configured to always show the latest EIA data. See the original announcement.

ZEMA collects more than 350 records from the EIA, covering petroleum products, natural gas, coal, power, and finance. To learn more about ZEMA’s vast data library, visit www.ze.com/the-zema-solutions/data-coverage.

Reuters Begins Offering Free News Content to Online Publishers On June 9, 2015, Reuters announced that for the first time, it will offer a portion of Reuters multimedia news content for free to digital publishers through its publisher platform, Reuters Media Express. As the media industry navigates the unprecedented shift to digital publishing and online news consumption, Reuters is endeavoring to help publishers and expose more readers to its news content. This move marks the first time that Reuters has offered its content free-of-charge to publishers at this scale. Digital publishers can now download and use a limited set of free, ready-to-publish Reuters news items per month – including text, pictures, video and multimedia packages. This content covers world news, finance, business, sports, health, entertainment, politics, and more. The move will also allow users to search and view content without registration, requiring a log-in to download content from the Media Express site. See the original announcement.

Thomson Reuters Launches its Market Data Services in CME’s Aurora Data Center Effective June 4, 2015, Thomson Reuters announced that it is extending the services it provides within the Chicago Mercantile Exchange’s (CME’s) co-location facility located in Aurora, Illinois, to include managed real-time data feeds and its low-latency news service,

June 2015 39 providing customers with high-performance content while lowering the cost of ownership. Other The customers located in CME’s Aurora facility need access to cross-asset data and news to assist in making trading decisions. Thomson Reuters will now provide these services through Elektron Managed Services within the Aurora facility. Through this service, customers who have their trading applications in CME Group’s Aurora facility will be able to access Thomson Reuters Elektron Real Time consolidated market data feed and the low-latency News Feed Direct service via a simple cross-connect. See the original announcement.

ZEMA collects more than 4,000 regular data reports from over 400 sources. To learn how ZEMA users can utilize this data to create sophisticated analyses and forward curves, book a free ZEMA demo at www.ze.com/book-a-demo.

Thomson Reuters Expands Financial Markets Psychological Analysis Service As of June 1, 2015, Thomson Reuters has extended the analytics offered through its MarketPsych Indices to include individual companies, alongside the indexes for countries, currencies, commodities, and industries already available. First launched in 2012, Thomson Reuters developed its MarketPsych Indices in conjunction with MarketPsych LLC, a consultancy specializing in quantitative behavioral economics. The indexes provide real-time linguistic and psychological analysis of news and social media, converting qualitative indicators – such as fear, performance forecasts, and trust in management – into quantitative, actionable insight. The indexes announced on June 1 cover over 7,500 global companies. Drawing from a pool of 40,000 primary global news sources and 7,000 social media sites, and covering historical media from 1998 to the present, Thomson Reuters MarketPsych Indices deliver real-time streaming, multi-dimensional sentiment data on more than 7,500 companies, over 180 countries and currencies, as well as other asset classes. See the original announcement.

Nasdaq Expands Presence in Canadian Market with New Data Centers in Ontario Effective June 8, 2015, Nasdaq announced the expansion of its Directors Desk corporate governance offering, specializing in electronic board portal workflow and content delivery, into Canada via the establishment of two new data centers in Ontario. Similar to the existing data centers in the United States and Sweden, Nasdaq’s intent with this initiative is to more effectively service Canadian clients. The Canadian servers will be audited against SSAE 16 level II standards. See the original announcement.

ZEMA, ZE’s enterprise data management solution, contains advanced display functionalities which enable users to easily align news updates from organizations such as NASDAQ OMX and OTC Markets next to market data, giving users an enhanced market perspective. For more information, visit www.ze.com/the-zema-suite/dashboard.

June 2015 40 News from Data Vendors 41

high price at 4:00 p.m. representing values achieved during the eight hour market period. during the eight hour market high price at 4:00 p.m. representing values achieved following the publishing of the 1:30, 2:30, and 4:00 p.m. benchmarks, along with a low and p.m. benchmarks, along with following the publishing of the 1:30, 2:30, and 4:00 CST time-stamped benchmarks. Values are made available three times a day immediately available three times a day immediately CST time-stamped benchmarks. Values are made product price and differential values for the 8:00 a.m. (Open), 1:30, 2:30, 4:00 p.m. (Close) a.m. (Open), 1:30, 2:30, 4:00 p.m. product price and differential values for the 8:00 Selected Argus Spot Ticker Benchmark Data is available through ZEMA including refined through ZEMA including Selected Argus Spot Ticker Benchmark Data is available June 2015 the market close. regular intervals and specific moments in time, starting with the market open and ending with with the market open and regular intervals and specific moments in time, starting The Argus Spot Ticker displays prices that are an assessment of the transactable value at assessment of the transactable The Argus Spot Ticker displays prices that are an providing pricing transparency to US gasoline, diesel, heating oil, ethanol, and RINs markets. heating oil, ethanol, and RINs providing pricing transparency to US gasoline, diesel, To see the full list of ZEMA data providers, visit www.ze.com/the-zema-solutions/data-coverage. sector by the needs of the downstream fuels developed Argus Spot Ticker. This service targets greater data coverage in strategic areas of electricity, oil, natural gas, wind, and water. greater data coverage in strategic areas of electricity, recently addition of select data from the June 1, 2015 - Argus is pleased to announce the data collection within the last month, have been implemented in response to a need for to a need last month, have been implemented in response data collection within the ZE Adds Argus Service Ticker Benchmark Spot Data exports, imports, sales, and production. These reports, along with other expansions of ZE’s of production. These reports, along with other expansions exports, imports, sales, and oil exports by country; crude oil and NGL processing by refinery; and petroleum products products oil and NGL processing by refinery; and petroleum oil exports by country; crude volume, wind and solar energy forecasts, and more. Six SENER reports provide data on crude on data forecasts, and more. Six SENER reports provide volume, wind and solar energy cover electricity data on 15-minute auction market volume, balancing energy, intraday market intraday 15-minute auction market volume, balancing energy, cover electricity data on NEISO reports cover demand response settlement data. The nine Netztransparenz.de reports response settlement data. The nine Netztransparenz.de NEISO reports cover demand Foreign Exchange, NEISO, Netztransparenz.de, SENER, TransAlta, and UGS. The 14 added 14 added The Netztransparenz.de, SENER, TransAlta, and UGS. Foreign Exchange, NEISO, BM&FBOVESPA, Cargill, EOX Live, ASX Energy, ATCO Gas, Amerex, BM&FBOVESPA, Cargill, published by 3TIER, AESO, , ZE has added numerous data reports, including reports , ZE has added numerous Since the last issue of DataWatch clients’ specific needs. (free subscription) and private data reports, including reports that are collected based on based data reports, including reports that are collected (free subscription) and private agriculture, emissions, and finance. ZE then provides its clients with access to both public public to both finance. ZE then provides its clients with access agriculture, emissions, and and commodity data changes. ZE collects data spanning oil, natural gas, electricity, weather, natural gas, electricity, data spanning oil, data changes. ZE collects and commodity Assessments in June in energy to date on the latest has consistently kept up ZE PowerGroup Inc. (ZE) For 20 years, ZEMA Adds Electricity, Gas, Wind, Water, Oil, and Petrochemical and Oil, ZEMA Electricity, Adds Wind, Gas, Water, Through this service, you also have access to historical data. News from Data Vendors The Argus Spot Ticker is a companion service to Argus US Products, a daily service on refined products markets. The fuel grades displayed in Argus Spot Ticker are also assessed in Argus US Products; however, the services use different methodologies and therefore produce different prices. Additional information, including a published methodology, is available at www.ArgusSpotTicker.com. To learn more about this service, please contact your Argus Media representative at [email protected].

EEX and EPEX SPOT Approved as Pre-registered RRM Leipzig / Paris / Copenhagen, June 4, 2015. European Energy Exchange (EEX) and EPEX SPOT have been approved as pre-registered reporting mechanisms (RRMs) by the Agency for the Cooperation of Energy Regulators (ACER). The authorization as an RRM is a prerequisite for offering data reporting services in the context of the Regulation on Market Integrity and Transparency (REMIT). ACER published the list of RRMs on June 3, 2015. From October 7 onwards, all orders submitted to and transactions concluded on an Organized Market Place such as the exchanges of EEX Group will have to be reported to ACER. EEX, EPEX SPOT, Gaspoint Nordic and Powernext – all members of EEX Group – will support trading participants in fulfilling these obligations by providing data reporting services. With this step, EEX Group contributes to transparency of the energy wholesale market while keeping complexity low. Gaspoint Nordic and Powernext will use the RRM of EEX which facilitates reporting for market participants. About EEX The European Energy Exchange (EEX) is the leading energy exchange in Europe. It develops, operates and connects secure, liquid and transparent markets for energy and commodities products. At EEX, contracts on Power, Coal and Emission Allowances as well as Freight and Agricultural Products are traded or registered for clearing. Alongside EEX, EPEX SPOT (incl. APX-Belpex), Powernext, Cleartrade Exchange (CLTX) and Gaspoint Nordic are also part of EEX Group. Clearing and settlement of trading transactions are provided by the clearing house European Commodity Clearing (ECC). For more information: www.eex.com About EPEX SPOT The European Power Exchange EPEX SPOT SE operates the power spot markets for Germany, France, Austria and Switzerland. EPEX SPOT also provides market operation services for the

June 2015 42 Hungarian Power Exchange HUPX and coupling services for 4M Market Coupling on behalf of News from Data Vendors the Slovakian, Hungarian and Romanian Power Exchanges. Since 4 May 2015, EPEX SPOT has become 100% owner of APX Group including Belpex. APX operates the power spot markets for the Netherlands, the United Kingdom and Belgium. EPEX SPOT is a European company (Societas Europaea) based in Paris with branches in Leipzig, Vienna and Bern, as well as offices in Amsterdam, London and Brussels. 275 companies are active on EPEX SPOT and APX. 382 TWh were traded on EPEX SPOTs markets in 2014, and 92 TWh on APX. For more information: www.epexspot.com About Gaspoint Nordic Gaspoint Nordic offers an exchange based market place for physical trade of natural gas in Denmark. The products offered all have short maturity ranging from within day to month ahead. Gaspoint Nordic provides a market place to producers, retailers, energy companies, trading representatives and large consumers on which they can buy or sell natural gas anonymous and with no credit risk. Trading at Gaspoint Nordic is based on continuous trading and is performed electronically through an internet based trading system. This market model promotes further competition and transparency hence contributing to a dynamic gas market. Gaspoint Nordic supports market based balancing in cooperation with the Danish TSO, Energinet.dk by offering extended trading hours in case of a gas supply crisis. Since January 2015 Energinet.dk and the European Energy Exchange, EEX share joint ownership of Gaspoint Nordic. For more information: www.gaspointnordic.com About Powernext Powernext is a regulated market operating under AMF supervision. Powernext manages the natural gas activities of the EEX Group under the PEGAS brand throughout Europe, and operates the National Registry for electricity guarantees of origin in France. Powernext owns 40.3% in EPEX SPOT and 20% in EEX Power Derivatives. For more information: www.powernext.com

June 2015 43 News from Data Vendors

Power Exchanges Sign Contract with Deutsche Börse for Delivery of the European Cross-Border Intraday Solution June 9, 2015. The European Power Exchanges (PXs) APX, Belpex, EPEX SPOT, GME, Nord Pool Spot, and OMIE are pleased to announce that they have signed, with the support of 15 Transmission System Operators (TSOs), a contract with Deutsche Börse AG for the development of the European Cross-Border Intraday Solution (XBID Solution). This marks a key milestone for the project. Following the completion of the design phase, the development of the XBID solution will commence with immediate effect. It is due to be completed by spring 2016 and will be followed by a period of testing. Delivery of the solution into the market is expected in 2017. After the successful coupling of European day-ahead markets, the single EU-wide intraday coupling is a key component for completing the European Internal Energy Market. With the rising share of intermittent generation in the European generation mix, connecting intraday markets through cross-border trading is an increasingly important tool for market participants to keep their trading positions balanced. The PXs and TSOs are working closely together to respond to this need by delivering a transparent and efficient continuous cross-border intraday trading environment. In doing so, the XBID solution will create a single integrated European intraday market. This XBID solution will be based on a common IT system, to be developed by Deutsche Börse AG, linking the local trading systems operated by the PXs, as well as the available cross-border transmission capacities provided by the TSOs. Orders entered by market participants in one bidding zone can be matched, in continuous trading, with orders similarly submitted by market participants in any other bidding zones covered by the XBID solution, provided there is cross-border capacity available. Jean Verseille, Director European Affairs, RTE, and Co-Chair of the XBID Market Project Intraday Steering Committee, said: “This is a key milestone in a complex project and reflects the intensive efforts and collaboration of the PXs and TSOs. Deutsche Börse AG is a renowned provider of trading solutions and we are looking forward to the delivery of a high quality product.” Mikael Lundin, CEO of Nord Pool Spot, and Co-Chair of the project with Jean Verseille added: “Without doubt this is a very challenging project and reaching this milestone is a significant step. The assurance that the regulators have given us provides a foundation for moving forward.” “The creation of a single integrated intraday market for energy is a crucial step towards a more efficient, sustainable use of available capacities across Europe”, commented Hauke Stars, Executive Board Member of Deutsche Börse responsible for the Information Technology and

June 2015 44 Market Data + Services division. “Our stable and reliable technology is a solid foundation for News from Data Vendors the European Cross-Border Intraday Solution.” About APX & Belpex APX Group is one of Europe’s leading providers of power exchange and clearing services for the wholesale market, operating transparent platforms in the Netherlands, the United Kingdom and Belgium. APX Group provides exchange trading, central clearing & settlement and benchmark data and industry indices distribution services to over 180 members from more than 15 countries. Over 92 TWh was traded on APX markets in 2014 and €9 billion in energy trades cleared by APX. APX Group, including Belpex SA, is wholly owned by EPEX SPOT SE. About GME Gestore dei Mercati Energetici S.p.A. – GME is the company which organizes and manages the wholesale electricity market in Italy under principles of neutrality, transparency, objectivity and competition. Moreover, GME is directly committed to supporting the implementation of environmental protection policies, by organizing and managing Environmental Markets. Law no. 99 of 23 July 2009 also assigned GME, on an exclusive basis, with the organization and economic management of natural-gas markets, which consist of the Platform for the trading of natural gas (P-GAS), the Spot Gas Market (M-GAS) and the Gas Balancing Platform (PB-GAS), as well as of forward physical natural-gas markets. Finally, GME was also entrusted with the organization of a market of mineral-oil logistic services, the collection of storage capacity data and the organization of a wholesale market of liquid oil products for the transport sector. About Nord Pool Spot Nord Pool Spot operates Europe’s leading power markets, offering both day-ahead and intraday trading to its members. 380 companies from 20 countries trade on Nord Pool Spot’s markets in the Nordic and Baltic regions, Germany, and on our UK market N2EX. In 2014 the group had a total turnover of 501 TWh traded power. Our markets are operated from offices in Oslo, Stockholm, Helsinki, Copenhagen, Tallinn and London. Nord Pool Spot strives continually to strengthen its business by working with integrity, together with members and stakeholders, to achieve excellence. About OMIE OMI, polo español S.A. (OMIE) is a Spanish company created with the purpose of managing markets in underlying energy assets. As its main function, OMIE is responsible for the management of the Iberian spot electricity markets, running every day the day-Ahead Market and six intraday markets encompassing all Iberian energy. In 2014, over 830 agents from several countries executed through OMIE 13.9 million transactions representing an energy traded volume of 259 TWh, of which 35 TWh were traded in the intraday markets; this volume amounted to more than €10.9 billion. In addition to this principal function, OMIE is responsible for the management of several energy-related product auctions.

June 2015 45 The Transmission System Operators involved in the project are: 50Hertz, Amprion, Austrian News from Data Vendors Power Grid, BritNed Development Limited, Creos, Elia, Energinet.dk, Fingrid, National Grid Interconnectors, RTE, Statnett, Svenska kraftnät, Swissgrid, TenneT TSO B.V. (Netherlands), TenneT TSO GmbH (Germany) and TransnetBW About Deutsche Börse Group As a leading provider in global securities services, Deutsche Börse Group offers products and services to issuers, investors, intermediaries and market data providers. The group covers the entire process chain from trading, through clearing and settlement to securities custody. Deutsche Börse also offers market data, indices and analyses and is a service provider for the development and operation of IT systems. To find out more about the European Cross-Border Intraday Solution, visit the following websites: www.apxgroup.com www.belpex.be www.epexspot.com www.mercatoelettrico.org www.nordpoolspot.com www.omie.es

New Exchange Council Approves Organized Secondary Market for Capacity Guarantees in France Leipzig / Paris, June 11, 2015 – At its constituent meeting in Leipzig, the Members of the Exchange Council of EPEX SPOT elected Peter Heydecker as their Chairman. They also designated Dr. Michael Redanz from MVV Trading, Mr Andrea Siri from Edison Trading, and Dr. Bernhard Walter from EnBW Trading as Vice-Chairmen of the Exchange Council. The Council also appointed the following permanent guests: Mr. Thorsten Dietz from Tennet TSO GmbH, Mr. Manfred Pils from APG, Mr. Stefan Sewckow from Trianel GmbH, and Mr. Jan Horst Keppler from Université Paris-Dauphine as academic counsel. “We are facing challenging developments in the electricity trading sector such as the creation of the pan-European power market and the increasing importance of Intraday power trading”, says Peter Heydecker, who has already been Exchange Council Chairman during the last term. “I am very happy to further accompany these evolutions.” Moreover, the Exchange Council approved the launch of an organized market for trading of capacity guarantees in France. This market is based on the capacity mechanism introduced by the French Ministry of Ecology, Sustainable Development and Energy and the French

June 2015 46 electricity grid operator RTE. The capacity mechanism was set up in order to ensure security News from Data Vendors of supply in France, which might be challenged by a combination of fast increasing peakload and low profitability for capacity owners. The development of an organized secondary market for capacity guarantees will help suppliers to fulfil their obligations and capacity owners to value their capacities. It also provides a transparent and reliable price reference for capacity guarantees. The market will be organized through several auctions per year, with trading of standardized guarantees for future winter periods. The capacity market is scheduled to be launched end of 2015. “An organized market with a reliable price reference is crucial for a decentralized capacity mechanism”, says Jean-François Conil-Lacoste, Chairman of the Management Board of EPEX SPOT. “Its design takes into account the particular needs of the French power system while ever looking for strengthening the European energy-only market. We are looking forward to organizing this new segment.” The second Exchange Council meeting in 2015 was held on June 10 and was chaired by Peter Heydecker, Head of European Power at Vitol. The Exchange Council of EPEX SPOT is an official body of the Exchange. 22 members and 4 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 short-term electricity markets for Germany, France, Austria and Switzerland. EPEX SPOT owns 100% of APX Group (including Belpex), operator of the short-term electricity markets for the Netherlands, the United Kingdom and Belgium. Striving for the creation of a European single market for electricity, EPEX SPOT shares its expertise with partners across the continent and beyond. EPEX SPOT is a European company (Societas Europaea) in corporate structure and staff, based in Paris with offices in Amsterdam, Bern, Brussels, Leipzig, London and Vienna. 275 companies trade over 450 TWh of electricity on EPEX SPOT and APX every year – one third of its countries’ electricity consumption. EPEX SPOT is held by EEX Group, part of Deutsche Börse, and European electricity transmission system operators. For more information: www.epexspot.com

June 2015 47 News from Data Vendors

SEEPEX Targets Launch of Serbian Day-Ahead Market by End of November 2015 Belgrade / Paris, June, 24 2015. The project partners of the South Eastern European Power Exchange (SEEPEX) target the launch of the Serbian day-ahead market by end of November 2015, subject to successful member testing and regulatory approval. This was announced during a workshop with future members held on June, 24 2015, where Serbian, regional and European electricity market participants underlined their interest in joining an organized market in Serbia. SEEPEX will be a major step in the creation of a regional power trading solution for South Eastern Europe (SEE) and is highly anticipated by the electricity market community. SEEPEX is a joint venture between Elektromreža Srbije (EMS), the Serbian transmission system operator, and the European Power Exchange EPEX SPOT. The operations of SEEPEX will rely on the trading system ETS, used by EPEX SPOT for operating its own markets. Clearing and settlement shall be performed by the clearing house European Commodity Clearing (ECC). SEEPEX members will thus benefit from high-level standards both in terms of trading and clearing services. This also allows for an efficient and fast adherence to existing market coupling initiatives such as the 4M Market Coupling or the Multi-Regional Coupling, stretching already across countries covering 85% of European electricity consumption. SEEPEX will foster the development of a competitive, transparent and reliable electricity market for Serbia and South Eastern Europe, boosting electricity trading in the entire region. “SEEPEX will be the cornerstone for power trading in the Balkans”, says Nikola Petrović, EMS General Manager. “Its mixture of local roots and European DNA is essential for success.” “The geographic positioning of Serbia in the region is ideal for launching an organized power market providing a reliable price signal”, adds Jean-François Conil-Lacoste, Chairman of the Management Board of EPEX SPOT. “SEEPEX is able to serve as an example for other markets in the SEE region.” Market rules and the membership package will be disclosed during July. Member tests will start in September 2015. Future members will receive regular updates on the project’s progress. The Elektromreža Srbije (EMS) is a public company fully owned by the Republic of Serbia, established under Serbian law in 2005. EMS as the Serbian Transmission System Operator is entitled by the Serbian Energy Law to operate and develop the Serbian transmission network, as well as to establish the Market Operator in charge of the Serbian organized power market. As a full member of the European Network of Transmission System Operators for Electricity (ENTSO-E), EMS is fully committed to the facilitation of the Serbian national power market, as well as its future integration within the regional and internal pan-European power market. For more information: www.ems.rs

June 2015 48 The European Power Exchange EPEX SPOT SE operates the short-term electricity markets for News from Data Vendors Germany, France, Austria and Switzerland. EPEX SPOT owns 100% of APX Group (including Belpex), operator of the short-term electricity markets for the Netherlands, the United Kingdom and Belgium. Striving for the creation of a European single market for electricity, EPEX SPOT shares its expertise with partners across the continent and beyond. EPEX SPOT is a European company (Societas Europaea) in corporate structure and staff, based in Paris with offices in Amsterdam, Bern, Brussels, Leipzig, London and Vienna. 275 companies trade over 450 TWh of electricity on EPEX SPOT and APX every year – one third of its countries’ electricity consumption. EPEX SPOT is held by EEX Group, part of Deutsche Börse, and European electricity transmission system operators. For more information: www.epexspot.com

Carbon Market Data Launches the India Greenhouse Gas Reporting Company Database June 3, 2015 - Carbon Market Data is happy to announce the launch of the India Greenhouse Gas Reporting Company Database. The India GHG Reporting Company Database provides CO2 emissions data as well as power capacity and generation information on around 450 Indian power plants. Database contents: • Power plant name • Sector (State, • Net Power Generation • Company name Private, etc...) (GWh) from 2008 • Power capacity (MW) • Type • CO2 emissions from 2008 • Region • Fuel 1 • Emissions factor • State • Fuel 2 (tCO2/MWh) from 2008

To download a sample of this new report click here.

June 2015 49 Monthly Market Analysis 50

June 2015 Crude Brent Oil vs. WTI: Contract Prompt-Month (NYMEX) 4 USD/Bbl this month, which was 2 USD/Bbl below the last 12-month average of 6 USD/Bbl. the last 12-month average of 4 USD/Bbl this month, which was 2 USD/Bbl below The Brent-WTI spread (represented by the purple area in the graph above) averaged area in the graph above) averaged The Brent-WTI spread (represented by the purple WTI and Brent are 72 USD/Bbl and 78 USD/Bbl, respectively. WTI and Brent are 72 USD/Bbl and 78 USD/Bbl, effects of geopolitical flare-ups in the Middle East. (Reuters) The past 12-month averages for averages in the Middle East. (Reuters) The past 12-month effects of geopolitical flare-ups down 3% from May, as rising OPEC supplies are reducing Brent prices, counteracting the OPEC supplies are reducing Brent prices, counteracting down 3% from May, as rising Brent, on the other hand, traded 3% lower this month with prices settling at 64 USD/Bbl, at 64 USD/Bbl, traded 3% lower this month with prices settling Brent, on the other hand, continued to accumulate in Europe and West Africa. continued to accumulate previous month to 60 USD/Bbl as US stocks fell for the eighth straight week and a supply glut a supply and as US stocks fell for the eighth straight week previous month to 60 USD/Bbl sliding down. The prompt-month contract for Texas light sweet increased by 1.6% from the from by 1.6% contract for Texas light sweet increased sliding down. The prompt-month and WTI moved in separate directions during June 2015, with WTI moving up while Brent Brent up while directions during June 2015, with WTI moving and WTI moved in separate According to data from NYMEX, crude oil prices for NYMEX prompt-month contracts for Brent for contracts crude oil prices for NYMEX prompt-month According to data from NYMEX, Crude Oil Brent vs. WTI: Forward Curve (NYMEX) Monthly Market Analysis

On NYMEX, futures contracts for crude oil benchmarks continued to decline in June 2015. This month, the NYMEX Brent forward curve for delivery by the end of June 2017 (represented by the blue line in the graph above) slightly decreased by 12 USD/Bbl to settle at 54 USD/Bbl compared to the results of trades in May. Texas Light Sweet in June (the red line in the graph above) averaged at 51 USD/Bbl, a drop of 9 USD/Bbl for the same delivery period. For the third month in a row, the Brent-WTI spread, on the other hand, averaged at 3 USD/Bbl (the purple area) for the next 24 months. Oil futures took a hit this month, resulting in a loss. The further increase in Saudi crude output, concerns about energy demand on the heels of Greece’s ongoing debt crisis, and monitored negotiations over Iran’s nuclear program are all contributing factors in the price decline.

June 2015 51 North American Natural Gas Spot Prices (NYMEX) Monthly Market Analysis

On the New York Mercantile Exchange (NYMEX), prices at Henry Hub, Transco Zone 6, and Chicago remained relatively constant at just below 3 USD/MMBtu throughout the first three weeks of June 2015. PG&E, on the other hand, floated above the 3 USD/MMBtu mark with prices ranging from 3.14 USD/MMBtu on June 1, 2015, to 3.36 USD/MMBtu on June 10, and settling at 3.20 USD/MMBtu on June 22. Prices at Transco Zone 6 followed a similar trend, beginning the month at 2.17 USD/MMBtu before dropping to 1.90 USD/MMBtu on June 5, and increasing to 2.39 USD/MMBtu on June 10, before settling at 2.15 USD/MMBtu over the course the last four days of June 2015 as temperatures increased. When compared to the first 22 days of May 2015, the average prices fell. Prices decreased from 2.88 USD/MMBtu in New York’s Transco Zone 6 to 2.76 USD/MMBtu, from 2.81 USD/MMBtu in Chicago to 2.66 USD/MMBtu, from 2.88 USD/MMBtu in Henry Hub to 2.76 USD/MMBtu, and from 3.37USD/MMBtu in California’s PG&E Citygate to 3.23 USD/MMBtu. Comparing June 2015 prices to the same period last year, monthly average gas prices decreased in New York’s Z6, Chicago Citygates, Henry Hub, and PG&E by 41%, 41%, 40%, and 37%, respectively.

June 2015 52 Henry Hub Natural Gas Forward Curve (NYMEX) Monthly Market Analysis

On NYMEX, natural gas futures available for trade in the next 12 months at Henry Hub slightly increased in June 2015; the whole curve has moved up. Although natural gas futures on NYMEX increased by 2% in June 2015 when compared to the previous month, the spread between current and previous month contracts (represented above by the red bar) was almost negligible. Natural gas for July delivery rose by 2% to settle at 3.02 USD/MMbtu on NYMEX as the outlook for cooling demand in July approaches. For the next 12 months, Henry Hub natural gas futures in June 2016 had an average price of 3.22 USD/MMbtu.

June 2015 53 Actual Weather (AccuWeather) Monthly Market Analysis

1. Monthly Temperature (AccuWeather) From May 2015 to the third week of June 2015, the temperature increased in all observed North American cities as we move into the middle of summer. The monthly average temperature rose in Chicago by 5 degrees to 20 Celsius (C), in San Antonio by 4 degrees to 29C, in New York City by 1 degree to 22C, and in San Diego by 1 degree to 19C. In June 2015, the two-year average in all observed cities was slightly varied. When comparing the past two-year average of June temperatures to June 2015 temperatures, this year’s June was warmer in Chicago and San Antonio by 1C. New York felt 1C cooler this June compared to the past two-year average. In June 2015, the city of Chicago experienced the largest fluctuations among all observed cities, as the city reached 26C on June 10. The city felt cooler as temperatures dropped to 17C on June 17, settling at 27C for the last day of observation. This year’s June did not end up deviating from the normal seasonal pattern for this time of year, based on the two-year average and a comparison with the previous month.

2. Daily Temperature (AccuWeather)

June 2015 54 Electricity: Day-Ahead Prices (ICE) Monthly Market Analysis

On the ICE, June 2015 day-ahead peak electricity prices in CAISO, represented by SP15, and ERCOT, represented by North 345kV, began to increase as of June 4, 2015. CAISO SP15 prices rose from 32 USD/MWh on June 4 to 42 USD/MWh on June 16, before settling at 45 USD/MWh on June 22. Prices at PJM and NYISO both followed a similar downward trend this month. Prices at PJM APS Zone and NYISO Zone A began the month at 44 and 41 USD/MWh respectively, before dropping to 40 and 36 USD/MWh on June 16, ending the observation period at 39 and 34 USD/MWh, respectively. ERCOT prices remained relatively flat throughout the first three weeks of the June, averaging at 28 USD/MWh.

June 2015 55 Gold and Silver Daily Prices (CME) Monthly Market Analysis

On CME, gold prices fell during the last week of May 2015 and throughout the month of June. Gold prices began the month of June at 1,194 USD/Toz before falling by 27 USD/Toz, then bottoming out at 1,167 USD/Toz on June 5. Although gold prices have been hovering between 1,167 USD/Toz and 1,227 USD/Toz per ounce for several months, it could be set to climb as investors look to mitigate risks as Greece edges towards default. Silver peaked at 16.78 USD/Toz on June 2 before dropping 6% to settle at 15.81 USD/Toz on June 12. Silver traded 0.11 USD/Toz below its seven-day moving average of 16.026 USD/Toz.

June 2015 56 Wheat Futures Forward Curve (CME) Monthly Market Analysis

On CME, wheat futures available for trade in the next 12 months jumped in June 2015. The price of wheat increased by 14% for trade in July 2015 when compared to the previous month due to wet weather that has been delaying the harvest in key US growing areas. Wheat for September, the best-traded contract, touched 5.84 USD/bushel, up 0.79 USD/bushel from last month. The headway came amid expectations of further rains for the US Midwest – where soft red winter wheat, as traded in Chicago, is grown – bringing the prospect of further harvest delays. (Reuters)

June 2015 57 In Depth DepthIn 58

By Jay Jameson Jay By Inc. ZE PowerGroup [email protected]

in Power: Part 2 and Powerpack How Powerwall batteries will amplify the need for management data Tesla theand Shift century. On the other side of the spectrum, there is no shortage of critics who century. On the other side of the spectrum, there st power storage might have on the energy landscape of tomorrow. power storage might have on the energy landscape now, the best we can do is play the odds and speculate on the likely implications distributed on the likely implications now, the best we can do is play the odds and speculate the truth probably lies somewhere in the middle, and only time will resolve these disputes. For and only time will resolve these the truth probably lies somewhere in the middle, discount Powerwall as an impractical and uneconomical novelty destined for failure. As usual, novelty destined for failure. discount Powerwall as an impractical and uneconomical June 2015 of the 21 herald this technology as the solution to global warming and one of the biggest breakthroughs and one of the biggest breakthroughs herald this technology as the solution to global warming become Musk’s most revolutionary endeavor in the long run. Certainly, there are many who long run. Certainly, there are become Musk’s most revolutionary endeavor in the SpaceX, has made headline news recently. Nonetheless, Powerwall has the potential to isn’t exactly the most sensational technology for which Elon Musk, CEO of Tesla Motors and which Elon Musk, CEO of Tesla Motors isn’t exactly the most sensational technology for Alongside hyperloops, rockets, and luxury electric vehicles, the Tesla Powerwall battery vehicles, the Tesla Powerwall battery Alongside hyperloops, rockets, and luxury electric In last month’s article I looked at some of the financial considerations regarding the consumer In Depth side of this new technology; now I shift my focus to what could happen on the other side of the meter – what could become of utility companies if independent power storage solutions are popularized. In all likelihood, this would disrupt how power companies do business, though perhaps not in the ways one might expect. The crisis faced by utilities in this scenario is not merely less demand, but less predictable demand, which could be equally as great a challenge to sustaining profitability. In the decades ahead, it seems unlikely that the world will transition totally and seamlessly to solar energy, despite what Elon Musk might contend. Instead, we will likely move into an increasingly decentralized model where conventional utility companies need to respond to shifting markets, embrace smart grid technologies, and increase their data management capacities. But before we examine some of the potential challenges, let us revisit two of the frequently overlooked technical features of the Powerwall battery and the source of its disruptive potential.

Technical Possibilities of Powerwall The functional possibilities of Tesla batteries go well beyond being an accessory to solar panels. For residential users, Powerwall batteries not only store and discharge renewable energy and serve as power backups during outages, but they can also help reduce energy bills by charging during off-peak hours and providing power to homes during peak hours. Of course, there is a great deal of skepticism about how financially beneficial this might actually be, especially considering the approximate 5,000 USD cost of purchasing and installing a single 10 kW/h Powerwall unit. But the fact remains that Powerwall is a “smart” technology managed by external software that can give individual homes and businesses the ability to smooth out power rates on their own behalf. This feature alone has the potential to upset the predictive models of utility companies in a significant way.

In all likelihood, this would disrupt how power companies do business, though perhaps not in the ways one might expect.

As well, while the bulk of Tesla’s marketing efforts seem to be directed toward residential customers, perhaps the greatest potential for these batteries resides in their scalability for commercial and industrial applications. Individual Powerwall units can be combined into “Powerpacks,” which provide 100 kW/h of storage each. Because Powerpacks can scale infinitely, they are capable of providing megawatt- and even gigawatt-class energy storage. Businesses and industries could use Powerpacks for load shifting or even to participate in

June 2015 59 grid markets as a revenue stream. For large-scale enterprises that closely monitor their energy In Depth consumption and constantly seek out ways to improve operating efficiencies, Powerpack’s ability to smooth out load and energy costs over the course a day or even seasonally may become very appealing, especially when coupled with intermittent renewable generation technologies like solar and wind. One nascent example of Tesla’s commercial and industrial application is EnerNOC’s recent announcement that it will be deploying Tesla batteries at select customer sites throughout California. EnerNOC, a large provider of energy software and demand response for businesses, industries, and utilities, will be deploying Tesla’s 100 kW/h Powerpacks to a yet undisclosed number of sites. While EnerNOC CEO Tim Healy stated that the company isn’t expecting a sizable savings from the Tesla implementation this year, he did say that “this could be a sizable channel to market” in the coming years.1 Indeed, independent storage could soon become a sweeping trend in the emerging energy landscape for residential, commercial, and industrial uses. How this will affect the energy industry itself is something that warrants serious consideration.

The functional possibilities of Tesla batteries go well beyond being an accessory to solar panels.

A Strange New World for the Energy Industry Widespread popularization of independent storage could result in major disruption to the status quo of the energy industry. The next 5-10 years could see a chaotic scramble to figure out a new paradigm in how energy companies make money and distribute power. In the event of widespread, decentralized energy production and storage, two trends could emerge: less demand and less predictable demand. Beginning with the former, a large-scale adoption of independent batteries (especially if coupled with renewable technologies) could result in a significant decrease in demand. If demand declines sharply, the grid would be underutilized but require the same amount of capital to maintain it. Energy utilities have a mandate to maintain the grid and to store adequate operating reserves at all times, regardless of how heavily they are utilized. But these expenses become difficult to support if revenues diminish in the shift toward greater decentralization. As well, less demand could lead to a surplus in power on the grid – power that may have to be discharged arbitrarily in order to stabilize the grid. Less demand is a reality that areas of the energy industry have already begun to grapple with. The ZEMA graph below shows weather adjusted load for CAISO from May 2009 to May 2015.

June 2015 60 Here, we can see a red downward trending line showing how weather has impacted In Depth load from a solar standpoint. Over this timespan, the graph shows that total system load has decreased by roughly 12% after taking weather into account. The incremental decrease of load due to off-grid solar generation is also highlighted in green. One could interpret the decline in total system load as off-grid solar generation working to recoup a portion of that load. The influx of affordable storage technologies could act as a tipping point that accelerates this trend even more.

Figure 1 – CAISO solar impact trend analysis The second trend in this scenario, the unpredictability of demand, presents an even greater complication for utility companies. If independent storage catches on, every site with its own battery could be an unknown, unpredictable variable for the utility company that manages it. Presently, utility companies carefully manage the current load and projected demand of their markets. As independent batteries begin trickling into households and businesses, utility companies will have a much harder time budgeting power and ensuring adequate demand response. The conversion of households and businesses into two-way energy consumers/ producers with their own storage capacities could undermine utility companies’ data and disrupt their forecasting models. A prevalence of independent batteries would produce a huge amount of important data that could be out of reach for utility companies. This data would be collected by private tech companies (like Tesla or EnerNOC); but, unless utilities broker a deal with these companies, they may be left in the dark, missing out on vital data concerning their clients’ energy needs and habits. This could present serious challenges to effectively managing power supply. As if that weren’t enough, utilities could be forced to expand their existing infrastructure in the midst of this potential chaos. Even if their demand is diminished, residences and businesses with batteries and/or renewables still need to be tied into the grid. To effectively service these sites, utility companies would need to bypass traditional distribution infrastructure and connect directly to individual residences and businesses. This essentially means developing microgrid systems in which individual houses have bi-directional inverters and smart meters. At present, it is unclear where the capital would come from in order to expand this infrastructure. In other words, there is no regulatory basis in place to say if utilities, home

June 2015 61 owners, or battery/renewables companies would end up absorbing these costs. Ultimately, In Depth this expanded infrastructure would lead to more data being generated within the grid, much of it potentially out of reach of the utility companies. Selling the Solution? Intelligently, Tesla seems to be selling a solution for the crisis it is helping create, as it has designed the Powerpack product to serve utilities. Because Tesla batteries can scale infinitely, they are being marketed to utility companies to assist with load shifting, system firming, and maintaining operating reserves. This ostensibly means that the unpredictable imbalances caused by renewables could be offset by adding stored energy to the system during times of unexpectedly high demand and storing surplus energy when demand is unexpectedly low. In a best-case scenario, this is a win-win solution – Tesla gets to sell large-scale battery systems to utilities, and utilities can take advantage of the same technology that is helping residences and businesses save money and manage loads. However, it is too soon to say if Tesla’s large-scale battery systems are an economical and satisfactory solution to utilities’ looming complications.

Figure 2 - Artist’s rendering of a utility-scale Tesla Powerpack system composed of multiple 100 kW/h battery blocks (Source: Tesla Motors) Consumers Backlash Again, it is too early to say with any certainty what effect the introduction of independent batteries will have on power markets in general. However, it is possible that independent storage could end up inflating costs for power consumers who do not have a home battery. Due to the aforementioned infrastructure upgrades potentially needed to the grid, coupled with the possibility of less revenue, utility companies might need to increase rates to remain viable

June 2015 62 and maintain service. While this would mean higher rates all-around, it would hit hardest for In Depth people without independent storage and/or renewable generation. The increasing power rates would become a major boon for renewable manufacturers, more quickly closing the gap of grid parity. The more expensive conventional electricity would become, the more attractive independent storage would look to consumers. If the scales tip, and if off-grid solutions become the most economical choice for consumers, it could result in a huge influx of independent storage and renewable technologies into the grid. If demand plummets, this could cause major upheaval for not only utility companies but for generation plants as well. As batteries and renewable technologies approach or even surpass grid parity, their owners and manufacturers might come under pressure from utilities and lawmakers. This could even mean the eventual discontinuation of tax incentives for such products.

The more expensive conventional electricity would become, the more attractive independent storage would look to consumers.

Conclusion: Data as the Key to Surviving the Lithium-Ion Revolution If we reexamine Musk’s perhaps hyperbolic claim during his product launch that Powerwall represents a “fundamental transformation of how the world works, how energy is delivered across the earth,” we see that there might end up being some truth in it. With the price of lithium-ion batteries falling dramatically every year, it is conceivable that their widespread dissemination within residential and commercial energy supplies could soon become a reality. With battery technologies like Tesla’s being added to the energy mix in the near future, utility companies may need to become very flexible very quickly. This flexibility could take on many forms. For one, utility companies may need to collaborate with battery manufacturers and/or energy software companies so that utilities can access battery data. Knowing who has a battery, when it is likely to be used, and how much power it is storing/drawing/supplying is all vital information that would help utility companies maintain the stability of the entire grid. Thus, utilities will need to take advantage of emerging technologies and data management systems to better forecast energy demand for a grid that is increasingly unpredictable. Furthermore, utility companies may need to consider vertically integrating with battery and renewable technology suppliers. In the years to come, there could be a great deal of money to be made in retailing and installing these technologies. Alternatively, this this could also become a contested site between tech and utility companies. Regardless, there will continue

June 2015 63 to be the potential for profit as long as utility companies remain adaptable, take advantage of In Depth new technologies and business practices, and not fall behind in the race for reliable data. Ultimately, the trend of distributed power supply is likely to accelerate with the introduction of independent power storage technologies. Regardless of the success or failure of Tesla, data will be increasingly vital to maintaining successful business operations in the emerging energy landscape. All indicators suggest that the amount of data is going to explode in the years and decades ahead, making data both a critical challenge and crucial resource for economic success. For utility companies especially, predicting what is now unpredictable will become the key to survival. 6 Works Cited 1 Qtd. by Jeff St. John. “How EnerNOC Is Building Tesla’s Batteries Into Its Demand Response Plans.” Greentech Media. May 11, 2015. Accessed June 25, 2015. http://www.greentechmedia.com/ articles/read/how-enernoc-is-building-teslas-batteries-into-its-demand-response-plans.

About ZE PowerGroup Inc.: ZE is an experienced software and strategic consulting firm that combines energy industry expertise with advanced software development capabilities. ZE is the developer of ZEMA, a sophisticated enterprise data management and analysis solution built to meet the challenges of participants in energy and commodities markets. About ZEMA: ZEMA is an enterprise data management software designed for collecting data and performing complex analysis. ZEMA replaces fragmented data management processes with a sophisticated, unified, and automated system. Each ZEMA component is modular and scalable, giving clients greater flexibility when integrating it into their organizations. The solution is easy to use and backed by ZE’s support team around the clock. It has been ranked first in the Energy Risk Awards “Data Management House of the Year” category for five years in a row. In Energy Risk’s annual software survey and rankings, it is also consistently rated by end users as first in the “Preferred System,” “Ease of System Integration,” and “Customer Service” categories. Disclaimer: ZE DataWatch is a report comprised of data updates and expectations for energy and commodities markets, powered by ZEMA. The news contained in ZE DataWatch is for information purposes only. Although ZE PowerGroup believes the information in this report to be correct, the organization does not warrant the accuracy or completeness of it. Information in this report is not intended to provide financial, legal, accounting, or tax advice and should not be relied upon in that regard. ZE PowerGroup is not responsible in any manner whatsoever for direct, indirect, special, or consequential damages, howsoever caused, arising out of the use of this report.

June 2015 64