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FEBRUARY 2015

Part Two of Two The Seven Ages of Oil: Boom and Bust, War and Peace, Growth and Decline

By Aiman El-Ramly, C.S.O. 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 7 8 8 9 9 10 10 11 11 11 12 13 14 14 14 15 16 16 17 17 18 19 20 20 20 21 21 22 22 22 23 24 24 24 24 25 26 26

February 2015 ICE Futures US Lists PJM, MISO, and SPP Power Futures Contracts Lists PJM, MISO, and SPP ICE Futures US 7 Power Nordic Power Futures EEX Launches and New SFTP Server Online Shop for Market Data EEX Launches Market Coupling Launches Italian Borders American Power CSV Files Descriptive Fields in North Platts to Remove Power Assessments Platts to Discontinue UK High/Low Sign MOU on REMIT Implementation APX and Dutch Energy Regulator Assessments Platts to Launch CFR India Petcoke Mid-Sulfur Petcoke Assessment Platts to Launch Weekly Turkey M3 Waterborne Gasoline Assessments Platts Introduces Naptha against Line Space Assessments Platts Launches Colonial Pipeline Gasoil Bunker Assessments Argus Introduces New European Value for German Diesel Barge Argus Adds New Weekly Snapshot Assessments Argus Launches New Petcoke and Gasoline Assessments Argus Adds New Ukrainian Diesel Argus Introduces New Paraxylene Assessments Argus Adds New Gasoil Bunker Codes Futures CME to List European and South Korean Trade Month Benzene CME to Launch Crude Oil and Refined Futures ICE Launches New European Oil Futures Sulfur 1% Bunker Assessments Platts to Discontinue European and Mediterranean Low MOC Platts to End No. 2 New York Harbor Cargos at London Platts Stops Weekly DOP Assessment Platts Discontinues US Ketones Assessments Oil Bunker Assessments Argus Stops Publishing European and Mediterranean Fuel Argus Discontinues US Diesel and Fuel Oil Assessments CME Delists Two Oil CFD Futures Contracts Platts to Extend Low Sulfur Gasoil Futures Curve Parameters Platts Edits European Polymer Contract Price Assessment Platts’ Data Source Changes Floor Trading Volumes Natural Gas Platts Adds Cross-Fuels Data to European Gas Daily Argus Adds European Natural Gas Assessments Gas Codes Argus Adds New North American and European Natural CME Europe Launches Italian Natural Gas Futures ICE Futures US Lists Six New Natural Gas Futures Licensor of PEGAS Deutsche Börse Market Data + Services Becomes Exclusive 11 Petroleum FOB Jet Barge Swaps Platts to Launch Rotterdam Operator Player – the Microgrid Markets’ New Power The Emerging 5 Editorial Contents Summary 3 26 27 27 28 28 29 29 30 30 30 31 31 31 32 33 33 34 34 35 36 36 37 38 38 39 39 40 40 41 41 43 43 43 44 44 45 45 46 46 February 2015 Futures Gas NBP Natural and TTF Europe CME Trades Spectron Marex Platts to Publish CME Group Open Interest for Coal CME Group Open Interest Platts to Publish Sugar Futures Assessments Platts to Launch Expanded Platts to Publish Iron Ore Phosphorus Differential Platts to Launch New USD-INR Forex Assessment Platts to Discontinue Descriptive Fields in North American Natural Gas CSV Files Gas CSV American Natural in North Descriptive Fields Discontinue Platts to Assessments Propane Swap Discontinue Argus to Gas Assessments York Natural New Argus Discontinues Volumes Hub Floor Trading Henry Data Source Changes Platts’ 29 Coal Assessment Series to Launch CMCI Met Coal Platts and Fenwei Coal Averages Front-Month, Front-Quarter Platts Publishes Assessment New York BTU Value Coal Argus Discontinues Coal Spread Platts to Discontinue Compliance Softs and Metals 31 SOFTS Ethanol Assessments Platts to Decouple Two T2 German Crop Soybean Meal and Soybean Oil Options CME Launches Short-Dated Settled Futures CME Europe Lists Fertilizer Cash Options Launched on CME Globex New MGEX Calendar Spread Sugar Broking Marex Spectron Launches Physical Contracts Palm Olein, Fiberboard, Blockboard, and Corn Starch DCE Lists New Soybean, Corn, Contract to Johannesburg Stock Exchange Euronext Extends Milling Wheat 36 METALS Argus Launches Gadolinium Oxide Assessment NYMEX Lists Gold Kilo Futures for Hong Kong Deliveries ICE to Administer the LBMA Gold Price Platts Discontinues Platts Tubular Market Data File CME Changes FIX Tags for Metals Futures LME Extends Publication of Live Forward Price Curves 40 Finance Futures CME Introduces Ratio Calendar Spread for Treasury Bond Rate Swap Futures CME Globex Lists Second Generation Deliverable Interest Swap Futures CME Europe Lists Euro and US Dollar Denominated Deliverable ICE Introduces Additional Euribor and Short Sterling Options Stock Futures Contracts ICE Introduces Flexible Individual Equity Option and Single DGCX Adds New Spread Contracts in Indian Rupee Futures Ossiam Launches New Smart Beta ETF on Xetra UBS AG Lists New ETF on Xetra Index ICAP Launches the ICAP Bond Correlated Call US Treasury Corporate Bond Market ICAP e-Commerce Launches Scrapbook Service for the TAIFEX Launches Two New EFT Futures Source Launches Two New Equity Index ETFs on Xetra Summary 4 47 47 48 48 49 49 49 50 50 51 52 52 53 53 54 54 55 55 56 57 59 60 61 62 63 64 65 65 66 67 68 69 70 71 71 71 73 75 78 80 February 2015 Berhad Derivatives Malaysia for Bursa of Registration Order Issues CFTC Data Portal Historical Market Chi-X Canada Launches TickSmith Xetra ETFs on New Bond Index Launches Two Amundi Merger Agreement Terminate and GFI Group CME Group Rupee Futures in Indian Spread Contracts Existing DGCX Suspends Market to Provide Data to the Chinese with Wind Information Co. ICAP Partners of Trade by CFTC Registration as Foreign Board TOCOM Granted Asia to Launch Eurex Clearing Eurex Authorized Futures and Options Product Titles of Six CME FX CME Amends for ISDAFIX New Calculation Methodology IBA Introduces Weather and Emissions Allowance, Solar, and Compliance Futures ICE Futures US Lists Air Pollution Technology Developer Alternext Lists Oceasoft Sensor Interstate Rule Allowance Assessments Platts Discontinues Clean Air Codes in Argus Air Daily Argus Discontinues US NOx AccuWeather Acquires WeatherBank News from Data Vendors Gas, Metals, and Weather Data Sources in February ZEMA Adds Oil, Power, Natural Platform ZE Launches ZEMA User Community with TIBCO Spotfire ZE Enhances Corporate Footprint Offer with NBP, ZEE, and PSV Contracts PEGAS to Enhance Geographical on 31 March New Common Market Area “TRS” in Southern France PEGAS Introduces Trading for 24, 2015 Italian Borders Market Coupling to Launch on February Ten Considerations for the European Internal Energy Market Platts Forward Curves – OTC Global Holdings Launches EOXLive Markets Monthly Market Analysis Crude Oil Brent vs. WTI: Prompt-Month Contract (NYMEX) Crude Oil Brent vs. WTI: Forward Curve (NYMEX) North American Natural Gas Spot Prices (NYMEX) Henry Hub Natural Gas Forward Curve (NYMEX) Actual Weather (Accuweather) Electricity: Day-Ahead Prices (ICE) In Depth and Peace, Growth and Decline Part 2 of 2: The Seven Ages of Oil: Boom and Bust, War The Seven Ages Continued 1973-1994: The Middle East Shrugs its Shackles and Detonation 1994–2008: Deregulation, Speculation, Manipulation, 2008-2015: All Fracked Up An Implausible Future Editorial 5

By Olga Gorstenko, Olga By Editor-In-Chief Datawatch [email protected] the Microgrid Operator The Emerging Power Markets’ New Player – ThePlayer New Markets’ EmergingPower February 2015 East Coast, heavily impacted by weather almost every winter, has been looking for solutions every winter, has been looking for East Coast, heavily impacted by weather almost considered by local authorities to ensure regional sustainability and/or reliability. Thus the sustainability and/or reliability. considered by local authorities to ensure regional concept is expanding from the level of buildings to municipalities; microgrids are being to municipalities; microgrids are concept is expanding from the level of buildings not only hospitals, but also jails, university campuses, and data centers. The microgrid and data centers. The microgrid not only hospitals, but also jails, university campuses, Nowadays, independently-run, self-sufficient, and self-reliant grids support the operations of self-reliant grids support the operations Nowadays, independently-run, self-sufficient, and segregating them from major grids has been gaining larger ground. segregating them from major grids has been gaining microgrids.” Meanwhile, the concept of scaling down the power supply systems and microgrids.” Meanwhile, the concept of scaling down vehicle charging, etc. In fact, they are at times being referred to by some analysts as “smart referred to by some analysts vehicle charging, etc. In fact, they are at times being whistles, such as smart meters, substation automation, energy storage, bidirectional electric energy storage, bidirectional whistles, such as smart meters, substation automation, Spun off from the smart grid concept, these modern microgrids incorporate similar bells and microgrids incorporate similar Spun off from the smart grid concept, these modern operations or solving geographical constraints. microgrids, and this concept expands beyond just providing a backup support for live-critical providing a backup support for microgrids, and this concept expands beyond just power supply systems. Nowadays, we are witnessing modernized versions of those power supply systems. Nowadays, we are witnessing distribution systems. Also, it has been almost common for hospitals to have backup, off-grid for hospitals to have backup, distribution systems. Also, it has been almost common power grids have been served by diesel-fueled power generators hooked up to local generators hooked up to local power grids have been served by diesel-fueled power feasible approach to power supply. For many years, localities without access to major localities without access to major feasible approach to power supply. For many years, Microgrid is not a novel concept, as in most remote communities self-containment is the only communities self-containment Microgrid is not a novel concept, as in most remote The concept of microgrids is gaining momentum; their share in the energy space is growing. their share in the energy space The concept of microgrids is gaining momentum; 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 E: [email protected] Laura Smythe. P: 604-790-3299. 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.com yet to see what types of new contacts and yet to see what types of new microgrid services are developed between well as ISO/RTOs, operators and utilities, as into their dispatch and how microgrids will fit stacks. But there are many gaps that microgrid developers have yet to close, from finding sustainable and less expensive batteries to reducing dependence on diesel generators, which are still the most available and reliable generation source. When this happens, we will move one step closer to a new paradigm with a new type of energy markets player, the microgrid operators. In this paradigm, conventional grids and microgrids will work in sync complementing each other. side. But this is just a beginning. We have and Siemens are working on the hardware to provide software platforms and apps. GE and Apple are couple of the first pioneers optimizing microgrid operations. Microsoft platforms that are capable of monitoring and The next step is creating technological source of power supply to the grid. spikes, microgrids can become just another bidirectional supply. During times of demand as a special customer class with operations. In fact, microgrids can be treated microgrids as assets to support major grids’ common approach is to view these together with microgrid operators. The most developing mutually beneficial solutions preventive measures and embark on Consolidated Edison in New York, take demand pockets. Some utilities, like clientele, resulting in utilities losing large Obviously, microgrids are taking over the Obviously, microgrids are utilities raises reasonable concerns. utilities raises reasonable The impact from microgrids on traditional The impact from microgrids projects that serve exactly these purposes. projects that serve exactly microgrid and electric vehicle (EV) charging microgrid and electric vehicle $20 million that the state allocated to fund $20 million that the state Commission announced winners of over Commission announced February 3, 2015, the California Energy February 3, 2015, the California focus of California authorities. On focus of California authorities. renewable-based technologies are the main renewable-based technologies microgrids. Low carbon-based and microgrids. Low carbon-based local resources are also lining up for are also lining up for local resources renewable generation and prefer relying on and prefer relying renewable generation Those who adopt goals of high penetration of goals of high penetration Those who adopt 200 MW installations. 200 MW installations. table in New York State, ranging from 10 to York State, ranging from table in New currently several microgrid projects on the projects several microgrid currently times of major grid failures. There are failures. There of major grid times communities in an “island mode” during “island mode” in an communities that can ensure power supply to the to the supply power can ensure that February 2015 Power 7

PJM AEP Zone Day-Ahead Off-Peak Fixed Price Future PJM AEP Zone Day-Ahead Peak Fixed Price Future PJM FE Ohio Day-Ahead Off-Peak Fixed Price Future PJM FE Ohio Day-Ahead Peak Daily Fixed Price Future PJM AEP Zone Day-Ahead Off-Peak Daily Fixed Price Future PJM AEP Zone Day-Ahead Peak Daily Fixed Price Future PJM FE Ohio Day-Ahead Future PJM FE Ohio Day-Ahead Off-Peak Daily Fixed Price Future MISO Hub Day-Ahead Peak Daily Fixed Price Price Future MISO Texas Hub Day-Ahead Off-Peak Daily Fixed Future SPP North Hub Day-Ahead Peak Daily Fixed Price Future SPP North Hub Day-Ahead Off-Peak Daily Fixed Price Future SPP South Hub Real-Time Peak Daily Fixed Price Future SPP South Hub Real-Time Off-Peak Daily Fixed Price PJM AEP Zone Day-Ahead Peak Fixed Price Future PJM AEP Zone Day-Ahead

February 2015 To learn more, book a complimentary ZEMA demonstration. Market Analyzer, while graphs can be viewed instantly and customized for visual preference. and customized for visual Market Analyzer, while graphs can be viewed instantly for moving average, standard deviation, and sliding correlation are easily applied in ZEMA’s correlation are easily applied for moving average, standard deviation, and sliding average. Moreover, grey crosses denote sliding correlations between the two series. Formulas between the two series. average. Moreover, grey crosses denote sliding correlations determined if the points fall outside of two standard deviations of each series’ moving deviations of each series’ moving determined if the points fall outside of two standard Chicago Hub by PJM. High and low values (red points for MISO and yellow points for PJM) are for MISO and yellow points Chicago Hub by PJM. High and low values (red points January 1-31, 2015, from PJM and MISO. Texas Hub prices are published by MISO, and Hub prices are published by MISO, January 1-31, 2015, from PJM and MISO. Texas The ZEMA graph below shows the day ahead LMP (Locational Marginal Price) for (Locational Marginal Price) for The ZEMA graph below shows the day ahead LMP ZEMA, ZE’s data management solution, collects numerous records from PJM, SPP, and MISO. To learn more, from PJM, SPP, and MISO. To learn more, ZEMA, ZE’s data management solution, collects numerous records book a free ZEMA demo by visiting http://www.ze.com/book-a-demo/. See the original announcement. • • • • • • • • • • • • • • new financial power futures: Futures Contracts following the Intercontinental Exchange (ICE) Futures US listed On February 16, 2015, the ICE Futures US Lists PJM, MISO, and SPP Power SPP and Power MISO, ListsICE Futures US PJM, Power

© Graph created with ZEMA

EEX Launches Nordic Power Futures Effective February 16, 2015, the European Energy Exchange (EEX) reinforced its commitment on the Nordic power market with new products and a regional presence. EEX launched exchange trading in Nordic power futures on February 16. The next day, it introduced location spreads for further market areas. In addition, EEX plans to open an office in Oslo shortly in order to support customers on site and to better service the market’s needs for further development. EEX’s presence in the Nordic Market is supported by Geir Reigstad, who is working as a consultant for the exchange. Concurrently with the Nordic power futures, EEX launched exchange trading for Spain and Switzerland in February. See the original announcement.

EEX Launches Online Shop for Market Data and New SFTP Server On February 1, 2015, EEX launched its new online shop for market data and a new sftp server. The following files provided on the new sftp server have been removed from the EEX website as of February 16: • Phelix_Quarterly.xls • eex_trade_registration_futures_history_2014.csv • spanish_financial_power_futures_history_2014.csv • italian_financial_power_futures_history_2014.csv • ECarbix_history_YYYY.xls See the original announcement.

ZEMA collects a range of European power market data, including over 40 records from the EEX. These records include futures price and trading data. To learn more, visit http://www.ze.com/the-zema-solutions/.

February 2015 8 Power

Italian Borders Market Coupling Launches On February 24, 2015, the Italian Borders Market Coupling successfully launched. From this date onwards, capacity for the Italian-Austrian, Italian-French, and Italian-Slovenian borders will be implicitly allocated through the PCR solution for the day-ahead markets, making those borders part of the MRC. Three of the five borders of the Italian Borders Market Coupling Project have been coupled with the Multi-Regional Coupling (MRC), thus linking the majority of EU power markets – from Finland to Portugal and Slovenia. The launch of the Italian Borders Market Coupling provides evidence of the flexibility and reliability of the Price Coupling of Regions (PCR) solution. The day-ahead markets of MRC extended to the Italian Borders Market Coupling covers 20 European countries, accounting for about 2,800 TWh of yearly consumption. The daily average cleared volume over these countries amounts to over 4 TWh, with an average daily value of over €150m. See the original announcement.

Platts to Remove Descriptive Fields in North American Power CSV Files Effective May 18, 2015, the descriptive fields (Commodity,Region1,Region2,Hub,TOD,Price Tp,GD Id,GD Tkr,Rel Del Pd,Del Pd,Del Yr) in North American power Market Data CSV files delivered on Platts.com (Athena) will be removed. In June 2014, Platts Reference Standard (PRS) was launched for electric power and natural gas symbols, which provides a standardized set of reference data for each symbol. The reference data is delivered via CSV files on Platts FTP site, and through Platts Market Data Direct Excel plug-in and API. This will also bring Platts’ North American power Market Data files in line with the standard CSV data files. For all impacted Market Data categories from which the additional descriptive fields will be removed, see page 45 of Market Data User Guide PDF. See the original announcement.

February 2015 9 Power

Platts to Discontinue UK High/Low Power Assessments Effective May 5, 2015, Platts intends to remove the table named Platts UK Assessments (GTMA, GBP/MWh) from page 9 of European Power Daily. The table displays UK power assessments as a high/low spread. The discontinuation of the table in European Power Daily will not affect the databasing of UK GTMA power prices. Platts will continue to publish the Platts UK Assessment Midpoints table on page 2 of European Power Daily. The data series will continue to be published as a high/low range on European Power Alert and will remain available in Market Data category EE. See the original announcement.

APX and Dutch Energy Regulator Sign MOU on REMIT Implementation On January 28, 2015, APX announced the signing of a Memorandum of Understanding (MOU) with the Dutch energy regulator Autoriteit Consument & Market (ACM). Signing of the MOU reaffirms and formalizes the agreements in place between APX and ACM for the mutual work under REMIT Article 13 and 15. This MOU will enable APX and ACM to detect and investigate potential market manipulation and insider trading. The MOU outlines procedures and practices for the cooperation. It does not replace nor create additional obligations than those arising from REMIT or national electricity regulation. The cooperation will not restrict, extend or alter the existing powers, functions, or duties of APX or ACM. See the original announcement.

February 2015 10 Petroleum 11

February 2015 calorific value basis. content dry basis and 50 HGI in Supramax 50,000 mt vessels on a 7,500 kcal/kg NAR mt vessels on a 7,500 kcal/kg content dry basis and 50 HGI in Supramax 50,000 The price assessment will be normalized to reflect the price of mid-sulfur petcoke of 5% sulfur the price of mid-sulfur petcoke The price assessment will be normalized to reflect of 30-80. See the original announcement. 7,000-8,000 kcal/kg NAR, 4-5.5% sulfur content dry basis and Hardgrove Grindability Index dry basis and Hardgrove Grindability 7,000-8,000 kcal/kg NAR, 4-5.5% sulfur content The range of petcoke specifications for inclusion in the assessment will be: calorific value of in the assessment will be: calorific The range of petcoke specifications for inclusion port of Iskenderun, but will take into account the ports of Izmir, Marmara and Samsun. port of Iskenderun, but will take into account the to the middle of the assessment period. The assessment will be normalized to the discharge will be normalized to the to the middle of the assessment period. The assessment delivery window. Cargos traded with more prompt or further forward laycans will be normalized or further forward laycans will be delivery window. Cargos traded with more prompt The new assessment will take into account petcoke trades done in a forward 30-60-day trades done in a forward 30-60-day The new assessment will take into account petcoke petroleum coke assessment. HGI of 38-55 would be considered. HGI of 38-55 would be considered. a new weekly CIF Turkey mid-sulfur Effective, March 4, 2015, Platts intends to launch middle of the assessment period. For assessment purposes, petcoke with 6-8% sulfur and sulfur 6-8% period. For assessment purposes, petcoke with middle of the assessment Mid-Sulfur AssessmentPlatts Petcoke to Launch Turkey Weekly Cargoes traded with more prompt or further forward laycans would be normalized to the to the prompt or further forward laycans would be normalized Cargoes traded with more To learn 75 reports from the Asia-Pacific region. ZEMA collects Platts petroleum data from all over the world, including demo at http://www.ze.com/book-a-demo/. more about ZEMA’s extensive data reach, book a complimentary US$/mt, CFR Krishnapatnam (East) and Kandla (West), 30-60 days from date of publication. publication. date of (East) and Kandla (West), 30-60 days from US$/mt, CFR Krishnapatnam See the original announcement. content of 6.5% and a HGI of 40, delivered to India on a 50,000-mt Supramax vessel, in in vessel, of 40, delivered to India on a 50,000-mt Supramax content of 6.5% and a HGI assessments reflect the value of high-sulfur fuel grade (HSFG) petroleum coke with a sulfur a coke with value of high-sulfur fuel grade (HSFG) petroleum assessments reflect the assessments to reflect the value of imports into India’s East and West coasts. The new new The value of imports into India’s East and West coasts. assessments to reflect the Platts Assessments to Launch Petcoke CFR India coke Platts will launch two new fuel grade petroleum Effective March 11, 2015, ZEMA, ZE’s data management solution, collects over 300 Platts records on petroleum and other liquids. To learn more and other liquids. over 300 Platts records on petroleum management solution, collects ZEMA, ZE’s data . visit http://www.ze.com/the-zema-solutions/data-coverage/ about ZEMA’s vast data library, (crack), as a spread to CIF NWE jet cargoes and as a spread to FOB ARA diesel barges. and as a spread to spread to CIF NWE jet cargoes (crack), as a See the original announcement. Platts would also publish the price in outright terms, as a differential to ICE Brent crude futures to ICE Brent outright terms, as a differential also publish the price in Platts would ICE low sulfur gasoil futures three months forward. gasoil futures three months ICE low sulfur On June 1, 2015, Platts intends to launch new assessments for FOB Rotterdam for FOB new assessments to launch Platts intends 1, 2015, On June to differentials swaps as to assess the proposal is time. The 16:30 London swaps at jet barge Platts to Launch Rotterdam FOB Barge Swaps Jet Petroleum 12 . © Graph created with ZEMA

February 2015 more about the ZEMA solution, please book a complimentary demonstration. more about the ZEMA solution, please book a complimentary the price of gasoline having an impact, likely adding to the shippers’ running costs. To learn to the shippers’ running costs. the price of gasoline having an impact, likely adding sought to fill their new ships and defend their market share. From the graph, we can also see share. From the graph, we sought to fill their new ships and defend their market we can see rates becoming increasingly competitive, creating a price war, as container lines we can see rates becoming increasingly competitive, easy to see that the shipping lines steadily increased their rates from 2010 onwards. In 2011, their rates from 2010 onwards. easy to see that the shipping lines steadily increased included is the Average RBOB for gasoline within the same time periods. From the graph it is the same time periods. From the included is the Average RBOB for gasoline within Atlantic coast, TC 5 Ras Tanura to Yokohama, and TD3 Middle Easterm Gulf to Japan. Also TD3 Middle Easterm Gulf to Japan. Atlantic coast, TC 5 Ras Tanura to Yokohama, and The following ZEMA graph represents three alternative tanker routes: TC2 Europe to the US tanker routes: TC2 Europe The following ZEMA graph represents three alternative To learn more about gasoline pricesTo in Europe and the States, United use ZEMA to view records from Platts. learn To visit http://www.ze.com/the-zema-solutions/ more, information that Platts received up until February 18, 2015. information that Platts received See the original announcement. process that price against M3 will be normalized back to M4 based on publicly available available M3 will be normalized back to M4 based on publicly process that price against (11.5 RVP) waterborne gasoline. Bids and offers in the Platts Market on Close assessment assessment Bids and offers in the Platts Market on Close (11.5 RVP) waterborne gasoline. Gasoline AssessmentsGasoline M3 against naphtha Platts began assessing standard and heavy Effective February 19, 2015, Platts Introduces M3 Waterborne against Naptha Petroleum 13

AAXTACY – The Colonial cycle number for which Line 1 space is assessed for gasoline for gasoline cycle number for which Line 1 space is assessed AAXTACY – The Colonial average for line space for gasoline on Line 1 AAXTA03 – The monthly gasoline on Line 1 and Line 3 AAXTC00 – Line space for 1 and Line 3 space are assessed for gasolineAAXTCCY – The Colonial cycle number for which Line gasoline on Line 1 and Line 3 AAXTC03 – The monthly average for line space for AAXTB00 – Line space for gasoline on Line 3 3 space is assessed for gasoline AAXTBCY – The Colonial cycle number for which Line gasoline on Line 3 AAXTB03 – The monthly average for line space for AAXTD00 – Line space for distillates on Line 2 2 space is assessed for distillates AAXTDCY – The Colonial cycle number for which Line distillates on Line 2 AAXTD03 – The monthly average for line space for Line 3 AAXTG00 – Line space for distillates on Line 2 and 2 and Line 3 space are assessed for distillatesAAXTGCY – The Colonial cycle number for which Line distillates on Line 2 and Line 3 AAXTG03 – The monthly average for line space for AAXTE00 – Line space for distillates on Line 3 3 space is assessed for distillates AAXTECY – The Colonial cycle number for which Line distillates on Line 3 AAXTE03 – The monthly average for line space for AAXTA00 – Line space for gasoline on Line 1 AAXTA00 – Line space for

February 2015 See the original announcement. Frozen cycles and spur lines are not part of the assessments. and are not limited to any specific product. The assessments reflect the transfer of a minimum of 25,000 barrels of distillates or gasoline of 25,000 barrels of distillates The assessments reflect the transfer of a minimum • • • • • • • • • • • • • • • • • • The 18 new assessments are: The 18 new assessments The assessments are linked with cycle numbers on the Colonial Pipeline schedule. with cycle numbers on the Colonial Pipeline The assessments are linked Line 1 and/or Line 3, as well as Line 2 and/or Line 3. Line 1 and/or Line 3, as As of February 2, 2015, Platts has started assessing the value of line space for assessing the value 2, 2015, Platts has started As of February Colonial’s along during the exchange of product at two locations premium or discount paid Platts Launches Colonial Pipeline Line Assessments Space the They reflect a negotiated spot market price in cents/gallon. The assessments reflect and Linden, New Jersey. and Linden, distillates and gasoline on three major Colonial Pipeline segments between Pasadena, Texas, between Pasadena, Colonial Pipeline segments gasoline on three major distillates and Petroleum 14 Frequency Weekly Frequency Weekly Weekly Weekly Frequency Daily Daily

. Category ->Products-> Gasoil/Diesel/ Heating oil-> Northwest Europe ->Petroleum Coke->USA ->Petroleum Coke->East Mediterranean ->Petroleum Coke-> Latin America Category Category ->Products->Gasoil/Diesel/ Europe Heating oil->Northwest ->Products->Gasoil/Diesel/ Europe Heating oil->Northwest Unit USD/t USD/t USD/t USD/t Unit Description Gasoil bunker Antwerp Gasoil bunker Rotterdam Description Gasoil diesel 10ppm German NWE barge snapshot Continuous Forward 0 0 Petroleum coke fob USWC <2.0% sulphur 45 HGI Petroleum coke cfr Turkey 4.5% 70 HGI Petroleum coke fob Venezuela 4.5% 70 HGI Description Continuous Forward 0 8 8 8 Price Type Price Type 1, 2 1, 2, 6, 7 Price Type 8

21 21 21 Time Stamp Stamp 6 Time Time Stamp 6 6

PA5001478 PA0015716 PA0015717 PA0015718 PA-code PA-code PA-code PA0011464 PA0011472 February 2015 Energy Argus Petroleum Coke: On February 11, 2015, Argus added the following new codes to On February 11, 2015, Argus added the following See the original announcement. Argus Assessments Launches Petcoke New

On February 12, 2015, Argus added a new weekly snapshot value for German added a new weekly snapshot value for German On February 12, 2015, Argus ftp.argusmedia.com server. in the \DAGM folder of the Argus Adds New Weekly Snapshot Value for German Barge Diesel Value Argus Snapshot Weekly Adds New data files The following code is being added to the DAGM 10ppm diesel barge NWE. ZEMA collects a range of Argus petroleum assessment data from including data, the European Crude Prices) (Spot record and the Argus learn visit Crude http://www.ze.com/the-zema-solutions/ more, record. To See the original announcement. the DLP files in the DEURO folder of ftp.argusmedia.com. DEURO folder files in the the DLP Effective March 3, 2015, Argus introduced the following series. These series appear in series appear series. These the following introduced 2015, Argus March 3, Effective Argus Assessments Introduces Bunker European New Gasoil Petroleum 15 Frequency Daily Daily Daily Frequency Monthly Monthly Monthly Weekly Weekly Weekly Category ->Products-> Gasoil/Diesel/ Heating oil- >Ukraine ->Products-> Gasoil/Diesel/ Heating oil- >Ukraine ->Products-> Gasoline-> Ukraine Unit USD/t USD/t UAH/t ->Petroleum Coke->USA ->Petroleum ->Petroleum Coke-> East Mediterranean ->Petroleum Coke-> Latin America ->Petroleum Coke->USA ->Petroleum Coke-> East Mediterranean ->Petroleum Coke-> Latin America Category Differential Basis Diesel NWE barges/ cargo Diesel fob Med - USD/t USD/t USD/t USD/t USD/t USD/t Unit Description Gasoil die- sel 10 ppm daf Belar- us/Ukraine border (Lithuania) Gasoil diesel 10 ppm cif Ukrainian ports Gasoline A-95 fca North-West Ukraine Petroleum coke fob Petroleum <2.0% sulphur USWC month 45 HGI cfr Petroleum coke Turkey 4.5% 70 HGI month fob Petroleum coke Venezuela 4.5% 70 HGI month Petroleum coke fob USWC <2.0% sulphur 45 HGI 4 weeks average Petroleum coke cfr Turkey 4.5% 70 HGI 4 weeks average Petroleum coke fob Venezuela 4.5% 70 HGI 4 weeks average Description Continuous Forward 0 0 0 1, 2 1, 2 1, 2 8 8 8 Price Price Type Price Type 1, 2, 6, 7 1, 2, 6, 7 1, 2 0 0 0 21 21 21 Time Time Stamp Stamp 0 0 0 Time

PA0015696 PA0015697 PA0015698 PA-code PA0015719 PA0015720 PA0015721 PA0015722 PA0015723 PA0015724 PA-code February 2015 See the original announcement. in DUMF folder on tp.argusmedia.com server. . The following series will appear in DUMF module and in dumf.csv files Ukrainian Motor Fuels. The following series will appear in DUMF module Argus Assessments Ukrainian Adds New and Gasoline Diesel daily assessments in Argus Effective February 9, 2015, Argus introduced new ZEMA collects over 100 Argus reports regularly, more than 40 of which pertain to petroleum products. To learn more To regularly, more than 40 of which pertain to petroleum products. ZEMA collects over 100 Argus reports . visit http://www.ze.com/the-zema-solutions/data-coverage/ about ZEMA’s vast data coverage, See the original announcement. Petroleum 16 Weekly Weekly Frequency Daily Daily Daily Frequency

DeWitt Benzene Daily Paraxylene-> Asia-Pacific ->Petrochemicals-> Paraxylene-> Asia-Pacific Category ->Petrochemicals-> ->Products->Gasoil/ Diesel/Heating oil->US Gulf coast ->Products->Gasoil/ Diesel/Heating oil->US Gulf coast ->Products-> Gasoil/Diesel/Heating oil->Northwest Europe Category CNY/t Unit USD/t USD/ mnBtu USD/ mnBtu USD/ mnBtu Unit Paraxylene Sinopec delivered CNY/t month Description Paraxylene Sinopec delivered import parity USD/t month Gasoil bunker $/mnBtu Gasoil bunker $/mnBtu Gasoil bunker Rotterdam $/mnBtu Description 1 Continuous Forward 1 1, 2 1, 2 1, 2 Price Type 1, 2 Price Type 1, 2 0 Time Stamp 0 2 2 6 Time Stamp

PA0015702 PA0015701 PA0015700 PA0015688 PA-code PA-code PA0015687 February 2015 See the original announcement.

On February 6, 2015, Argus added the following three gasoil bunker codes to On February 6, 2015, Argus added the following Argus Adds New Gasoil Bunker Codes Bunker Argus Gasoil Adds New ZEMA collects data on a wide range of petroleum products and other liquids from reports such as ZEMA collects data on a wide range of petroleum products and See the original announcement. folder offtp.argusmedia.com. . and DeWitt DTX Weekly. Learn more at http://www.ze.com/the-zema-solutions/ Argus Marine Fuels: . This applies to the dtxweekly data file in the DATA/DTXWeekly PET. This applies to the dtxweekly Xylenes, and Isomers / Argus introduced new series to Argus DeWitt Toluene, Effective February 6, 2015, Argus Introduces Paraxylene New Sinopec Assessments Petroleum 17

FIX/FAST and iLink: tag 55-Symbol MDP 3.0 tag 1151 - Security Group tag 55-Symbol RF RF PT RF PT RF RF JR JR FIX/FAST and iLink: tag FIX/FAST and 3.0 tag 1151 - 55-Symbol MDP Security Group tag 1151-SecurityGroup MFR MNS MBC MDB MEW MSB MFP FIX/FAST and iLink: tag 1151-Security Group MDP 3.0: tag 6937-Asset BSA BEA FIX/FAST and iLink: tag FIX/FAST and Group 1151-Security 6937-Asset MDP 3.0: tag

Benzene fob South Korea (Argus) Benzene fob South Korea (Argus) Trade Month Futures Futures Product Name Mini 3.5% Fuel Oil Barges FOB Rdam (Platts) Crack Spread (100mt) Futures Mini 1% Fuel oil Cargoes FOB NWE (Platts) Crack Spread (100mt) Futures Mini Brent Financial Futures Mini Dated Brent (Platts) Financial Futures Mini East-West Fuel Oil Spread (Platts) Futures Mini Singapore Fuel Oil 380cst (Platts) vs. European 3.5% Fuel Oil Barges FOB Rdam (Platts) Futures Mini 1% Fuel Oil Cargoes CIF NWE(Platts) Futures Product European Benzene cif ARA (Argus) European Benzene cif ARA Trade Month Futures Futures Product Names Futures Product Trade Month Benzene Futures Trade Month Benzene February 2015 See the original announcement. for trading on CME Globex and clearing submission via CME ClearPort: for trading on CME Globex Effective March 8, 2015, the following crude oil and refined futures will be listed listed the following crude oil and refined futures will be Effective March 8, 2015, CME ClearPort: CME to LaunchFutures Crude Oil and Refined Using ZEMA’s advanced data collection and analytic capabilities, market participants can easily keep track of the new keep track and analytic capabilities, market participants can easily Using ZEMA’s advanced data collection /. Globex. To learn more, visit http://www.ze.com/the-zema-solutions data that will be generated by CME See the original announcement. Chicago Mercantile Exchange (CME) on CME Globex and clearing submission via on CME Globex and clearing Exchange (CME) Chicago Mercantile On March 8, 2015, the following trade month Benzene futures will be listed for trading by the trading be listed for futures will Benzene trade month the following 8, 2015, On March Benzene Futures Benzene CME to List European and South Korean Trade Month to ListCME European and South Trade Korean NaturalPetroleum Gas 18 Rule Section TTT Part II Rule Section TTT A C A C C C C A C C A A A B C Contract Name Contract Name Future WTI 1st Line Balmo (Platts) Future vs. Fourth Month BFOE Dated Brent (Platts) 10ppm FOB Rotterdam Premium Unleaded Gasoline Barges (Platts) Future (Platts) vs. Argus Eurobob Singapore Mogas 92 Unleaded Future Oxy FOB Rotterdam Barges Prompt Pipeline (Platts) vs. Gulf Coast CBOB 87 Gasoline RBOB Gasoline 1st Line Future Prompt Pipeline (Platts) vs. Gulf Coast CBOB 87 Gasoline Future RBOB Gasoline 1st Line Balmo (Platts) vs. RBOB Gasoline Group 3 Sub-octane Gasoline 1st Line Future (Platts) Mini Future ULSD 10ppm CIF Med Cargoes Gulf Coast Jet Fuel (Platts) vs Heating Oil 1st Line Balmo Future Argus NYH Jet Fuel vs Heating Oil 1st Line Balmo Future Fuel Oil 1% CIF NWE Cargoes (Platts) Mini Future Fuel Oil 1% FOB Med Cargoes (Platts) Mini Future Fuel Oil 3.5% FOB Med Cargoes (Platts) Mini Future 1st Fuel Oil 3.5% FOB Rotterdam Barges (Platts) vs. Brent Line Balmo Future (in Bbls) vs. Fuel Oil 3.5% 500 CST FOB Rotterdam Barges (Platts) 3.5% FOB Rotterdam Barges (Platts) Future

Code 02L-03F BUM GDI GDK GDM 056-060 GDL FFM 04B-055 03G-04A FFI FFF FFG F1L-F2F FFK February 2015 ZEMA collects a wide range of crude oil and petroleum products data, including more than 25 from ICE. To learn more To learn data, including more than 25 from ICE. ZEMA collects a wide range of crude oil and petroleum products by visiting book a complimentary demo today about how ZEMA can enhance your company’s market intelligence, http://www.ze.com/book-a-demo/. who will act as a central counterparty to all trades. See the original announcement. These contracts have been listed on the ICE trading platform and cleared by ICE Clear Europe platform and cleared by ICE These contracts have been listed on the ICE trading 15 oil futures contracts, as detailed in the following table: in the as detailed futures contracts, 15 oil As of February 16, 2015, the Intercontinental Exchange (ICE) Futures Europe launched Europe launched (ICE) Futures Exchange 2015, the Intercontinental 16, As of February ICE Launches European New Oil Futures Petroleum 19 Month PGA Page PGA1861 PGA1861 PGA1861 PGA1861 PGA1871 PGA1871 PGA1871 PGA1871 PGA1861 PGA1861 PGA1861 Month Code AASTY03 AASUA03 AASUM03 AASUC03 AAVVZ03 AASUE03 AASUG03 AASUI03 AAVIW03 AAXCZ03 AARTD03 PGA Page PGA1850 PGA1850 PGA1850 PGA1850 PGA1870 PGA1870 PGA1870 PGA1870 PGA1860 PGA1860 PGA1860 Assessment Rotterdam LS 1% Antwerp LS 1% Dunkirk LS 1% Hamburg LS 1% Gothenburg 1% Great Belt LS 1% Gdansk LS 1% St Petersburg LS 1% Gibraltar LS 1% Algeciras LS 1% Malta LS 1%

Code AASTY00 AASUA00 AASUM00 AASUC00 AAVVZ00 AASUE00 AASUG00 AASUI00 AAVIW00 AAXCZ00 AARTD00 February 2015 See the original announcement. please see the table below. . For a complete list of all affected assessments and their PGA codes, on Platts Global Alert. For a complete list of all affected assessments Platts low sulfur bunker fuel assessments are currently published in Platts Bunkerwire and Platts low sulfur bunker fuel assessments are currently and supply patterns for these fuels, and subscriber demand for new assessments. and supply patterns for these fuels, and subscriber the emerging supply of new ultra low sulfur bunker fuels across Europe and Africa, demand demand Africa, ultra low sulfur bunker fuels across Europe and the emerging supply of new existing European and African ports. Platts will also continue to monitor the development of development ports. Platts will also continue to monitor the existing European and African Platts will continue to publish assessments for marine gasoil (0.1% sulfur) for all of its of its for all assessments for marine gasoil (0.1% sulfur) Platts will continue to publish two ports. low sulfur bunker fuel assessments in order to reflect the pockets of demand specific to the specific in order to reflect the pockets of demand low sulfur bunker fuel assessments still exist, though demand is drastically reduced. Platts is maintaining its Genoa and Piraeus Piraeus Genoa and is drastically reduced. Platts is maintaining its still exist, though demand or other similar, ultra low sulfur fuels. Pockets of demand for 1% sulfur fuel oil across Europe oil across sulfur fuels. Pockets of demand for 1% sulfur fuel or other similar, ultra low Demand for low sulfur bunker fuel has generally been replaced by demand for marine gasoil, for marine fuel has generally been replaced by demand Demand for low sulfur bunker bunker demand for 1% sulfur fuel oil largely disappeared. bunker demand for 1% sulfur ships operating within any Emission Control Area to a maximum of 0.1% from 1% previously, previously, from 1% Emission Control Area to a maximum of 0.1% ships operating within any Prevention of Pollution from Ships (MARPOL), which further limited the sulfur emissions from emissions Ships (MARPOL), which further limited the sulfur Prevention of Pollution from the January 1, 2015 implementation of legislation from the International Convention for the Convention of legislation from the International 1, 2015 implementation the January In January 2015, low sulfur fuel oil became largely redundant as a bunker fuel. In the wake of as a bunker fuel. In largely redundant low sulfur fuel oil became In January 2015, regional coastal and domestic usage. regional coastal assess low sulfur bunker fuel in the ports of Genoa and Piraeus, reflecting the continuation of reflecting the continuation of Genoa and Piraeus, bunker fuel in the ports assess low sulfur Algeciras, and Malta low sulfur (1% sulfur) bunker fuel assessments. Platts will continue to Platts will continue bunker fuel assessments. Malta low sulfur (1% sulfur) Algeciras, and As of September 1, 2015, Platts will no longer publish its Northwest European, Gibraltar, Gibraltar, European, its Northwest publish will no longer 2015, Platts 1, As of September Bunker AssessmentsBunker Platts to DiscontinueEuropean Mediterranean and Low Sulfur 1% Petroleum 20

MEK DER US Domestic Weekly PHADT00 PHAYU03 MEK DER US Domestic Weekly PHADT00 PHAYU03 MIBK FOB USG Weekly PHADW00 PHAYX03 MIBK DER US Domestic Weekly PHADZ00 PHAYY03 MEK FOB USG Weekly PHADQ00 PHAYT03

February 2015 Global Solventswire. and in the These assessments can be found on Platts Alert See the original announcement. • • • • Affected assessments: Platts intends to end publication of these assessments from September 1, 2015. from September 1, 2015. Platts intends to end publication of these assessments and methyl isobutyl ketone assessments in the US due to a lack of liquidity in these markets. due to a lack of liquidity in these and methyl isobutyl ketone assessments in the US On Feb 9, 2015, Platts announced its proposal to discontinue all methyl ethyl ketone discontinue all methyl ethyl ketone On Feb 9, 2015, Platts announced its proposal to . These assessments are also published in the Platts Petrochemical Alert Platts Assessments Discontinues Ketones US PHARA00; Monthly Average, PHARB03. See the original announcement. listed under the following codes in the Platts price database: DOP FD US Domestic Weekly, database: DOP FD US Domestic listed under the following codes in the Platts price become more commonplace. These assessments are published on Page PCA161 and are These assessments are published on Page become more commonplace. to publish its existing New York Harbor gasoline assessment at 16:30 London time. time. York Harbor gasoline assessment at 16:30 London to publish its existing New have plasticizers for DOP has dropped significantly as substitute Liquidity in the US market page 1450. Platts will continue also be found on Platts Global Alert page 1450. Platts will continue These assessments can to a change in market dynamics. phthalate assessment due Euro cts/gal). Platts DOP Assessment Weekly Stops dioctyl US announced a proposal to discontinue its weekly On February 9, 2015, Platts AAPYY10 (No. 2 at London 16:30 in cts/gal) and AAPYY00 (No. 2 at London 16:30 in 2 at London 16:30 cts/gal) and AAPYY00 (No. 2 at London 16:30 in AAPYY10 (No. See the original announcement. As a result of this change, Platts will no longer publish assessments under database codes under database no longer publish assessments this change, Platts will As a result of March 2015. March 2015. US Northeast distillate markets and a lack of an Atlantic Coast No. 2 cargo assessment after No. 2 cargo assessment a lack of an Atlantic Coast distillate markets and US Northeast The proposed change is a result of evolving market conditions and state regulations in the and state regulations market conditions change is a result of evolving The proposed assessments on the same day. same day. on the assessments at London MOC, in tandem with the discontinuation of its US Atlantic Coast distillate cargo Coast distillate its US Atlantic of the discontinuation tandem with MOC, in at London As of April 1, 2015, Platts will no longer publish its No. 2 gasoil cargo assessment assessment 2 gasoil cargo its No. no longer publish Platts will 1, 2015, As of April Platts to End No. 2 New York Harbor Cargos at London at Cargos Harbor MOC Platts York New 2 No. to End Petroleum 21 Frequency Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Frequency ->Spark spread->North America->New York ->Spark spread->North America->New York ->Spark spread->North America->New York ->Spark spread->North America->New York ->Spark spread->North America->New York ->Products->Gasoil/Diesel/ Heating oil->US east coast Category Category ->Products->Fuel oil->Northwest ->Products->Fuel Europe oil->Northwest ->Products->Fuel Europe ->Products->Fuel oil-> Mediterranean ->Products->Fuel oil->Northwest Europe ->Products->Fuel oil-> Mediterranean ->Products->Fuel oil-> Mediterranean USD/ mnBtu USD/ mnBtu USD/ mnBtu USD/ mnBtu USD/ mnBtu USD/ mnBtu Unit Description Fuel oil bunker low Fuel oil bunker Antwerp sulphur 380 cst low Fuel oil bunker sulphur 380 cst Rotterdam Fuel oil bunker LS 380 cst Gibraltar Fuel oil bunker LS 380 cst Hamburg Fuel oil bunker LS 380 cst Malta Fuel oil bunker LS 380 cst Piraeus Spark spread NYH Fuel oil No 6 0.3% high-pour Spark spread NYH Fuel oil No 6 1% Spark spread NYH Diesel barge Fuel oil No 6 0.3% high-pour NYH BTU value Fuel oil No 6 1% NYH BTU value Diesel 500ppm NYH barge BTU value Description Price Type 1, 2 1, 2 1, 2 1, 2 1, 2 1, 2 8 8 8 8 8 8 Price Type 2 2 2 2 2 2 Stamp Time Stamp 6 6 6 6 6 6 Time

PA0002198 PA0002197 PA0002195 PA0002194 PA0002193 PA0002192 PA-code PA0004110 PA0004111 PA0011459 PA0011460 PA0011461 PA0011462 PA-code February 2015 dhp .csv files in the DUSPR folder on ftp.argusmedia.com. publication and data module. For FTP subscribers, these changes apply to data in the these changes apply to data publication and data module. For FTP subscribers, Effective February 17, 2015, Argus stopped codes in the Argus US Products Effective February 17, 2015, Argus stopped codes Argus Discontinues US Diesel and Fuel Oil AssessmentsArgus and Fuel Discontinues Diesel US See the original announcement. DAMarineF files in the DAMarineF folder of ftp.argusmedia.com. in the DAMarineF folder DAMarineF files On February 27, 2015, Argus discontinued the following series. These series are in the series are series. These the following Argus discontinued 27, 2015, On February Oil Bunker AssessmentsOil Bunker Argus Stops Publishing European and Mediterranean Fuel European Publishing Mediterranean and Argus Fuel Stops See the original announcement. Petroleum 22

NYMEX Rulebook Chapter Number 1144 319 Commodity Code CFA 1C

Product Name Brent CFD: Dated Brent (Platts) vs. Brent Front Month Brent CFD: Dated Brent (Platts) (Platts) Weekly Futures Brent CFD: Dated Brent (Platts) vs. Brent Front Month Brent CFD: Dated Brent (Platts) (Platts) Daily Futures February 2015 agreed absolute price. See the original announcement. The governing factor in the price assessments, however, reflects the negotiated and mutually reflects the negotiated and The governing factor in the price assessments, however, 3,000-6,000 mt/year. assessments, although assessments will be normalized to reflect contractual commitments of to reflect contractual commitments assessments, although assessments will be normalized Platts may use information on all contractually agreed volumes to form the basis of its volumes to form the basis Platts may use information on all contractually agreed Assessment Parameters the parameters reflected in Effective February 26, 2015, Platts further defined or procure regular monthly volumes. negotiated against an annual commitment to supply Platts Edits European Polymer Contract Price as one Platts defined a contract price its European polymer contract price assessments. See the original announcement. and Practices) of the NYMEX Rulebook were removed from the Rulebook. and Practices) of the NYMEX Platts to Extend Low Sulfur Futures Curve Gasoil assessments for ICE low Effective June 1, 2015, Platts intends to launch new located in the Interpretations and Special Notices Section of Chapter 5 (Trading Qualifications Qualifications and Special Notices Section of Chapter 5 (Trading located in the Interpretations conditions contained in the Position Limit, Position Accountability, and Reportable Level Table Level the Position Limit, Position Accountability, and Reportable conditions contained in See the original announcement. forward. 12 quarters, and three years low sulfur gasoil futures assessments to 36 months, and terms all other references to the contracts, and the respective product chapters, the ICE and three. The proposal is to extend Currently, Platts only assesses months one, two, As a result of the delisting, information regarding these contracts has been deleted from the from deleted information regarding these contracts has been As a result of the delisting, sulfur gasoil futures at 16:30 London time.

out in the table below. There was no open interest in these contracts. below. There was no out in the table CME Delists Two Brent CrudeCME Delists CFD Futures Oil Contracts Two set futures contracts as two Brent crude oil CFD 2, 2015, NYMEX delisted On February Petroleum

Platts’ Data Source Changes Petroleum Floor Trading Volumes Effective December 22, 2014, Platts’ NYMEX end of day data provider Commodity Systems Inc. has implemented a change so floor trading volume represents only pit session (RTH: regular trading hours) trading activity. Prior to this date, volume data for floor trading included trading activity from both floor trading and electronic sessions combined. The following are the floor trading contracts affected:

Floor trading contracts Symbol Prefix NYMEX Light Crude Floor XNCL NYMEX RBOB Floor XNRB NYMEX NY ULSD Floor XNHO The corresponding combined trading contracts:

Floor trading contracts Symbol Prefix

NYMEX Light Crude Combined XNCC

NYMEX RBOB Combined XNRB

NYMEX NY ULSD Combined XNHO See the original announcement.

February 2015 23 Natural Gas 24 Frequency Daily Daily Daily Daily Daily Frequency

European European Argus ->Natural gas->Europe ->TTF ->Natural gas-> Europe->TTF ->Natural gas-> LNG-> Americas ->Natural gas-> LNG->Europe Category MWh ->Natural gas->Europe-> Zeebrugge Category USD/t MGOe USD/ mnBtu USD/t MGOe USD/t MGOe Unit Euro/MWh Unit Natural gas TTF $/t MGOe month Natural gas TTF $/ mnBtu month LNG indicative fob USGC $/t MGOe month LNG NW Europe delivered $/t MGOe half-month Description Natural gas Zeebrugge Eur/MWh everyday Description 1 1 1 1 Continuous forward 1, 2 Price Type 1, 2 1, 2 8 2 Price Type 6 6 6 0 Time Stamp 6 Time Stamp

PA0015705 PA0015704 PA0015703 PA0015699 PA0015695 PA-code PA-code February 2015 See the original announcement. March 3, 2000, to present on request. March 3, 2000, to present natural gas codes to As of February 6, 2015, Argus added the following module in the DENG folder on ftp.argusmedia.com. Historical data will also be available from be available on ftp.argusmedia.com. Historical data will also module in the DENG folder CodesGas European Natural Gas data module. The following PA-code details will appear in the DNG the DNG in module. The following PA-code details will appear European Natural Gas data Argus North Adds New American and European Natural Marine Fuels: See the original announcement.

On February 23, 2015, Argus added the following new price types to the Argus added the following new price types to the On February 23, 2015, Argus Argus Adds European Natural Gas AssessmentsArgus Adds European Gas Natural ZEMA collects over 700 data reports regarding natural gas, more than 100 of which are from Platts specifically. To learn which are from Platts specifically. natural gas, more than 100 of 700 data reports regarding ZEMA collects over . http://www.ze.com/the-zema-solutions/data-coverage/ more about ZEMA’s vast data library, visit comparisons data in Eur/MWh in addition to Euro/gigajoule and pence/therm. to Euro/gigajoule data in Eur/MWh in addition comparisons See the original announcement. baseload electricity prices for Northwest Europe. In addition, Platts has published cross-fuel Platts has published Europe. In addition, prices for Northwest baseload electricity Platts included gas prices for Northwest Europe at the Dutch TTF hub, as well as German TTF hub, as well as German Europe at the Dutch gas prices for Northwest Platts included Effective March 2, 2015, Platts updated the Cross-fuels Comparisons table in Comparisons Cross-fuels updated the 2015, Platts March 2, Effective of new data. inclusion with the Gas Daily Platts Cross-FuelsAdds European to GasDaily Data Natural Gas 25

FIX/FAST and iLink: tag 55-SymbolMDP 3.0 tag 1151 - Security Group JQ JQ IPE DPE FIX/FAST and iLink: tag 1151-Security Group MDP 3.0: tag 6937-Asset © Graph created with ZEMA

Italian PSV Natural Gas (ICIS Heren) Calendar Italian PSV Natural Gas (ICIS Month Future (Variable Quantity) Heren) vs. Dutch Italian PSV Natural Gas (ICIS Calendar Month TTF Natural Gas (ICIS Heren) Spread Future (Variable Quantity) Product February 2015 about the ZEMA solution, please book a complimentary demonstration. about the ZEMA solution, please book a complimentary customize in ZEMA, due to the solution’s enhanced visualization functionalities. To learn more visualization functionalities. To customize in ZEMA, due to the solution’s enhanced for the two years remains almost constant (red spots in graph). Analysis like this is easy to in graph). Analysis like this for the two years remains almost constant (red spots 2015 have more fluctuations compared with those in 2016; but overall, the yearly average in 2016; but overall, the yearly 2015 have more fluctuations compared with those track of the new data that will be generated by CME Globex and CME Europe Ltd. To learn more, visit track of the new data that will be generated by CME Globex and http://www.ze.com/the-zema-solutions/. in in October 2015. The settlements point before reaching a maximum of 17.3 Euro/MWh the whole period is about 15 Euro/MWh as of April 2015; but the price increases from that 2015; but the price increases the whole period is about 15 Euro/MWh as of April shaping average and yearly average for years 2015-2016. The minimum future settlement for The minimum future shaping average and yearly average for years 2015-2016. The ZEMA graph shows the Italian natural gas monthly future settlement with monthly future settlement with monthly The ZEMA graph shows the Italian natural gas monthly Using ZEMA’s advanced data collection and analytic capabilities, market participants can easily keep Using ZEMA’s advanced data collection and analytic capabilities, See the original announcement. These contracts are listed on, and subject to, the rules of UK RIE CME Europe Ltd. on, and subject to, the rules of UK RIE CME Europe These contracts are listed CME ClearPort: the following energy futures for trading on CME Globex and clearing submission via submission via on CME Globex and clearing energy futures for trading the following CME Europe Launches Futures Italian Gas Natural (CME) Europe listed Mercantile Exchange 1, 2015, the Chicago Effective February Natural Gas 26

UK Natural Gas Daily Futures UK Natural Gas Calendar Month Futures Transco Leidy Basis Future Transco Leidy Swing Future Transco Leidy Index Future Transco Leidy 4 300L Basis Future Tennessee Zone 4 300L Swing Future Tennessee Zone Index Future Tennessee Zone 4 300L

• • straight through processing on Marex Spectron’s market venue. They are: straight through processing on Marex Spectron’s February 2015 The new contracts are financial and physical cleared products that are available to trade via products that are available The new contracts are financial and physical cleared new contract by arranging three block trades with a total of 75k Therms. new contract by arranging three block trades with the CME Europe’s new monthly UK (NBP) Natural Gas future, ending day two of trading in the Gas future, ending day two of the CME Europe’s new monthly UK (NBP) Natural of the new products’ availability. On 20 January, Marex Spectron executed the first trade of Marex Spectron executed the first of the new products’ availability. On 20 January, The TTF contract was traded for one of Marex Spectron’s major energy clients on the first day major energy clients on the The TTF contract was traded for one of Marex Spectron’s monthly Dutch (TTF) and UK (NBP) Natural Gas futures. monthly Dutch (TTF) and UK (NBP) Natural Gas futures. Effective February 2, 2015, Marex Spectron has executed the first trade of CME Europe’s new executed the first trade of CME Effective February 2, 2015, Marex Spectron has future gas contracts and prices of traded location spreads. future gas contracts and prices of traded location Futures Gas NBP Natural weekend, as well as individual days gas spot contracts. Moreover, it includes prices of traded Moreover, it includes prices weekend, as well as individual days gas spot contracts. CME EuropeMarex TTF Spectron Trades and The PEGAS real-time market data product contains prices of traded within-day, day-ahead, prices of traded within-day, day-ahead, The PEGAS real-time market data product contains See the original announcement. EEX Group, operated by Powernext. EEX Group, operated by traded on PEGAS, as of January 1, 2015. PEGAS is the central natural gas trading platform of platform trading 1, 2015. PEGAS is the central natural gas traded on PEGAS, as of January the exclusive licensor of real-time market data for spot, derivatives, and spread products products real-time market data for spot, derivatives, and spread the exclusive licensor of Exclusive LicensorExclusive PEGAS of become has that it Börse Market Data + Services announced On February 9, 2015, Deutsche Deutsche + Services Börse Data Market Becomes ZEMA collects natural gas records from all over the world and from dozens of different data sources. To receive To from all over the world and from dozens of different data sources. ZEMA collects natural gas records visit http://www.ze.com/book-a-demo/ . a complimentary ZEMA demonstration, See the original announcement. • • • • • • following natural gas futures contracts: natural gas following Effective February 16, 2015, the Intercontinental Exchange (ICE) Futures US listed the US listed (ICE) Futures Exchange Intercontinental 16, 2015, the February Effective ICE Futures US Lists FuturesICE US Futures Gas Natural New Six Natural Gas 27 Frequency Daily Daily Daily Daily

Category ->LPG-> Northwest Europe-> Propane ->LPG-> Northwest Europe-> Propane ->LPG->Mideast Gulf->Propane ->LPG-> Asia-Pacific-> Pro- pane Unit USD/t USD/t USD USD Description Propane Swaps NWE month Propane Swaps NWE quarter Propane CP swap month Propane Far East Index swap month Continuous Forward 1, 2, 3, 4, 5, 6 1, 2, 3 1, 2, 3 1, 2, 3 Price Type 1, 2 1, 2 1, 2 1, 2 Time Stamp 6 6 6 6

Dutch Natural Gas Calendar Month Futures Calendar Month Natural Gas Dutch Dutch Natural Gas Daily Futures Daily Gas Natural Dutch

PA-code PA0002720 PA0002721 PA0002722 PA0002723 February 2015 See the original announcement.

Effective March 31, 2015, Argus is stopping the following price types Effective March 31, 2015, descriptive fields will be removed, see page 45 of Market Data User Guide PDF. removed, see page 45 of Market Data User Guide descriptive fields will be Argus to Discontinue Propane AssessmentsSwap standard CSV data files. For all impacted Market Data categories from which the additional additional the For all impacted Market Data categories from which standard CSV data files. See the original announcement. dpg data file in the \DLPG folder of ftp.argusmedia.com. This will also bring Platts’ North American natural gas Market Data files in line with the the line with North American natural gas Market Data files in This will also bring Platts’ the midpoints introduced in (high and low). These will stop for these series, but and series will be found in the dpgeurope January 2015 will continue beyond March. These delivered on Platts.com (Athena) will be removed. delivered on Platts.com Tp,GD Id,GD Tkr,Rel Del Pd,Del Pd,Del Yr) in North American natural gas Market Data CSV files Data Pd,Del Pd,Del Yr) in North American natural gas Market Tp,GD Id,GD Tkr,Rel Del Natural Gas CSV Gas Natural Files the descriptive fields (Commodity,Region1,Region2,Hub,TOD,Price Effective May 18, 2015, Platts to Discontinue Descriptive Fields in North American February 2, 2015. February are about natural several of which from the Chicago Mercantile Exchange, more than 100 records ZEMA regularly collects at http://www.ze.com/the-zema-solutions/. more about the ZEMA solution gas futures. Learn For all contracts, the front month will be March 2015, and the prompt has been available from available from has been the prompt 2015, and will be March front month contracts, the For all See the original announcement. • • Natural Gas

Argus Discontinues New York Natural Gas Assessments As of February 18, 2015, Argus has stopped the following code in the Argus US Products publication and data module. For FTP subscribers, these changes apply to data in the dhp .csv files in the DUSPR folder on ftp.argusmedia.com. Time Price PA-code Description Unit Category Frequency Stamp Type USD/ ->Spark spread->North PA0002204 2 8 New York gas (USP) Daily mnBtu America->New York Coal New York BTU USD/ ->Spark spread->North PA0002205 2 8 Daily value (USP) mnBtu America->New York Spark spread New USD/ ->Spark spread->North PA0002207 2 8 Daily York natural gas (USP) mnBtu America->New York See the original announcement.

Platts’ Data Source Changes Henry Hub Floor Trading Volumes On December 22, 2014, Platts’ NYMEX end of day data provider Commodity Systems Inc. has implemented a change so floor trading volume represents only pit session trading activity. Prior to this date, volume data for floor trading included trading activity from both floor trading and electronic sessions combined: Floor trading contract Symbol Prefix NYMEX Henry Hub Natgas Floor XNNG Combined trading contract Symbol Prefix NYMEX Henry Hub Natgas Combined XNNC See the original announcement.

February 2015 28 Coal 29

be possible for Platts to analyze the relationship between domestic and seaborne be possible for Platts to analyze the relationship truck freight from Shanxi to Tangshan and Shandong. Using these new assessments, it will Using these new assessments, truck freight from Shanxi to Tangshan and Shandong. Platts and Fenwei also propose to assess four domestic logistic routes, including both rail and logistic routes, including Platts and Fenwei also propose to assess four domestic when applicable on a delivered duty paid Tangshan basis. when applicable on a delivered duty paid Tangshan arbitrage calculation. The assessments will be assessed in yuan per metric ton on an ex-washplant, free on rail, and ton on an ex-washplant, free The assessments will be assessed in yuan per metric an implied consider the publication of metallurgical coal markets, and Platts may therefore semi-soft coking coal assessment (Shandong Semi Soft). semi-soft coking coal assessment (Shandong Semi February 2015 high-fluidity assessment (North China Fat Coal), a PCI coal assessment (Shanxi PCI), and a a PCI coal assessment (Shanxi high-fluidity assessment (North China Fat Coal), See the original announcement. include two premium hard coking coal assessments (Liulin No. 4 and Liulin No. 9), a high-vol (Liulin No. 4 and Liulin No. 9), include two premium hard coking coal assessments specifications in the Chinese domestic spot market. Provisionally, the assessments would Provisionally, the assessments specifications in the Chinese domestic spot market. The proposed assessments are designed to reflect the daily tradable values of a range of coal the daily tradable values of a The proposed assessments are designed to reflect spot market. which will initially include five spot metallurgical coal assessments in the domestic Chinese coal assessments in the domestic which will initially include five spot metallurgical proposing to launch the China Metallurgical Coal Index price assessment series, Index price assessment series, proposing to launch the China Metallurgical Coal

Effective early April 2015, Platts and Shanxi Fenwei Energy Consulting Co. are Effective early April 2015, Platts and Shanxi Fenwei Coal Trader’s daily publishing deadline. Platts to Launch and Fenwei Coal CMCI Met Assessment Series The open interest data will lag by one day due to the fact it becomes available each day after day each lag by one day due to the fact it becomes available The open interest data will data reports on coal. For more information, visit http://www.ze.com/the-zema-solutions/. ZEMA regularly collects nearly 150 . Index table in Platts Coal Trader See the original announcement. as well as the total CME open interest for each contract and all terms, in the daily OTC Broker OTC the daily open interest for each contract and all terms, in as well as the total CME barge, CAPP rail (CSX), PRB 8,800 Btu/lb coal futures contracts as listed by the CME Group, Group, by the CME 8,800 Btu/lb coal futures contracts as listed barge, CAPP rail (CSX), PRB Effective June 26, 2015, Platts will publish the open interest for the front-month CAPP Platts will publish the open interest for the front-month Effective June 26, 2015, Platts to Publish CME Group Open Interest for Coal Coal Platts Publishes Front-Month, Front-Quarter Coal Averages On February 2, 2015, Platts announced that it will publish a daily average of the front-month and front-quarter price assessments for each of the five over-the-counter coal products it currently assesses in the OTC Broker Index table in Platts Coal Trader. For example, on March 5 Platts would publish the average of the April daily assessments published from February 26 through March 5. On the same date, Platts would publish the average of the front-quarter (which will be the third calendar quarter) daily assessments published from February 26 to March 5. The daily front-month and front-quarter averages will show the direction of the underlying prices through the course of the referenced period, providing market participants with more visibility as to the direction of the final monthly settle for both terms. See the original announcement.

ZEMA collects more than 20 different coal records from Platts alone. For a complimentary demo on how ZEMA’s data coverage can be specialized for your company’s needs, visit http://www.ze.com/book-a-demo/.

Argus Discontinues New York BTU Value Coal Assessment As of February 18, 2015, Argus has stopped the following code in the Argus US Products publication and data module. For FTP subscribers, these changes apply to data in the dhp .csv files in the DUSPR folder on ftp.argusmedia.com. Time Price Continuous PA-code Description Unit Category Frequency Stamp Type Forward Coal New York USD/ ->Spark spread->North PA0002205 2 8 0 BTU value Daily mnBtu America->New York (USP) See the original announcement.

Platts to Discontinue Compliance Coal Spread Effective June 26, 2015, Platts will discontinue listing the CAPP 1% vs. compliance coal spread currently listed in the daily OTC Broker Index table in Platts Coal Trader. Due to evolving market conditions, there is no longer a premium for low sulfur Central Appalachia thermal coal, as the spread was envisioned to illustrate. Over-the-counter trades for compliance coal have not been reported since February 2012, when the spread last showed a change. The affected code is CTMM001. Additionally, Platts proposes to stop publishing the second trailing final monthly average for the over-the-counter coal products and the CAPP 1% vs. Compliance Spread listed in the daily OTC Broker Index table in Coal Trader, effective June 26. Platts would like to add in its place content it believes would be more relevant to market participants. See the original announcement.

February 2015 30 Softs and Metals 31

specifications will conform with the prevailing renewable energy Directive 2009/28/EC. specifications will conform with the prevailing renewable No changes will be made to the Platts FOB Rotterdam T2 assessments. All other T2 assessments. All other No changes will be made to the Platts FOB Rotterdam adapt its methodology as necessary to reflect standard spot market trade flows. spot market trade flows. adapt its methodology as necessary to reflect standard February 2015 Platts price database. The new symbol codes will be announced at a later date. new symbol codes will be announced at a later Platts price database. The and domestic biofuel specifications monitor this activity in light of the change to German To learn more, agricultural products, including ethanol. ZEMA’s vast data coverage comprises records on many kinds of visit http://www.ze.com/the-zema-solutions/data-coverage/. futures contract. These assessments will appear in a range of Platts sugar reports, and in the and reports, will appear in a range of Platts sugar futures contract. These assessments to indications. Platts will continue trading activity and assessments for abnormal trading See the original announcement. Platts would maintain a rolling schedule in line with the ICE expiration schedules for each for each rolling schedule in line with the ICE expiration schedules Platts would maintain a review both markets and continue to Platts will monitor the activity and development of front-month contract assessments for both ICE Sugar No. 11 and White Sugar Futures. Futures. for both ICE Sugar No. 11 and White Sugar front-month contract assessments assessments. two assessments and establish two independent each futures’ contract from the date of publication. This builds upon Platts’ existing existing the date of publication. This builds upon Platts’ each futures’ contract from the the existing relationship between T2 assessment. Effective March 9, Platts will decouple The new range of assessments will include the first three contracts listed by the exchange for by the exchange will include the first three contracts listed The new range of assessments Rotterdam as fixed at parity to the FOB Rotterdam T2 German spec assessment is published 16:30 London time. Currently, the existing FOB implementation of the Fuel Quality Directive in Germany. The fossil fuel comparator and greenhouse gas saving reflected will be per the prevailing reflected will be per the prevailing The fossil fuel comparator and greenhouse gas saving comparator, as per the European Union’s Fuel Quality Directive calculation. comparator, as per the European Union’s Fuel Quality will include a minimum greenhouse gas saving of 50% when compared with the fossil fuel will include a minimum greenhouse gas saving of Platts T2 German Assessments Ethanol to Decouple Two German spec ethanol assessments Effective March 9, 2015, Platts FOB Rotterdam T2 See the original announcement. assessments for ICE White Sugar Futures (LIFFE 5) and Sugar No. 11 Futures at Sugar Futures (LIFFE 5) and Sugar No. 11 Futures assessments for ICE White Effective March 30, 2015, Platts will publish an expanded range of daily Effective March 30, 2015, Platts to Launch Futures Sugar Expanded Assessments SOFTS Softs and Metals 32

FIX/FAST and iLink: tag 55-Symbol MDP 3.0 tag 1151 - Security Group (UDS) MY OZ FIX/FAST and iLink: tag 55-Symbol MDP 3.0 tag 1151 - Security Group (Outrights) ML 0O FIX/FAST and iLink: tag 1151-Security Group MDP 3.0: tag 6937-Asset OMD OLD

Product Short-Dated New Crop Soybean Meal and Soybean Oil Options Short-Dated New Crop Soybean Short-Dated Options on New Crop Soybean Meal Futures Short-Dated Options on New Crop Soybean Oil Futures February 2015 ZEMA can help you keep you up to date on more than 100 regular CME reports, including many on softs. To find out how, To CME reports, including many on softs. ZEMA can help you keep you up to date on more than 100 regular book a free demo at http://www.ze.com/book-a-demo/. See the original announcement.

Soybean Oil Options Soybean for following short-dated crop options were listed On February 22, 2015, the CME Launches and Crop Meal Short-Dated Soybean outcry and clearing submission via CME ClearPort: trading on CME Globex, open Softs and Metals 33

FIX/FAST and iLink: tag 55-Symbol MDP 3.0 tag 1151 - Security Group FE FE FE FE FE FE FE FE . FNE FUE FLE FTA FEY FKE FME FCE FIX/FAST and iLink: tag 1151-Security Group MDP 3.0: tag 6937-Asset

March 2015 - December 2015) December 2016) 2015, 2015, March 2015 - September Three non-Consecutive CSOs (March 2015 - July Two Annual CSOs (September 2015 - September 2016 and December 2015 - Two Annual CSOs (September 2015 - September One consecutive CSO (March 2015 - May 2015)

Urea (Granular) FOB US Gulf Future Urea (Granular) FOB US Gulf UAN FOB NOLA Future DAP FOB NOLA Future DAP FOB Tampa Future Urea (Granular) FOB Egypt Future Urea (Prilled Bulk) FOB Yuzhny Future Urea (Granular) FOB Middle East Future Urea (Prilled) FOB China Future Product February 2015 Upon March expiration, the May Non-Consecutive months will be listed for trading and so on. months will be listed for trading Upon March expiration, the May Non-Consecutive • ZEMA collects a wide range of agricultural several reports including data, from data MGEX. learn more about ZEMA’s To visit http://www.ze.com/the-zema-solutions/data-coverage/ coverage, See the original announcement. • • Effective February 1, 2015, the following options on MGEX futures calendar Effective February 1, 2015, the following options spreads (CSOs) were listed for trading on CME Globex: These contracts are listed on, and subject to, the rules of UK RIE CME Europe Ltd. These contracts are listed on, and subject to, the See the original announcement. MGEXNew Spread Options Launched Calendar on CME Globex trading on CME Globex and clearing submission via CME ClearPort: Globex and clearing trading on CME On February 2, 2015, CME Europe listed the following fertilizer cash settled futures for cash settled futures the following fertilizer 2, 2015, CME Europe listed On February CME Europe Lists Fertilizer Settled Cash Futures Softs and Metals 34

No. 1 Soybeans 1607 Contract Corn 1601 Contract No. 2 Soybeans 1601 Contract, Soybean Meal 1601 Contract Soybean Oil 1601 Contract, LLDPE 1601 Contract RBD Palm Olein 1601 Contract, Egg 1601 Contract Egg 1601 Contract Fiberboard 1601 Contract Blockboard 1601 Contract Corn Starch 1601 Contract

ZEMA demonstration. simple or complex analyses and make better decisions. To learn more, book a complimentary To learn more, book a complimentary simple or complex analyses and make better decisions. random price fluctuations. Easily customizable graphs like this can be built in ZEMA to create like this can be built in ZEMA random price fluctuations. Easily customizable graphs by a line without points for corn and soybean in the graph) helps to remove noise from the graph) helps to remove noise by a line without points for corn and soybean in the contracts have high volatility in the same period. Analysis like moving average (represented Analysis like moving average (represented contracts have high volatility in the same period. February 2015 2015-2017, we can see upward trend for future contracts of corn, whereas soybean 2015-2017, we can see upward trend for future soybean, which is now trading at the Dalian Commodity Exchange. For the period Exchange. For the period soybean, which is now trading at the Dalian Commodity March 2015 to November 2017 (CME data). The graph displays monthly prices for corn and graph displays monthly prices for March 2015 to November 2017 (CME data). The The ZEMA graph below shows the future contract for corn and soybean in next three years from for corn and soybean in next three The ZEMA graph below shows the future contract See the original announcement. • • • • • • • • • following contracts: Effective January 19, 2015, the Dalian Commodity Exchange (DCE) has begun trading the trading the Dalian Commodity Exchange (DCE) has begun Effective January 19, 2015, Blockboard, and Corn StarchContracts DCE Lists Corn, Soybean, New Olein, Fiberboard, Palm ZEMA currently collects 11 regular data reports at data extensive coverage Learn alone. on sugar more about ZEMA’s http://www.ze.com/the-zema-solutions/data-coverage/. See the original announcement.

On January 5, 2015, Marex Spectron launched a new service providing access access providing a new service launched Marex Spectron 5, 2015, On January Marex Spectron Launches Broking Sugar Physical London and Paris. London and The new physical broking service is now live and will operate primarily through desks in primarily through desks live and will operate broking service is now The new physical brokerage service in physical agricultural products. in physical agricultural brokerage service to markets for physical sugar. The new service will be offered in conjunction with with in conjunction will be offered new service sugar. The for physical to markets first is Marex Spectron’s Marex Spectron. This which will act as agent for MB Trading, Softs and Metals 35 © Graph created with ZEMA © Graph created

February 2015 extended to include its contracts for Rapeseed and Corn. extended to include its contracts for Rapeseed and contracts. JSE will initially list the Euronext Milling Wheat contract, and this agreement can be Wheat contract, and this agreement contracts. JSE will initially list the Euronext Milling exchange the right to use the settlement prices and brands for the other’s commodities brands for the other’s commodities exchange the right to use the settlement prices and The license agreement signed between the two exchanges is reciprocal, enabling each is reciprocal, enabling The license agreement signed between the two exchanges second fastest-growing region next year, expanding 5.75%. second fastest-growing region next year, expanding See the original announcement. reach into Africa, which according to International Monetary Fund forecasts, will be the world’s be the will to International Monetary Fund forecasts, reach into Africa, which according By partnering with the largest exchange in the region, the agreement also extends Euronext’s Euronext’s extends exchange in the region, the agreement also By partnering with the largest wider audience. global Milling Wheat contract by broadening its international exposure to a to exposure Wheat contract by broadening its international global benchmark Milling contract currently traded on Euronext. The aim of the agreement is to extend access to the to access on Euronext. The aim of the agreement is to extend contract currently traded Stock Exchange (JSE) providing the JSE with the right to list the flagship Milling Wheat Wheat the JSE with the right to list the flagship Milling Stock Exchange (JSE) providing On February 16, 2015, Euronext signed a license agreement with the Johannesburg signed a license agreement with the Johannesburg On February 16, 2015, Euronext Stock Exchange Stock Euronext Wheat Contract Extends Milling to Johannesburg METALS Softs and Metals Platts to Publish Iron Ore Phosphorus Differential Effective April 1, 2015, Platts will begin publishing a daily phosphorus differential used in the normalization process for its iron ore fines assessments. This differential will be reflective of ores within the 60-63.5%-Fe range, in line with the current “per 1% Fe differential.” The differential will be monitored and updated to reflect spot market value. This differential adjustment used in normalization will be expressed in dollars per dry metric ton for every 0.01 percentage point of phosphorus, up to and including levels of 0.12%. Platts will continue to monitor penalties and premiums for phosphorus above this level and outside of the Fe range and continue to publish this information on a case-by-case basis in market commentaries and news stories. Platts is proposing to publish this value in the daily iron ore assessment table in SBB Steel Markets Daily on page 3 and on page MW1105 of PMA and to database the value, making it available in data products under the category SI. 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 http://www.ze.com/the-zema-solutions/.

Argus Launches Gadolinium Oxide Assessment As of March 3, 2015, Argus introduced a new Gadolinium oxide assessment to Argus Rare Earths report and associated data feed. The following data series is available in DRareEarths data module in /DRareEarths folder on ftp.argusmedia.com. Time Price PA-code Description Unit Category Frequency Stamp Type Gadolinium oxide min ->Metals - Non-ferrous-> PA0015714 0 1 USD/t Daily 99.999% Rare Earths->Asia-Pacific fob China Gadolinium oxide min ->Metals - Non-ferrous-> PA0015714 0 2 USD/t Daily 99.999% Rare Earths->Asia-Pacific fob China See the original announcement.

ZEMA Collects more than 25 metals data reports from the Asia region alone. To find out more, book a free demo at http://www.ze.com/book-a-demo/.

February 2015 36 Softs and Metals

NYMEX Lists Gold Kilo Futures for Hong Kong Deliveries Effective January 26, 2015, the New York Mercantile Exchange (NYMEX) listed gold kilo futures to be physically delivered in Hong Kong. The first listed contract month shall be the April 2015 contract. The spot month limit shall be effective at the close of trading on the business day prior to the first day of the delivery month. For example, the spot month limit for the April 2015 contract month shall be effective at the close of trading on March 31, 2015. Spot-Month Contract Single Month All Month Contract Rule Commodity Reporting Limit (In Net Size and Account-ability Account- Name Chapter Code Level Futures Unit Level ability Level Equivalents) Gold Kilo 1 Kilogram 114 GCK 25 6,000 6,000 6,000 Futures Bar The commodity codes are provided for clearing members that file reports pursuant to NYMEX Rule 561.A in a machine-readable format. See the original announcement.

The ZEMA graph below shows average monthly gold prices in years 2012, 2013, and 2014 (LBMA data). The graph clearly demonstrates that the prices have significantly dropped in June 2013 and remained at the low level ever since. Gold prices soared as high as $1,746 USD/toz in October of 2012 and fell as low as $1175 USD/toz in November 2014. NYMEX hopes to complement the existing gold benchmark with its new gold futures contract for the Hong Kong physical gold market. To learn more about the ZEMA solution, book a complimentary demonstration.

© Graph created with ZEMA

February 2015 37 Softs and Metals ICE to Administer the LBMA Gold Price Effective March 2015, Intercontinental Exchange (ICE) and the London Bullion Market Association (LBMA) have launched the new LBMA Gold Price, which replaces the long established London Gold Fix. As announced by the LBMA in November 2014, ICE Benchmark Administration (IBA) has officially become the administrator of the new pricing mechanism. As the administrator for the LBMA Gold Price, IBA will transition to a physically settled, electronic and tradable auction, with the ability to participate in three currencies: USD, EUR, and GBP. Within the process, aggregated gold bids and offers will be updated in real-time with the imbalance calculated and the price updated every 30 seconds. IBA will use ICE’s widely distributed front-end, WebICE, as the technology platform which will allow direct participants, as well as sponsored clients, to manage their orders in the auction in real time via their desktops. See the original announcement.

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

Platts Discontinues Platts Tubular Market Data File Effective January 1, 2015, Platts has discontinued its monthly North American pipe and tube markets data publication, Platts Tubular Market Report data file. The publication has been discontinued due to the reconfiguration of other Platts publications and data reports that provides subscribers with similar information going forward. As an alternative, subscribers can receive pipe and tube market data in the Platts Steel Data & Analysis product. Specifically, this data is included in the Imports 1-4 and Exports 1-3 reports. In addition, pipe and tube data is included in the trend analyzer, also part of a Steel Data & Analysis subscription. See the original announcement.

February 2015 38 Softs and Metals

CME Changes FIX Tags for Metals Futures On February 23, 2015, CME Group changed the values in the following FIX tags for Metals futures: • tag 55-Symbol for FIX/FAST, and • tag 1151-SecurityGroup for MDP 3.0 Product CodeFIX/FAST Current State FIX/FAST New State FIX/FAST and and iLink: tag 1151- and iLink: tag 55-Symbol iLink: tag 55-Symbol Product Security Group MDP 3.0: MDP 3.0 tag 1151 - MDP 3.0 tag 1151 - tag 6937-Asset Security Group Security Group E-micro Gold futures MGC QO GC and calendar spreads miNY Gold futures and QO QO GC calendar spreads E-mini Copper futures QC QC HG and calendar spreads miNY Silver futures QI QI SI and calendar spreads See the original announcement.

LME Extends Publication of Live Forward Price Curves On January 20, 2015, The London Metal Exchange (LME) has extended its live forward price curves for each metal as part of its commitment to further enhance the transparency of the price discovery process following last year’s review of the Ring, the Exchange’s open outcry trading platform. The forward price curves, which were previously published for the Ring’s afternoon “kerb” trading session only, now cover all trading times in the Ring. In addition to the new price information, the LME is providing extra granularity by publishing monthly prompt dates between three months and one year forward. See the original announcement.

February 2015 39 Finance 40

Tag 623- LeqRatioQty Front Leg: 3 Back Leg: 2

Tag 762-Security- SubType RT FIX/FAST and iLink: tag 55-Symbol MDP 3.0 tag 1151 - Security Group ZB FIX/FAST and iLink: tag 1151-Security Group MDP 3.0: tag 6937-Asset ZBXH5-ZBXM5 Front leg – deferred leg (150.0 – 165.0) = -15.0

• • ZBM5 is priced at 165.0 (1650) at -15.0 (-1500) The Reduced Tick calendar spread ZBH5-ZBM5 trades ZBH5 is priced at 150.0 (1500)

Product Treasury Bond Reduced-Tick Ratio Calendar Spread February 2015

• • • assignment and spread pricing differences are outlined in the following scenarios: assignment and spread pricing differences are outlined The ratio spread is listed alongside the current reduced tick calendar spread. Trade leg tick calendar spread. Trade The ratio spread is listed alongside the current reduced This spread will not be implied and will not be SLEDS eligible. This spread will not be implied and will not be SLEDS as defined below. ratio of 3:2. The details of the spread are included in the Security Definition message in the Security Definition message ratio of 3:2. The details of the spread are included This spread is a reduced tick calendar spread with the usual quarter-32nd tick, but with a leg the usual quarter-32nd tick, but This spread is a reduced tick calendar spread with On February 17, 2015, due to unique changes in the deliverable basket affecting to unique changes in the deliverable basket On February 17, 2015, due Globex. ratio calendar spread for trading on CME (CME) listed a new reduced-tick calculations for third-party Zafranet data for sugar prices in Mexico. calculations for third-party Spread forCME Introduces Treasury Calendar Bond Futures Ratio Exchange Mercantile Treasury Bond (ZB) calendar roll, the Chicago the upcoming March-June This assessment would be made basis 14:15 Houston time, and be used as part of as part made basis 14:15 Houston time, and be used This assessment would be See the original announcement. currency assessment to complement its global sugar pricing coverage. currency assessment to Also on February 12, Platts declared its intent to launch a daily US Dollar-Mexican Peso Peso declared its intent to launch a daily US Dollar-Mexican Also on February 12, Platts See the original announcement.

On February 12, 2015, Platts announced that it will be introducing a daily US introducing it will be that Platts announced 12, 2015, On February Plattsto Launch USD-INR New Forex Assessment physical commodity assessments. physical commodity add to Platts’ existing portfolio of currency assessments published to support a range of Platts to support a range assessments published existing portfolio of currency add to Platts’ calculations for third-party NCDEX data for sugar prices in India. These assessments would These assessments for sugar prices in India. for third-party NCDEX data calculations The assessment would be made basis 16:30 Singapore time, and be used as part of and be used as part 16:30 Singapore time, would be made basis The assessment Dollar-Indian Rupee currency assessment to complement its global sugar pricing coverage. coverage. sugar pricing its global to complement currency assessment Rupee Dollar-Indian Finance 41 FIX/FAST and iLink: tag 55-Symbol MDP 3.0 tag 1151 - Security Group DS DS DS DS

FIX/FAST and iLink: tag 55-Symbol MDP 3.0 tag 1151 - Security Group ZY ZN EU2 EU5 E10 DS2 FIX/FAST and iLink: tag 1151-Security Group MDP 3.0: tag 6937-Asset FIX/FAST and iLink: tag 1151-Security Group MDP 3.0: tag 6937-Asset B2U N2U (Front leg*3)-(deferred leg*2) leg*3)-(deferred (Front = 120.0 ((150.0*3)-(165.0*2))

• • and 30-Year USD Interest Rate Swap and 30-Year USD Interest A different coupon rate than the existing First-generation 10-Year USD Interest Rate Swap Swap Rate the existing First-generation 10-Year USD Interest A different coupon rate than March 2015 quarterly expiration, and March 2015 quarterly expiration, The Reduced-Tick Ratio calendar spread ZBXH5-ZBXM5) trades at 120.0 (120000) at 120.0 trades ZBXH5-ZBXM5) spread calendar Ratio Reduced-Tick The

2-Year Deliverable Euro Interest Rate Swap Futures 5-Year Deliverable Euro Interest Rate Swap Futures 10-Year Deliverable Euro Interest Rate Swap Futures 2-Year Deliverable US Dollar Interest Rate Swap Futures Product Product Second-generation 30-Year USD Deliverable Rate Swap Futures Second-generation 10-Year USD Deliverable Rate Swap Futures February 2015 CME ClearPort for CME Clearing Europe (CMECE), in Q1 2015. CME ClearPort for CME Clearing Europe (CMECE), Denominated Deliverable swap futures for trading on CME Globex and clearing submission via on CME Globex and clearing submission Denominated Deliverable swap futures for trading Deliverable Swap FuturesDeliverable Swap US Dollar it will list the following Euro and On January 26, 2015, CME Europe announced that See the original announcement. CME Europe Lists Euro Dollar Denominated and US These contracts were listed with, and subject to, the rules and regulations of CBOT. These contracts were listed with, and subject to, • • be listed for: will futures and 30-Year USD Deliverable Rate Swap The second-generation 10-Year Deliverable Rate Swap futures were listed for trading on CME Globex. Deliverable Rate Swap futures Interest Rate Swap Futures Interest Swap Rate 10-Year and 30-Year USD Effective February 8, 2015, the Second-generation CME Globex ListsCME Globex Second Generation Deliverable ZEMA’s sophisticated market data management tools collect hundreds of financial data reports, including reports from data reports, including tools collect hundreds of financial market data management ZEMA’s sophisticated demonstration a complimentary ZEMA own library of financial data, book you can begin building your CME. To learn how at http://www.ze.com/book-a-demo/. See the original announcement.

• Finance 42 FIX/FAST and iLink: tagFIX/FAST MDP 3.055-Symbol - Securitytag 1151 Group DS DS DS

DS5 D10 D30 FIX/FAST and iLink: tagFIX/FAST Group 1151-Security tag 6937-Asset MDP 3.0: © Graph created with ZEMA © Graph created with ZEMA 5-Year Deliverable US Dollar Interest Rate Swap US Dollar Interest Rate 5-Year Deliverable Futures Swap US Dollar Interest Rate 10-Year Deliverable Futures Swap US Dollar Interest Rate 30-Year Deliverable Futures Product February 2015 solution, please book a complimentary demonstration. solution, please book a complimentary that the price took a dive from September to October 2014. To learn more about the ZEMA the about from September to October 2014. To learn more that the price took a dive futures see a much higher volatility compared to the EURO ones. In both graphs, we can see we can graphs, volatility compared to the EURO ones. In both futures see a much higher and ten years interest rate swap futures in the specified market. The USD interest rate swap rate interest swap futures in the specified market. The USD and ten years interest rate respectively. In each graph, there are three curves: those that represent two years, five years, five years, there are three curves: those that represent two respectively. In each graph, Below are two ZEMA graphs showing the EURO and USD interest rate swap futures, futures, showing the EURO and USD interest rate swap Below are two ZEMA graphs ZEMA, ZE’s data management solution, excels at displaying time-series data in charts, graphs, forward curves, forward excels at displaying time-series data in charts, graphs, ZEMA, ZE’s data management solution, visit information, derivatives data from a wide range of sources. For further and more. ZEMA also collects financial http://www.ze.com/the-zema-suite/. See the original announcement. These contracts were listed on, and subject to, the rules of UK RIE CME Europe Ltd. on, and subject to, the rules of UK RIE CME Europe These contracts were listed Finance 43 Contract Name Futures (5 Weeklies listed) Mid-Curve Options on Euribor Weekly One Year listed) Sterling Futures (5 Weeklies Mid-Curve Options on Short Weekly One Year Options on Euribor Futures (5 Weeklies listed) Weekly Two Year Mid-Curve Options on Short Sterling Futures (5 Weeklies listed) Weekly Two Year Mid-Curve on Euribor Futures (4 Serials, 4 Quarterlies listed) Five Year Mid-Curve Options on Short Sterling Futures (4 Serials, 4 Quarterlies listed) Five Year Mid-Curve Options

Fourth month (’M4’) versus the fifth month (‘M5’) Spread (’M4 - M5’). Fourth month (’M4’) versus the fifth month (‘M5’) (’M5 - M6‘). Fifth month (’M5’) versus the sixth month (’M6’) Spread Third month (’M3’) versus the fourth month (’M4’) Spread (’M3 - M4‘). Third month (’M3’) versus the fourth month (’M4’)

Physical Code KW1 MW1 KW2 MW2 K5 M5 February 2015 • • • nine new spread contracts available for trading in Indian Rupee futures: nine new spread contracts available for trading in Plc shares were made available on WebICE and ICE Block on 23 December 2014. Plc shares were made available on WebICE and ICE SpreadDGCX Adds New Contracts in Indian Rupee Futures Exchange (DGCX) listed Effective February 26, 2015, the Dubai Gold & Commodities Standard Individual Equity Option Contracts based in Indivior Plc and Reckitt Benckiser Group in Indivior Plc and Reckitt Benckiser Standard Individual Equity Option Contracts based See the original announcement. The minimum volume threshold for Block Trades in these contracts is set at 1 lot. The minimum volume threshold for Block Trades Sections KKKKK, LLLLL, UUUUU and VVVVV of the ICE Futures Europe Regulations. Sections KKKKK, LLLLL, UUUUU and VVVVV of the Benckiser Group Plc shares for trading on ICE Block under the terms of the Contract Rules under the terms of the Contract Benckiser Group Plc shares for trading on ICE Block flexible Single Stock Futures (“flexible SSF”) contracts based on Indivior Plc and Reckitt based on Indivior Plc and Reckitt flexible Single Stock Futures (“flexible SSF”) contracts Single Stock Futures ContractsSingle Stock and Equity Option (“flexible IEO”) On January 26, 2015, ICE launched flexible Individual ICE Introduces Flexible Individual Equity Option and The products will be part of the STIR Option Designated Market Maker Scheme. The products will be part data, visit and analyze records. To learn more about how ZEMA can collect, aggregate, ZEMA collects more than 100 ICE . http://www.ze.com/the-zema-solutions/ platform and cleared by ICE Clear Europe who will act as a central counterparty to all trades. all to ICE Clear Europe who will act as a central counterparty platform and cleared by See the original announcement. These ICE Futures Europe Option Contracts will be admitted to trading on the ICE trading trading the ICE Option Contracts will be admitted to trading on These ICE Futures Europe Contracts. The additional contracts are detailed in the following table: detailed in the following additional contracts are Contracts. The launched six new mid-curve option products on the Euribor and Short Sterling Futures Sterling Futures and Short on the Euribor products option six new mid-curve launched Effective February 16, 2015, the Intercontinental Exchange (ICE) Futures Europe Europe (ICE) Futures Exchange Intercontinental 16, 2015, the February Effective ICE Introduces Additional EuriborShort and Options Sterling Finance 44

UBS ETF – MSCI EMU Hedged USD UCITS ETF (USD) A-dis equity index ETF LU0937835576 0.33 percent distributing MSCI EMU 100% Hedged to USD Total Return Net Ossiam Shiller Barclays Cape Europe Sector Value TR - UCITS ETF Ossiam Shiller Barclays Cape equity index ETF LU1079842321 0.65 percent accumulating Shiller Barclays CAPE Europe Sector Value Net TR Index Seventh month (’M7’) versus the eighth month (‘M8’) Spread (’M7 - M8’). (’M7 (‘M8’) Spread eighth month versus the month (’M7’) Seventh (’M8 - M9‘). (’M9’) Spread ninth month versus the month (’M8’) Eighth (’M9 - M10’). (‘M10’) Spread tenth month versus the (’M9’) Ninth month (’M10 - M11‘). month (’M11’) Spread (’M10’) versus the eleventh Tenth month (’M11 - M12’). Month (‘M12’) Spread (’M11’) versus the twelfth Eleventh month Sixth month (’M6’) versus the seventh month (’M7’) Spread (’M6 - M7‘). - M7‘). (’M6 Spread (’M7’) month seventh the versus (’M6’) month Sixth ETF Name Asset class ISIN Total expense ratio Distribution policy Benchmark Asset class ISIN Total expense ratio Distribution policy Benchmark ETF Name February 2015 markets in the European Monetary Union (EMU) in US dollars and to benefit at the same time in US dollars and to benefit at the markets in the European Monetary Union (EMU) This ETF gives investors the opportunity for the first time to track the performance of the equity time to track the performance This ETF gives investors the opportunity for the first Effective February 12, 2015, a new exchange-listed equity index fund issued by Effective February 12, 2015, a new exchange-listed the ratio of the share price to average inflation-adjusted earnings over the past ten years. earnings over the past ten the ratio of the share price to average inflation-adjusted See the original announcement. UBS Lists AG ETF New on Xetra and 12-month momentum. CAPE stands for Cyclically Adjusted Price-Earnings and calculates Adjusted Price-Earnings and and 12-month momentum. CAPE stands for Cyclically undervalued European sectors. The sectors are selected on a monthly basis, using CAPE ratio on a monthly basis, using undervalued European sectors. The sectors are selected The new Ossiam ETF enables investors to participate in the performance of the four most in the performance of the four The new Ossiam ETF enables investors to participate UBS AG has become tradable in Deutsche Börse’s XTF segment on Xetra: UBS AG has become tradable in Deutsche Börse’s XTF segment on Xetra. On February 16, 2015, Ossiam issued a new equity index fund in Deutsche Börse’s Börse’s issued a new equity index fund in Deutsche On February 16, 2015, Ossiam ZEMA collects regular reports from the National Stock Exchange of India. To find out more about ZEMA’s extensive data out more about ZEMA’s Stock Exchange of India. To find reports from the National ZEMA collects regular . coverage, visit http://www.ze.com/the-zema-solutions/data-coverage/ Ossiam Launches Smart New Beta ETF on Xetra See the original announcement. • • • • • • Finance 45

February 2015 based on a methodology which incorporates both algorithmic and human analysis. based on a methodology which incorporates both customers will have access to Interactive Data’s Continuous Fixed Income Evaluated Prices, Continuous Fixed Income Evaluated customers will have access to Interactive Data’s by booking more 50 ICAP reports on a regular basis. Learn Stay current on ICAP data with ZEMA which collects more than a free demo at http://www.ze.com/book-a-demo/. partnership with third-party pricing and reference data provider, Interactive Data. Scrapbook data provider, Interactive Data. partnership with third-party pricing and reference See the original announcement. Having been launched in February, the e-solution is made possible through a strategic is made possible through a strategic Having been launched in February, the e-solution Europe Limited leveraging the ICAP e-Commerce team. Europe Limited leveraging the ICAP e-Commerce ICAP’s BrokerTec MTF (Multilateral Trading Facility) under the regulated entity of BrokerTec under the regulated entity of BrokerTec ICAP’s BrokerTec MTF (Multilateral Trading Facility) session-based e-solution for the corporate bond market. The service will be operated by market. The service will be operated session-based e-solution for the corporate bond Treasury note futures contracts which are related to the underlying bonds. Treasury note futures contracts Corporate Bond Market launching Scrapbook, an anonymous, On January 26, 2015, ICAP announced that it is performance of holding US Treasury bonds and systematically writing call options on 10yr US on options Treasury bonds and systematically writing call performance of holding US ICAP e-Commerce Launches Scrapbook Service for the platform, BrokerTec. A buy-write option strategy, the ICAP BCC Index measures the the option strategy, the ICAP BCC Index measures platform, BrokerTec. A buy-write See the original announcement. IIS three years ago using trade-backed data from ICAP’s leading electronic fixed income income fixed trade-backed data from ICAP’s leading electronic IIS three years ago using The ICAP BCC Index is based on the ICAP US Treasury 5-10 Year Maturity Index, developed by developed Index, on the ICAP US Treasury 5-10 Year Maturity The ICAP BCC Index is based product on the index is launched. strategy index, it represents the enhanced income received on physical bond holdings when a holdings the enhanced income received on physical bond strategy index, it represents of ICAP, has launched the ICAP Bond Correlated Call (BCC) US Treasury Index. A fixed income fixed income A ICAP Bond Correlated Call (BCC) US Treasury Index. of ICAP, has launched the Treasury Index division ICAP Information Services (IIS), the information Effective February 2, 2015, ZEMA presently collects information from Deutsche Börse about derivatives products. To learn more about how ZEMA To learn more about Börse about derivatives products. collects information from Deutsche ZEMA presently . http://www.ze.com/the-zema-suite/ Börse market data, visit can leverage Deutsche ICAP Launches the ICAP Bond Correlated US Call Ireland, Italy, the Netherlands, Austria, Portugal, and Spain. Austria, Portugal, Italy, the Netherlands, Ireland, See the original announcement. 238 stock corporations from the following ten countries: Belgium, Germany, Finland, France, France, Germany, Finland, Belgium, ten countries: following from the corporations 238 stock from any appreciation of the US dollar against the euro. The index currently comprises comprises currently index The the euro. against US dollar of the appreciation any from Finance TAIFEX Launches Two New EFT Futures On February 2, 2015, the Taiwan Futures Exchange (TAIFEX) launched two new ETF futures associated with China’s stock indexes, adding to its current three ETF futures offerings that began trading on October 6, 2014. With their underlying ETFs’ high liquidity, TAIFEX added two new ETF Futures: • Yuanta/P-shares SSE50 ETF Futures • Fuh Hwa CSI300 A Shares ETF (FH CSI300) Futures Following the promising growth of the previously launched ETF futures, W.I.S.E. Yuanta/P-shares CSI300 ETF futures and Fubon SSE180 ETF Futures, the two new ETF futures also aim to closely track the performance of two China stock indices – the SSE50 Index (Taiwan Stock Exchange code: 006206) and the CSI300 Index (stock code: 006207), respectively. See the original announcement.

Source Launches Two New Equity Index ETFs on Xetra As of January 26, 2015, a new equity index fund from the ETF offering issued by Source has been tradable on Xetra in Deutsche Börse’s XTF segment: ETF Name Source Goldman Sachs Equity Factor Europe UCITS ETF Asset class equity index ETF ISIN DE000A1161M1 Total expense ratio 0.55 percent Distribution policy accumulating Benchmark Goldman Sachs Equity Factor Index Europe NTR Index EUR The Source Goldman Sachs Equity Factor Europe UCITS ETF enables investors to participate in a strategy approach based on the following five stock-picking factors: size, value, momentum, quality, and a low beta. This strategy aims for outperformance compared to traditional indexes weighted by market capitalization. Additionally, on January 20, 2015, Source issued a new equity index fund from the ETF offering also tradable in the XTF segment on Xetra: ETF Name Source R Equal-Risk European Equity UCITS ETF Asset class equity index ETF ISIN DE000A12D253 Total expense ratio 0.48 percent Distribution policy accumulating Benchmark R Risk-Based European Equity TRN Index

February 2015 46 The Source R Equal-Risk European Equity UCITS ETF allows investors to participate in a Finance risk-based strategy approach, which focuses equity selection on the biggest European large-cap companies with sufficient trading liquidity. Index weighting is based on the equally-weighted risk contribution (ERC) model, which takes the two risk factors volatility and correlation into account. See the original announcement.

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CFTC Issues Order of Registration for Bursa Malaysia Derivatives Berhad On January 22, 2015, the US Commodity Futures Trading Commission (CFTC) announced that is has issued an Order of Registration to Bursa Malaysia Derivatives Berhad (BMD), a Foreign Board of Trade located in Kuala Lumpur, Malaysia. Under the Order, BMD is permitted to provide its identified members or other participants located in the US with direct access to its electronic order entry and trade matching system to trade agricultural commodity, interest rate and security index futures, and option contracts. The CFTC issued the Order in accordance with Part 48 of the its regulations, which provides that such an Order may be issued to a foreign board of trade that possesses, among other things, the attributes of an established, organized exchange and that is subject to continued oversight by a regulator that provides comprehensive supervision and regulation that is comparable to the supervision and regulation exercised by the CFTC. BMD submitted an application for registration that included, among other things, representations that its regulatory regime under its regulatory authority, the Malaysian Securities Commission, satisfies the requirements for registration in Commission regulation 48.7. See the original announcement.

TickSmith Launches Chi-X Canada Historical Market Data Portal On January 22, 2015, TickSmith Corp. announced that it will now offer a Chi-X Canada ATS and CX2 Canada ATS historical market data and analytics web portal. The web portal will allow users to access Chi-X Canada historical market data; to create user accounts; to access sample data and related documentation; and to subscribe to historical data services and reports. The portal delivers full access to book data as published by Chi-X Canada as well as formatted content such as top of book, 1 second bars and 1 minute bars. Reports on trading activity are also available; the interface supplies various options to visualize and download content. See the original announcement.

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February 2015 47 Finance Amundi Launches Two New Bond Index ETFs on Xetra As of January 20, 2015, two new exchange-listed bond index funds issued by Amundi have been tradable in Deutsche Börse’s XTF segment.

Name Amundi Govt Bond Lowest Rated EuroMTS Investment Grade 1-3 UCITS ETF Asset class bond ETF ISIN FR0011807015 Total expense ratio 0.14 percent Distribution policy accumulating Benchmark EuroMTS Lowest Rated Investment Grade Government Capped 1-3 Index The Amundi Govt Bond Lowest Rated EuroMTS Investment Grade 1-3 UCITS ETF provides investors with access to the performance of government bonds issued by euro-area countries with terms of one to three years. The bonds must have a double-digit rating below “AAA”.

Name Amundi ETF Floating Rate Euro Corporate 1-3 UCITS ETF Asset class bond ETF ISIN FR0012005734 Total expense ratio 0.18 percent Distribution policy accumulating Benchmark Markit iBoxx EUR FRN IG 1-3 Index The underlying index, Amundi ETF Floating Rate Euro Corporate 1-3 UCITS ETF, tracks the performance of corporate bonds with a variable coupon, or floater. These bonds are investment grade bonds denominated in euros with a term of between one and three years. See the original announcement.

CME Group and GFI Group Terminate Merger Agreement On January 30, 2015, CME Group Inc. and GFI Group Inc. announced that they have each determined to terminate their previously announced merger agreement following a special meeting of GFI shareholders. Results from the GFI shareholder meeting indicate that GFI shareholders did not approve the proposed merger. As a result, the parties each determined that terminating the merger agreement and related transactions was in the best interest of their respective companies and shareholders at this time. The related merger agreement by and among CME and Jersey Partners Inc. and their affiliates and purchase agreement by and among GFI Brokers Holdco Ltd., CME, Jersey Partners Inc. and their affiliates, were also terminated. See the original announcement. February 2015 48 Finance DGCX Suspends Existing Spread Contracts in Indian Rupee Futures On February 26, 2015, DGCX delisted the following six spread contracts in Indian Rupee Futures: • First month (’M1’) versus the sixth month (’M6’) Spread (’M1 - M6‘). • First month (’M1’) versus the ninth month (‘M9’) Spread (’M1 - M9’). • First month (’M1’) versus the twelfth month (’M12’) Spread (’M1 - M12‘). • Third month (’M3’) versus the sixth Month (‘M6’) Spread (’M3 - M6’). • Third month (’M3’) versus the twelfth month (’M12’) Spread (’M3 - M12‘). • Sixth month (’M6’) versus the twelfth Month (‘M12’) Spread (’M6 - M12’). See the original announcement.

ICAP Partners with Wind Information Co. to Provide Data to the Chinese Market On January 27, 2015, ICAP announced that ICAP IIS, the information division of ICAP, has partnered with Wind Information Co., Ltd (Wind Info), a provider of financial data, to provide offshore Chinese renminbi (CNH) and US Treasury data to the Chinese market. As a result of the partnership, Wind Info’s clients that include securities, fund management, investment and insurance companies, banks, financial research institutions and regulatory committees, will have access to offshore market data for the first time. Clients will be able to access USD/CNH Fwd, USD/CNH Spot, USD/CNY NDF, US Treasury EOD data via Wind Financial Terminals (WFT), 24 hours a day, seven days a week. See the original announcement.

TOCOM Granted Registration as Foreign Board of Trade by CFTC On January 21, 2015, the Tokyo Commodity Exchange, Inc. (TOCOM) announced that CFTC has issued an Order granting TOCOM’s application for registration as a Foreign Board of Trade (FBOT) under the US Commodity Exchange Act on January 20. FBOT registration permits TOCOM to provide its Members and market participants located in the United States with direct access to its electronic order entry and trade matching system. A foreign board of trade registered with the CFTC must demonstrate that it meets regulatory requirements comparable to those required of US futures exchanges. Further, the CFTC must determine that the foreign board of trade’s regulatory authorities support and enforce regulatory objectives that are substantially equivalent to the CFTC’s objectives, in particular, with respect to market integrity, customer protection, clearing and settlement and the enforcement of the rules of the foreign board of trade and its clearing organization. See the original announcement.

February 2015 49 Finance Eurex Authorized to Launch Eurex Clearing Asia On January 20, 2015, Deutsche Börse Group announced that it has received “in-principle” regulatory clearance from the Monetary Authority of Singapore (MAS) to set up Eurex Clearing Asia, a clearing house based in Singapore. The new clearing house of Deutsche Börse Group is an integral part of its new trading and clearing offering for investors during Asian trading hours and is expected to commence operations in 2016. Initially, Eurex Clearing Asia will clear selected European benchmark derivatives listed at Eurex Exchange which are traded during Asian market hours. The range of products cleared will subsequently be extended to include listed derivatives based on Asian underlying assets. Deutsche Börse Group will also seek recognition as a third-country central counterparty with the European Securities and Markets Authority (ESMA) in Europe for Eurex Clearing Asia. After approval, the Asian clearing services will also be accessible to market participants based in the European Union. Deutsche Börse Group will combine and market all the services of its Eurex derivatives arm in Asia under the new brand “Eurex Asia.” Eurex Asia’s goal is to offer new trading opportunities, third-party clearing services, and improved post-trade efficiency across the Asian time zone. See the original announcement.

CME Amends Product Titles of Six CME FX Futures and Options On February 3, 2015, CME amended the product titles of six FX futures and options contracts as described below: Rulebook Old Official Product Clearing/ Globex New New Official Product Name Chapter Name PRS Code Code Abbreviation Euro/Czech Koruna Chapter Czech Koruna/Euro (EUR/CZK) Cross Rate K/ECZ ECK CZK/EUR 315 (CZK/EUR) Cross Rate Futures Futures Options on Euro/Czech Options on Czech Koruna/ Chapter ECZ Koruna (EUR/CZK) K/K CZK/EUR Euro (CZK/EUR) Cross Rate 315A Cross Rate Futures Futures Euro/Hungarian Forint Hungarian Forint/Euro Chapter (EUR/HUF) Cross Rate R/EHU EHF HUF/EUR (HUF/EUR) Cross 316 Futures Rate Futures Options on Euro/ Options on Hungarian Forint/ Chapter Hungarian Forint R/R EHU HUF/EUR Euro (HUF/EUR) Cross Rate 316A (EUR/HUF) Cross Rate Futures Futures Chapter Euro/Polish Zloty (EUR/ Polish Zloty/Euro (PLN/EUR) Z/EPL EPZ PLN/EUR 317 PLN) Cross Rate Futures Cross Rate Futures

February 2015 50 Finance Rulebook Old Official Product Clearing/ Globex New New Official Product Name Chapter Name PRS Code Code Abbreviation Options on Euro/Polish Chapter Options on Polish Zloty/Euro Zloty (EUR/ PLN) Cross Z/Z EPL PLN/EUR 317A (PLN/EUR) Cross Rate Futures Rate Futures Also at this time, the Exchange implemented non-substantive amendments to the Position Limit, Position Accountability and Reportable Level Table located in the Interpretations & Special Notices Section of Chapter 5 of the CME Rulebook which were stylistic in nature. It is important to note that the title changes and all related amendments are administrative in nature and, in no manner, impact the structure of the contracts or related contracts. See the original announcement.

IBA Introduces New Calculation Methodology for ISDAFIX As of February 16, 2015, Intercontinental Exchange Benchmark Administration (IBA) will introduce a new calculation methodology for ISDAFIX. ISDAFIX is a global benchmark for interest rate swaps. It represents the average mid-market swap rates for three major currencies: Euro (EUR), British pound (GBP), and US dollar (USD), at selected maturities on a daily basis. Market participants use ISDAFIX to price and settle their derivatives contracts and as a reference rate for floating rate bonds. The new calculation will determine the mid-price of where an order of Standard Market Size1 would be filled across the most liquid, electronic, multilateral trading venues and will use the best prices available on these regulated trading venues at the relevant times in the respective currencies and tenors. The new methodology calculated from tradable quotes is designed to align ISDAFIX with the principles for financial benchmarks published by the International Organization of Securities Commissions (IOSCO) in 2013, which were subsequently endorsed by the G20 and by the Financial Stability Board. See the original announcement.

February 2015 51 Weather and Emissions 52 © Graph created with ZEMA

Cross State Air Pollution TR NOx Annual Allowance Future Air Pollution TR NOx Annual Cross State Season Allowance Future Air Pollution TR NOx Ozone Cross State 1 Allowance Future Air Pollution TR SO2 Group Cross State 2 Allowance Future Air Pollution TR SO2 Group Cross State Energy Certificate Future New Jersey Solar Renewable Certificates Class 1 Future PJM Tri-Qualified Energy Certificate Future Massachusetts Solar Renewable REC Class 1 Vintage Future Massachusetts Compliance REC Class 1 Vintage Future New Jersey Compliance REC Class 1 Vintage Future Connecticut Compliance

ZEMA demonstration. learn more, book a complimentary through ZEMA, with advanced built-in formulas. To declined to as low as 163 tons in March 2013. Such trend analysis can be easily performed trend analysis can be easily declined to as low as 163 tons in March 2013. Such peaked at 2,500 tons in March 2012 and drastically dropped since December 2012, which dropped since December 2012, peaked at 2,500 tons in March 2012 and drastically between January 2012 and June 2014 (EPA data) for Houston, Texas. The total emissions for Houston, Texas. The total emissions between January 2012 and June 2014 (EPA data) The ZEMA graph below shows the total greenhouse emissions (CO2, SO2, and NOx) emissions (CO2, SO2, and NOx) The ZEMA graph below shows the total greenhouse ZEMA aggregates more than 40 data reports regarding emissions from around the world. To learn more about ZEMA’s more data reports regarding emissions from around the world. To learn ZEMA aggregates more than 40 vast data library, visit http://www.ze.com/the-zema-solutions/data-coverage/. See the original announcement. • • • • • • • • • • new physical environment futures: new physical On February 16, 2015, the Intercontinental Exchange (ICE) Futures US launched the following following the US launched Futures Exchange (ICE) the Intercontinental 16, 2015, On February and Compliance Futures Lists ICE Futures US Solar, Air Pollution Allowance, February 2015 Weather and Emissions Alternext Lists Oceasoft Sensor Technology Developer On January 28, 2015, EnterNext, the Euronext subsidiary for small- and medium-sized companies, announced the listing of Oceasoft, developer of connected sensors, on Alternext in Paris. Based in Montpellier in southern France, Oceasoft designs, calibrates, and markets smart wireless sensors for monitoring physical parameters such as temperature, humidity, differential pressure and chemical components for life science, agri-business, and environmental sectors. Oceasoft (ticker code: ALOCA) was listed on Alternext in Paris through the admission to trading of the 2,854,334 shares making up its equity, including 958,334 new shares issued under a Global Offering that included full exercise of the extension clause and partial exercise of the over-allocation option. The admission and issue price of Oceasoft shares was set at €9.00 per share, in the middle of the proposed range. Market capitalization was €25.7 million on the day of listing, and the transaction raised a total of €8.6 million. See the original announcement.

Platts Discontinues Clean Air Interstate Rule Allowance Assessments Effective March 2, 2015, Platts discontinued its daily assessments for Clean Air Interstate Rule (CAIR) allowances for each year 2014 and 2015 created by the Environmental Protection Agency. CAIR allowances for 2015 (Platts symbol EDSO215) were discontinued on January 20, 2015, while CAIR allowances for 2014 (Platts symbol EDSO214) were discontinued on March 2 with the last daily assessment published on February 27. These assessments were discontinued following a return to relevancy of the federal emissions program due to the lifting of a stay by the US Court of Appeals for the District of Colombia Circuit on the US Environmental Protection Agency’s Cross State Air Pollution Rule (CSAPR) in October 2014. The assessments appeared daily in Coal Trader and Megawatt Daily. See the original announcement.

February 2015 53 Weather and Emissions

Argus Discontinues US NOx Codes in Argus Air Daily Effective February 27, 2015, Argus has stopped publishing the following codes in Argus Air Daily. These changes apply to the data files in the dusem data files in the \DADR folder on ftp.argusmedia.com. Time Price Continuous PA-code Description Unit Category Frequency Stamp Type Forward NOx US annual 1, 2, PA0004699 21 0 assessments for USD/st ->Emissions->NOx Daily 8 year 1, 2, NOx US annual PA0005200 21 0 USD/st ->Emissions->NOx Weekly 8 weekly index 1, 2, NOx US annual PA0005201 21 0 USD/st ->Emissions->NOx Monthly 8 monthly index See the original announcement.

AccuWeather Acquires WeatherBank Effective January 26, 2015, AccuWeather Inc. announced that it has acquired WeatherBank Inc., an integrated meteorology company. WeatherBank provides comprehensive weather databases, patented weather technology, and specialized programming and consulting services across major industries and leading businesses. AccuWeather’s commercial services company, AccuWeather Enterprise Solutions Inc. (AES), will integrate WeatherBank’s specialized advancements in forecasting with its own patented capabilities to enhance its services and offerings. WeatherBank’s specialized meteorological and environmental services include custom forecasting, ambient air quality monitoring, instrumentation and calibration, environmental system audits, and forensic weather studies. WeatherBank operations, based in the City area, will be added to AccuWeather’s suite of offices and join AccuWeather Enterprise Solutions’ commercial services team. They will be a sister site with the AES Severe Weather Center in Wichita, KS. See the original announcement.

February 2015 54 News from Data Vendors 55

data-coverage/. To see the full list of ZEMA data providers, visit http://www.ze.com/the-zema-solutions/ http://www.tpinformation.com/ http://www.weather.com/weather/tenday/l/CAXX0518:1:CA http://www.snl.com/Sectors/Energy/NaturalGas.aspx http://www.sem-o.com/marketdata/Pages/default.aspx http://www.pjm.com/markets-and-operations.aspx http://www.iso-ne.com/markets-operations/markets/da-rt-energy-markets https://www.gfigroup.com/markets/commodities/energy-and-commodities/electricity.aspx http://www.commoditywx.com/ http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html http://www.industry.gov.au/Industry/Pages/default.aspx http://www.caiso.com/Pages/default.aspx February 2015 http://www.spp.org/ http://www.argusmedia.com/ For further information on these reports, visit: natural gas markets. greater data coverage in strategic areas of the petrochemical, oil, metals, electricity, and oil, metals, electricity, greater data coverage in strategic areas of the petrochemical, these expansions of ZE’s data collection have been implemented in response to a need for implemented in response to these expansions of ZE’s data collection have been to cover EOD German electricity reference prices as well as ferrous futures and spots. All of reference prices as well as ferrous futures to cover EOD German electricity visual credits, settlement period summaries, and more. As well, three GFI reports were added were reports period summaries, and more. As well, three GFI visual credits, settlement The five NEISO reports include day-ahead NCPC payment reports for generator credits, credits, day-ahead NCPC payment reports for generator The five NEISO reports include the Australian Government, which include petroleum production, imports, exports, and sales. and exports, which include petroleum production, imports, the Australian Government, DeWitt Benzene Daily futures, prompts, and spots. Seven oil-related reports were added from added were prompts, and spots. Seven oil-related reports DeWitt Benzene Daily futures, Tullett Prebon. The three new Argus reports cover Weather Group, and Tullett Prebon. The three SEMO, SNL, Commodity Argus, NEISO, PJM, GFI, SPP, the Weather Channel, the Australian Government, CME, CAISO, CME, SPP, the Weather Channel, the Australian Government, Argus, NEISO, PJM, GFI, Since the last issue of ZE DataWatch, ZE has added numerous data reports published by published DataWatch, ZE has added numerous data reports Since the last issue of ZE reports, including reports that are collected based on clients’ specific needs. reports, including reports ZE then provides its clients with access to both public (free subscription) and private data and private with access to both public (free subscription) ZE then provides its clients Exchange, the New York Mercantile Exchange, the Intercontinental Exchange, and OPEC. OPEC. and Mercantile Exchange, the Intercontinental Exchange, Exchange, the New York electricity, weather, agriculture, and finance, including Platts, Argus, the Chicago Mercantile Mercantile Chicago and finance, including Platts, Argus, the electricity, weather, agriculture, and commodity data changes. ZE collects data from vendors spanning oil, natural gas, spanning oil, natural data from vendors data changes. ZE collects and commodity in February in energy to date on the latest has consistently kept up ZE PowerGroup Inc. (ZE) For 20 years, ZEMA Adds Oil, Power, Natural Gas, Metals, and Weather Data Sources Data Metals, Gas, Natural and Weather ZEMA Power, Oil, Adds News from Data Vendors 56

To learn more, please visit http://community.ze.com/default.html. To learn more, please visit http://community.ze.com/default.html. communication between ZE and its clients. February 2015 It was designed to help individuals enhance their use of ZEMA and to streamline It was designed to help individuals enhance their Overall, the Community functions as a single point of access for all ZEMA needs and queries. of access for all ZEMA needs Overall, the Community functions as a single point and more. releases, ZEMA training resources, the complete ZEMA data catalog, a ZEMA reference library, ZEMA data catalog, a ZEMA reference releases, ZEMA training resources, the complete information such as ZEMA news and updates, a product road map, info on new ZEMA road map, info on new ZEMA information such as ZEMA news and updates, a product staff and other clients in specialized discussion forums. The site also provides valuable The site also provides valuable staff and other clients in specialized discussion forums. from the ZEMA Application Support team. Users can also engage in conversations with ZEMA can also engage in conversations from the ZEMA Application Support team. Users Through the Community site, ZEMA users can access ZEMA Support to connect with experts ZEMA Support to connect with Through the Community site, ZEMA users can access systems and training materials to enhance clients’ overall product experience. to enhance clients’ overall product experience. systems and training materials Community (the Community). The Community consolidates a wide range of ZEMA support support of ZEMA The Community consolidates a wide range Community (the Community). software ZEMA, has released a new interactive platform for its clients: the ZEMA User User ZEMA a new interactive platform for its clients: the software ZEMA, has released ZE PowerGroup Inc. (ZE), the developer of the award-winning enterprise data management management the developer of the award-winning enterprise data ZE PowerGroup Inc. (ZE), ZE Launches ZEMA User Community Platform News from Data Vendors 57

we’re delivering a flexible platform that empowers them to help themselves; however, we them to help themselves; however, we’re delivering a flexible platform that empowers are higher excitement levels. We don’t have insight into everybody using our product because into everybody using our product are higher excitement levels. We don’t have insight clients are happier with what we’re delivering. They’re increasing ROI,” says El-Ramly. “There increasing ROI,” says El-Ramly. clients are happier with what we’re delivering. They’re With TIBCO Spotfire, ZE has increased its market share. “We have a bigger client-base, and share. “We have a bigger client-base, With TIBCO Spotfire, ZE has increased its market LARGER FOOTPRINT WITHIN CUSTOMER OPERATIONS Benefits self-service BI into our ZEMA dashboard,” says El-Ramly. “We improved our product, expanded our capabilities, and saved time by integrating Spotfire and saved time by integrating “We improved our product, expanded our capabilities, By focusing on integrating instead of building, ZE maintained focus on its core competencies. maintained focus on its core competencies. By focusing on integrating instead of building, ZE They’re very responsive, very respectful, and they see that the value is equal.” They’re very responsive, very respectful, and they integration was seamless, very easy,” says El-Ramly. “The TIBCO partnership has been great. “The TIBCO partnership has integration was seamless, very easy,” says El-Ramly. When ZE investigated how the technologies would integrate and perform, “TIBCOZEMA integrate and perform, “TIBCOZEMA When ZE investigated how the technologies would February 2015 integrate and meet customer needs, and we saw that with TIBCO,” says El-Ramly. integrate and meet customer needs, and we saw drove us to TIBCO, but it had to also be a natural partnership, the same culture and desire to partnership, the same culture and drove us to TIBCO, but it had to also be a natural known of TIBCO for a long time, but ZE customers provided the introduction. “Our customers provided the introduction. “Our known of TIBCO for a long time, but ZE customers The ZE team started to look at solutions that had already penetrated the market. They had already penetrated the market. The ZE team started to look at solutions that had Solution capability, and growth.” terms of the software, architecture, and technology, but also in terms of support, pricing, pricing, and technology, but also in terms of support, terms of the software, architecture, especially in the BI space, we need to know they can scale the same way—and not just in just not we need to know they can scale the same way—and especially in the BI space, or two users to very large, globally positioned organizations. When we choose a partner, a partner, globally positioned organizations. When we choose or two users to very large, and when it is available to downstream systems. Also, we have customers that range from one that range to downstream systems. Also, we have customers and when it is available ZE had several requirements. “Our clients are focused on how fast data comes into our system our into “Our clients are focused on how fast data comes ZE had several requirements. going to lose market share.” and deeper within client operations. If we can’t deliver what the client is looking for, then we’re then for, operations. If we can’t deliver what the client is looking and deeper within client best total solution was a top priority. “We want to be in more markets, in different industries, industries, different top priority. “We want to be in more markets, in best total solution was a El-Ramly says that because ZE has an insatiable desire to grow; empowering clients with the with clients ZE has an insatiable desire to grow; empowering El-Ramly says that because started to look at the market for something clients wanted.” started to look at the market “We knew it would take more developers, a long time to market, and a change in focus. So, we focus. in developers, a long time to market, and a change “We knew it would take more self-service BI, and when ZE examined the build vs. partner equation, the answer was clear. the answer the build vs. partner equation, and when ZE examined self-service BI, innovative, build new products and features all the time.” ZE clients were looking for clients were looking all the time.” ZE new products and features innovative, build As Waleed El-Ramly, chief product officer of ZE, explains, “To stay on top, you have to be stay on top, you have of ZE, explains, “To chief product officer As Waleed El-Ramly, Challenge ZE Enhances Corporate Footprint with TIBCO Spotfire News from Data Vendors 58 February 2015 There is so much more to come for us.” easier—and we’re going to look at better ways to feed downstream systems such as TIBCO. feed downstream systems such easier—and we’re going to look at better ways to us do that. We’re going to continue to grow our own product, make it better, and integration product, make it better, and us do that. We’re going to continue to grow our own with these tools, we are the fuel,” says El-Ramly. “This partnership with TIBCO is going to help “This partnership with TIBCO is going with these tools, we are the fuel,” says El-Ramly. do more with a customer without necessarily being involved. As long as our data is integrated involved. As long as our data do more with a customer without necessarily being serve more customers in more markets and meet its growth goals. “BI gives us the capacity to serve more customers in more markets and meet Because BI is a large and growing force inside most organizations, ZE has the potential to organizations, ZE has the potential Because BI is a large and growing force inside most Future more people to the table, and you gain more influence.” more people to the table, we were focused on data management and integration. Now, when BI comes up, it invites management and integration. Now, when BI comes we were focused on data making proposals, the conversation goes in different directions now,” says El-Ramly. “Before El-Ramly. goes in different directions now,” says making proposals, the conversation A more differentiated offering has increased ZE’s competitiveness. “When we’re at the table at the we’re has increased ZE’s competitiveness. “When A more differentiated offering INCREASED COMPETITIVENESS propagates across the organization.” before could only serve one person, now they can build something in hours that actually actually that person, now they can build something in hours before could only serve one saying that analysis that used to take days to build now takes just hours. Things they built they Things used to take days to build now takes just hours. saying that analysis that you have a wider client-base. You have more users and higher satisfaction. Customers are Customers You have more users and higher satisfaction. you have a wider client-base. components and capacity, you reach users you’ve never seen before. With a wider solution, solution, a wider you reach users you’ve never seen before. With components and capacity, El-Ramly says that ZE’s more holistic solution increases customer satisfaction. “With more “With holistic solution increases customer satisfaction. El-Ramly says that ZE’s more GREATER CUSTOMER PRODUCTIVITY AND SATISFACTION PRODUCTIVITY GREATER CUSTOMER faster decision-making, and greater productivity.” and greater faster decision-making, They see a wider scope to our offering and a higher ROI because they get faster analysis, they get faster analysis, and a higher ROI because scope to our offering They see a wider El-Ramly, “We know our close rate is better. The value to the client is much more tangible. client is much more better. The value to the know our close rate is El-Ramly, “We Integration with TIBCO has also helped naturally enhance sales opportunities. Says opportunities. Says naturally enhance sales TIBCO has also helped Integration with BETTER CLOSE RATES BETTER has easily doubled in corporations that use BI.” that use in corporations doubled has easily know BI is already a large footprint in the organization, and we feed it. Usership of our data our data of Usership it. we feed and organization, in the footprint a large already BI is know News from Data Vendors 59

February 2015 at the European Energy Exchange, EPEX SPOT, Powernext, Cleartrade and Gaspoint Nordic. Cleartrade and Gaspoint at the European Energy Exchange, EPEX SPOT, Powernext, group comprises contracts for Energy, Environmentals, Freight, Metals and Agriculturals listed Freight, Metals and Agriculturals group comprises contracts for Energy, Environmentals, products and enables access to a network of over 350 trading participants. The offering of the 350 trading participants. The offering products and enables access to a network of over EEX Group provides the central market platform for energy, energy related and commodity energy, energy related and commodity EEX Group provides the central market platform for About EEX Group: more information: www.pegas-trading.com enables market harmonization and forms the leading pan-European natural gas market. For pan-European natural gas enables market harmonization and forms the leading hubs as well as trading in location spread products between these market areas. This setup between these market areas. hubs as well as trading in location spread products product range of PEGAS covers spot and derivatives contracts for the major European gas contracts for the major European product range of PEGAS covers spot and derivatives trade natural gas contracts in the Belgian, Dutch, French and German market areas. The French and German market areas. trade natural gas contracts in the Belgian, Dutch, provides its members with access to all products on one single platform and allows them to on one single platform and allows provides its members with access to all products delivery zone in 2014. On the Spot market, the offering for NBP and ZEE will include the Spot market, the offering for NBP and ZEE delivery zone in 2014. On Group operated by Powernext. PEGAS PEGAS is the central gas trading platform of EEX The launch of products for the ZEE market area follows the successful start of Belgium’s ZTP of Belgium’s the ZEE market area follows the successful start The launch of products for About PEGAS: corresponding location spreads open up completely new trading opportunities.” corresponding location spreads offered. settled Futures contracts on the PSV will also be benefit from access to all hubs via the PEGAS platform. The upcoming products and the and the hubs via the PEGAS platform. The upcoming products benefit from access to all area and the upcoming financially the existing physical products on the Dutch TTF market Dr. Egbert Laege , Executive Director Gas Markets of EEX Group, adds: “Our members will members Director Gas Markets of EEX Group, adds: “Our Dr. Egbert Laege , Executive between for the first time. Location spreads location spread contracts between ZEE and NBP pursue with our new offering.” have the possibility to trade cleared tradable. Moreover, PEGAS market participants will PEGAS is to offer natural gas products for all major European hubs. This is what we will further will what we gas products for all major European hubs. This is PEGAS is to offer natural will be and Calendar Year products On the Derivatives Market, Month, Quarter, Season Jean-François Conil-Lacoste , Chief Executive Officer of Powernext, mentions: “The aim of aim “The , Chief Executive Officer of Powernext, mentions: Jean-François Conil-Lacoste contracts. Day) Weekend, Saturday, Sunday and Individual Within-Day and Day (Day-Ahead, launched at the same time. settled Futures contracts (ICIS Heren) for the Italian Punto di Scambio Virtuale (PSV) will be will (PSV) (ICIS Heren) for the Italian Punto di Scambio Virtuale settled Futures contracts (NBP) as well as for the Belgian Zeebrugge Beach (ZEE) market area on March 26. Financially area on March 26. Beach (ZEE) market as for the Belgian Zeebrugge (NBP) as well by Powernext, will launch Spot and Futures products for the UK’s National Balancing Point National Balancing products for the UK’s will launch Spot and Futures by Powernext, PEGAS, the pan-European gas trading platform operated pan-European gas trading February 3, 2015 – PEGAS, the Leipzig, Paris, PEGAS to Enhance Geographical Offer with NBP, ZEE,PEGASand PSV Contracts Offer to Enhance Geographical with NBP, News from Data Vendors 60

February 2015 of Powernext. congested connection with PEG Nord”, comments Jean-François Conil-Lacoste, CEO congested connection with PEG Nord”, comments stronger than on PEG Nord due to its strong dependency on LNG imports and regularly on LNG imports and regularly stronger than on PEG Nord due to its strong dependency Members to balance their portfolio in this region where volatility is comparatively much where volatility is comparatively Members to balance their portfolio in this region “Powernext welcomes the TRS initiative, as a more liquid southern French area will help our liquid southern French area will “Powernext welcomes the TRS initiative, as a more longer have to subscribe capacities to the interconnection of the two networks”. longer have to subscribe capacities to the interconnection a common price for the settlement of imbalances. As from 1 April 2015, shippers will no As from 1 April 2015, shippers a common price for the settlement of imbalances. of TRS is to simplify client access to the wholesale gas market in southern France, introducing gas market in southern France, of TRS is to simplify client access to the wholesale , CEO of gas transmission and storage operator TIGF, adds: “The main aim Monique Delamare, CEO of gas transmission and storage operator TIGF, Energy Regulator CRE”. creation of a single wholesale gas market in France by 2018 as encouraged by the French by 2018 as encouraged by the creation of a single wholesale gas market in France TRS will increase the attractiveness of the French gas market. This is a first step towards the step towards of the French gas market. This is a first TRS will increase the attractiveness CEO of gas transmission operator GRTgaz, mentions: “The establishment of operator GRTgaz, mentions: “The establishment Thierry Trouvé, CEO of gas transmission contracts which have been traded on Powernext since 26 November 2008. contracts which have been on the TRS market area from March 31, 2015, replacing the existing PEG Sud and PEG TIGF PEG Sud and March 31, 2015, replacing the existing PEG on the TRS market area from platform operated by Powernext, announces that Spot and Futures products will be tradable be tradable will announces that Spot and Futures products platform operated by Powernext, existing GRTgaz PEG Sud and the TIGF market areas. PEGAS, the pan-European gas trading trading gas and the TIGF market areas. PEGAS, the pan-European existing GRTgaz PEG Sud www.powernext.com the (TRS) replacing France under the name “Trading Region South” implemented in southern 50% in EPEX SPOT, 20% in EEX Power Derivatives and 1.5% in ECC. For more information: in ECC. For more information: Derivatives and 1.5% SPOT, 20% in EEX Power 50% in EPEX Southern on 31 March France market area will be 24, 2015 – On April 1, 2015, a common Leipzig, Paris, February operates the National Registry for electricity guarantees of origin in France. Powernext owns in France. Powernext guarantees of origin National Registry for electricity operates the PEGAS for Area Common “TRS” New Market in Introduces Trading natural gas activities of the EEX Group under the PEGAS brand throughout Europe, and throughout Europe, under the PEGAS brand of the EEX Group natural gas activities Powernext is a regulated market operating under AMF supervision. Powernext manages the Powernext manages under AMF supervision. a regulated market operating Powernext is About Powernext: About Group. For more information: www.eex.com For more information: Group. by the central clearing house European Commodity Clearing. EEX is part of Deutsche Börse Börse part of Deutsche EEX is Clearing. Commodity house European central clearing by the Clearing and settlement of transactions concluded or registered on the exchanges is provided is provided exchanges on the or registered concluded of transactions settlement and Clearing News from Data Vendors

Italian Borders Market Coupling to Launch on February 24, 2015 February 2, 2015 – The Italian Borders Market Coupling Project is scheduled to launch on February 24, 2015. The Go-Live is subject to the final approval by the involved regulatory authorities. Three of the five borders of the Italian Borders Market Coupling Project will be coupled with the Multi-Regional Coupling (MRC), thus linking the majority of EU power markets - from Finland to Portugal and Slovenia. The launch of the Italian Borders Market Coupling provides evidence of the flexibility and reliability of the Price Coupling of Regions (PCR) solution. After successful completion of all testing activities in January 2015, the launch of the Italian Borders Market Coupling will take place on February 24, 2015. From this date onwards, capacity for the Italian-Austrian, Italian-French and Italian-Slovenian borders will be implicitly allocated through the PCR solution for the Day-Ahead markets, making those borders part of the MRC. The Day-Ahead markets of MRC extended to the Italian Borders Market Coupling will cover 20 European countries, accounting for about 2,800 TWh of yearly consumption. The daily average cleared volume over these countries will amount to over 4 TWh, with an average daily value of over €150m. In addition, with reference to the market coupling currently in operation between Italy and Slovenia, the Gate Closure Time for the Day-Ahead Markets of Italy and Slovenia is set at 12:00 pm starting from the trading date February 10, 2015 (delivery date February, 11 2015). Information regarding the Italian-Swiss border Though all Swiss borders are technically ready for market coupling, their coupling is delayed in the course of ongoing bilateral negotiations between Switzerland and the EU Commission. The partners remain ready to go live within a short timeframe, as soon as the present political situation evolves. Information regarding Italian-Greek border The Italian-Greek border will be technically ready for market coupling at a later date. The Go-Live date of the Italian-Greek border will be decided as soon as its technical readiness to enter has been assessed within the Italian Borders Market Coupling project. Information regarding regulatory approval As stated in the first page, the launch of the Market Coupling remains subject to the approval of the National Regulatory Authorities of Austria, France, Italy and Slovenia. Consequently, the confirmation of the Market Coupling launch on the Italian Borders will happen when such approvals by all National Regulatory Authorities have been published.

February 2015 61 About the Projects News from Data Vendors The Multi-Regional Coupling (MRC) is a pan-European project dedicated to the integration of power spot markets in Europe. It is a cooperation between the Power Exchanges APX, Belpex, EPEX SPOT, Nord Pool Spot and OMIE, and the Transmission System Operators 50Hertz, Amprion, Creos, Elia, Energinet.dk, Fingrid, National Grid, REE, REN, RTE, Statnett, Svenska Kraftnät, TenneT TSO B.V. (Netherlands), TenneT TSO GmbH (Germany) and TransnetBW. The cooperation operates a price coupling of the Day-Ahead wholesale electricity markets, increasing the efficiency of the allocation of interconnection capacities of the involved countries and optimising the overall social welfare. The MRC relies on one single algorithm, calculating simultaneously the electricity market prices, net positions and flows on interconnectors between bidding zones, is based on implicit auctions and facilitated through the Price Coupling of Regions solution. The MRC currently covers countries accounting for 75% of European power consumption. Price Coupling of Regions (PCR) is the initiative of seven European Power Exchanges (APX, Belpex, EPEX SPOT, GME, Nord Pool Spot, OMIE and OTE), to develop a single price coupling solution to be used to calculate electricity prices across Europe and allocate cross-border capacity on a day-ahead basis. This is crucial to achieve the overall EU target of a harmonised European electricity market. The integrated European electricity market is expected to increase liquidity, efficiency and social welfare. PCR is open to other European Power Exchanges wishing to join. Today, PCR is used to couple the Multi-Regional Coupling, covering 75% of European consumption, and the 4M Market Coupling between the markets of Czech Republic, Hungary, Romania and Slovakia. Italian Borders Working Table (IBWT) is a joint Market Coupling project between the Transmission System Operators (ADMIE, APG, ELES, RTE, SWISSGRID and TERNA) and Power Exchanges (BSP, GME, EPEX, EXAA and LAGIE) of Austria, France, Greece, Italy, Slovenia, and Switzerland, with the support of CASC and ECC. This project aims to define the pre-coupling, post coupling and exceptional situations processes that are necessary to allow the operation of Market Coupling between MRC and the Italian-Borders day-ahead markets.

Ten Considerations for the European Internal Energy Market Paris / Leipzig / Bern / Vienna, February 5, 2015 – The European Power Exchange EPEX SPOT has published a Policy Paper entitled “Advocacy for an Integrated and Competitive Electricity Market in Europe”. The paper outlines ten considerations by EPEX SPOT that would support and facilitate the integration of the European power market. Recent interventions in national energy markets have set the scene for a major turning point in the European energy policy. At the same time, State and Government leaders have agreed on the new EU climate and energy framework for 2030, during the European Council of October 2014. In the coming months, decision makers and stakeholders of the energy sector will face important political choices. They should stand firm behind a European and market-based energy policy.

February 2015 62 The European Power Exchange EPEX SPOT is deeply committed towards the goals of the News from Data Vendors Internal Energy Market and the Energy Union. Accordingly, the Policy Paper outlines current challenges, discusses considerations for an efficient energy policy and explores the role of the European Power Exchange as one of the pillars of the electricity value chain. We invite European decision makers to take these considerations into account while fostering an integrated and competitive European electricity market. The Policy Paper can be found on the website of EPEX SPOT (www.epexspot.com) or by following the link above. The European Power Exchange EPEX SPOT SE operates the power spot markets for Germany, France, Austria and Switzerland (Day-Ahead and Intraday). Together these countries account for more than one third of the European power consumption. EPEX SPOT also acts as market operating service provider for the Hungarian Power Exchange HUPX and operates the coupling between the Czech, the Slovak, the Hungarian and the Romanian markets on behalf of the local Exchanges. It is a European company (Societas Europaea) based in Paris with branches in Leipzig, Bern and Vienna. Over 220 companies from Europe are active on EPEX SPOT. 382 TWh have been traded on EPEX SPOT’s markets in 2014.

Platts Forward Curves – Petrochemicals February 20, 2015 - Platts Forward Curves-Petrochemicals (PFC-Petchems) subscribers now have access to forward curves that are based on Platts’ long-established Market-On-Close (MOC) price assessment process and reflective of open market values every trading day in Asia, Europe and North America at market close. The product includes 40 forward curves, spreads and differentials on a regional basis, as well as forward prices for key petrochemical inputs. Read the brochure for more information.

February 2015 63 News from Data Vendors

OTC Global Holdings Launches EOXLive Markets Commodities platform from leading IDB provides transparency, pre-trade intelligence and unmatched liquidity HOUSTON (February 23, 2015) – OTC Global Holdings LP (OTCGH), the leading independent commodities interdealer broker, today announced the launch of EOXLive active markets. The commodities platform provides traders and risk managers with unique information and liquidity not currently available on any screen. EOXLive and independent software vendor (ISV) screens will initially feature OTCGH pre-trade markets and last-traded prices for natural gas options. The platform will soon expand into OTCGH’s full set of commodities markets to lever- age the firm’s strong market share in natural gas, power, petrochemicals, crude, refined prod- ucts, metals, agricultural, weather and emission derivatives markets. In addition, customers will soon be able to send requests and submit orders through EOXLive. “The EOXLive platform is bringing unprecedented transparency, pre-trade intelligence and liquidity to these commodity markets,” said Javier Loya, chairman and CEO of OTCGH. “OTCGH made a name for itself as a pioneer in this industry by daring to do things differently. The launch of EOXLive markets is the latest example of our forward thinking, technology-driven and customer-centric approach to doing business.” The launch is part of OTCGH’s mission to provide unmatched customer service and liquidity to its customers. For more information or to receive access to EOXLive, visit http://www.otcgh.com/eox or contact EOXLive via email: [email protected], AIM: eoxops or phone: 877-737- 8511. About OTC Global Holdings Formed in 2007, OTC Global Holdings has become the world’s largest independent institutional broker of commodities, covering financial and physical instruments from offices in Chicago, Geneva, Houston, New Jersey, London, Louisville and New York. The company is a leading liquidity provider on CBOT, ICE and NYMEX, ranking number one amongst its peers in numerous derivatives contracts across biofuels, emissions, commodity index products, crude oil, natural gas, natural gas liquids (NGLs), metals, petrochemicals and refined products, power, proppants, soft commodities, and weather derivatives. The company serves more than 450 institutional clients, including over 70 members of the Global Fortune 500, and transacts in hundreds of different commodity delivery points in Asia, Europe and the Americas. To learn more about the company, please visit www.otcgh.com or go to https://www.youtube.com/watch?v=u5Ohwr7h3tE.

February 2015 64 Monthly Market Analysis 65 © Graph created with ZEMA © Graph created

12-month average of $6 USD/Bbl. February 2015 in the graph above) sat at $7 USD/Bbl this month, which was $1 USD/Bbl below the last which was $1 USD/Bbl below in the graph above) sat at $7 USD/Bbl this month, Bbl and $86 USD/Bbl, respectively. The Brent-WTI spread (represented by the purple area spread (represented by the purple Bbl and $86 USD/Bbl, respectively. The Brent-WTI Furthermore, the last 12-month averages for Brent and WTI on NYMEX dropped to $92 USD/ and WTI on NYMEX dropped to Furthermore, the last 12-month averages for Brent WTI oil prices traded at $52 USD/Bbl and $51 USD/Bbl below the last 12-month average. below the last 12-month WTI oil prices traded at $52 USD/Bbl and $51 USD/Bbl In February 2015, data from NYMEX prompt-month future settlements showed that Brent and future settlements showed that In February 2015, data from NYMEX prompt-month 2015, resembling Brent-WTI spread differentials from early 2014. (Reuters) 2015, resembling Brent-WTI spread differentials futures has gotten wider, from $2 USD/ Bbl in January 2015 to $7 USD/ Bbl in February 2015 to $7 USD/ Bbl in February futures has gotten wider, from $2 USD/ Bbl in January Russia pushed prices up. In comparison to January 2015, the spread between WTI and Brent 2015, the spread between WTI Russia pushed prices up. In comparison to January increased global demand and geopolitical concerns about energy supplies from Libya and about energy supplies from increased global demand and geopolitical concerns to a market depressed earlier by worries about euro zone stability. (Reuters) Furthermore, Furthermore, by worries about euro zone stability. (Reuters) to a market depressed earlier and $55 USD/ Bbl for WTI, prices have risen moving into February, as short-covering returned prices have risen moving into February, as short-covering and $55 USD/ Bbl for WTI, Since Brent found its bottom on January 13, 2015, with a price set at $45 USD/ Bbl for Brent Bbl for USD/ on January 13, 2015, with a price set at $45 Since Brent found its bottom ting output to prop up prices. (Reuters) ting output to prop up prices. Gulf allies used their influence within OPEC to keep production rates stable, rather than cut- than rather within OPEC to keep production rates stable, Gulf allies used their influence June 2014 and February 2015. The decline accelerated in November when Saudi Arabia and Arabia Saudi 2015. The decline accelerated in November when June 2014 and February According to data from NYMEX, crude oil prices for Brent and WTI more than halved between between halved crude oil prices for Brent and WTI more than According to data from NYMEX, Crude Brent Oil vs. WTI: Contract Prompt-Month (NYMEX) Monthly Market Analysis 66 © Graph created with ZEMA © Graph created

February 2015 worries that US crude inventories, already at record highs, could increase further. (Reuters) highs, could increase further. worries that US crude inventories, already at record surplus in supplies as OPEC resisted calls to cut output drove prices up. The data raised output drove prices up. The data surplus in supplies as OPEC resisted calls to cut slowed since February 20, 2015, as a stronger dollar and underlying concerns over a and underlying concerns over slowed since February 20, 2015, as a stronger dollar expected to increase as much as 6%. The pace of oil rigs actively drilling in the United States in the United much as 6%. The pace of oil rigs actively drilling expected to increase as Over the next six months, WTI futures are expected to gain as much as 4% while Brent is while Brent WTI futures are expected to gain as much as 4% Over the next six months, from $2 to $5 USD/Bbl (the purple area) on average for the next 24 months. from $2 to $5 USD/Bbl of Brent increased from $50 USD/Bbl to $51 USD/bbl. The Brent-WTI spread also increased increased also USD/Bbl to $51 USD/bbl. The Brent-WTI spread of Brent increased from $50 for delivery in March 2015 remained unchanged at $48 USD/Bbl this month, while the price the while remained unchanged at $48 USD/Bbl this month, for delivery in March 2015 climb over the next two years, after prices have hit the floor in January 2015. The price of WTI price The after prices have hit the floor in January 2015. climb over the next two years, According to data from NYMEX future settlements, the Brent and WTI prices for delivery will for delivery future settlements, the Brent and WTI prices According to data from NYMEX Crude Brent Oil vs. WTI: Forward Curve (NYMEX) North American Natural Gas Spot Prices (NYMEX) Monthly Market Analysis

© Graph created with ZEMA

On the New York Mercantile Exchange (NYMEX), prices at Henry Hub, PG&E, and Chicago remained relatively flat and at just below $3 USD/MMBtu throughout the first three weeks of February 2015. Northeastern Gas, as represented by Transco Zone 6, was the most volatile among all observed locations with prices ranging from $3.09 USD/MMBtu on February 2 to $5.25 USD/MMBtu on February 11, dipping to $4.66 USD/MMBtu the next day and settling at $5.59 USD/MMBtu on February 20. Prices at Transco Zone 6 averaged out at $4.49 USD/ MMBtu over the course the first 20 days of February 2015 as the cold spell continued, even as new storm system was expected to move into the region. (EIA) When compared to the first 20 days of January 2015, the average prices decreased as tem- peratures warmed and demand declined. Prices fell from $4.18 USD/MMBtu in New York’s Transco Zone 6 to $1.75 USD/MMBtu, from $3.17 USD/MMBtu in Chicago to $2.84 USD/ MMBtu, from $2.96 USD/MMBtu in Henry Hub to $2.73 USD/MMBtu, and from $3.28 USD/ MMBtu in California’s PG&E Citygate to $2.91 USD/MMBtu. Comparing February 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 6%, 45%, 47%, and 58%, respectively.

February 2015 67 Monthly Market Analysis 68 © Graph created with ZEMA created © Graph

February 2015 forecasts for continuing cold weather. (EIA) forecasts for continuing Henry Hub prices remain relatively low due to low demand in the Southwest, even with with even relatively low due to low demand in the Southwest, Henry Hub prices remain For the week ending February 19, 2015, EIA’s Natural Gas Weekly Update reported that that 19, 2015, EIA’s Natural Gas Weekly Update reported For the week ending February twelve months. to $2.96 USD/MMBtu by the end of the last Monday of February 2015 for the following the following the end of the last Monday of February 2015 for to $2.96 USD/MMBtu by the previous month. Henry Hub futures decreased from $3.27 USD/MMBtu in January 2015 in January Hub futures decreased from $3.27 USD/MMBtu the previous month. Henry On NYMEX, natural gas futures at Henry Hub declined by 9% in February 2015 compared to 2015 compared at Henry Hub declined by 9% in February On NYMEX, natural gas futures HenryForward Gas Natural Hub Curve (NYMEX) Monthly Market Analysis 69 © Graph created with ZEMA © Graph created with ZEMA © Graph created

February 2015 4C on February 22. among all observed cities, as the temperature dipped to -24C on February 19 and climbed to to -24C on February 19 and among all observed cities, as the temperature dipped the two-year average. Also, the city of New York experienced the largest weather fluctuations the largest weather the two-year average. Also, the city of New York experienced 1 degree(s), respectively. New York and Chicago were 6 and 1 degree(s), respectively, below were 6 and 1 degree(s), respectively, 1 degree(s), respectively. New York and Chicago temperatures, this year’s February felt warmer in San Diego and by 3 and 3 and by February felt warmer in San Diego and San Antonio temperatures, this year’s When comparing the past two-year average of February temperatures to February 2015 2015 February two-year average of February temperatures to When comparing the past 2014, and Chicago is relatively unchanged. 2014, and Chicago is relatively The average temperature in New York is about 5C colder this February compared to February to February in New York is about 5C colder this February compared The average temperature the month. New York and Chicago, on the other hand, are still feeling the cold snap of winter. of cold snap Chicago, on the other hand, are still feeling the the month. New York and San Antonio as temperatures remained consistently above 10 degrees Celsius (C) throughout throughout (C) remained consistently above 10 degrees Celsius San Antonio as temperatures In February 2015, the temperature started to reflect the onset of spring in San Diego and and San Diego started to reflect the onset of spring in In February 2015, the temperature Actual Weather (Accuweather) Actual Weather Monthly Market Analysis 70 © Graph created with ZEMA created © Graph

February 2015 20 could be responsible for the spike in prices compared to the other observed cities. 20 could be responsible for the spike in prices compared A sharp decrease in temperature in New York and Chicago between February 9 and February Chicago between February 9 and A sharp decrease in temperature in New York and month to $86 USD/MWh on February 20. month to $86 USD/MWh experienced a sharp increase in price, rising from $43 USD/MWh at the beginning of the of beginning in price, rising from $43 USD/MWh at the experienced a sharp increase 20, with prices peaking at $50 in the middle of the month. Similarly, NYISO Zone A also A also Zone $50 in the middle of the month. Similarly, NYISO 20, with prices peaking at power rose from $43 USD/MWh at the beginning of the month to $88 USD/MWh on February on at the beginning of the month to $88 USD/MWh power rose from $43 USD/MWh month, from $34 and $28 USD/MWh, respectively, at the beginning of the month, PJM peak PJM month, USD/MWh, respectively, at the beginning of the month, from $34 and $28 temperatures in the East. While CAISO and ERCOT prices remained stable throughout the throughout While CAISO and ERCOT prices remained stable temperatures in the East. represented by APS Zone, illustrates an upward trend of prices as a result of a drop in in of a drop illustrates an upward trend of prices as a result represented by APS Zone, North 345 kV and CAISO SP15. NYISO, as represented by Zone A prices and PJM PJM SP15. NYISO, as represented by Zone A prices and North 345 kV and CAISO On the ICE, day-ahead peak electricity prices have remained flat in February 2015 in ERCOT in 2015 electricity prices have remained flat in February On the ICE, day-ahead peak Electricity:Prices Day-Ahead (ICE) In Depth 71

By Aiman El-Ramly, Aiman El-Ramly, By Inc. ZE PowerGroup C.S.O. [email protected] By Aiman El-Ramly By

Growth Decline and

Boom and Bust, War and Peace, and Peace, Bust,Boom and War The Ages Seven Oil: of 1921-1973: Texas in the Gusher Age 1911-1921: A Pax on Arabia 1870-1911: Rockefeller Creates the Multinational Oil Standard 1870-1911: Rockefeller Creates the Multinational 1859-1870: Illumination Births an Industry

February 2015 and forecasting momentary drops to $20. We are in an oil glut not seen since the in an oil glut not seen since the and forecasting momentary drops to $20. We are “head-fake.” And Citi would go even further by reducing their annual forecast for Brent crude their annual forecast for “head-fake.” And Citi would go even further by reducing another month, we would have quoted Citi stating that the current surge in oil prices is just a that the current surge in oil prices another month, we would have quoted Citi stating possible decline to $30 and from an Iranian Oil Minister a decline to $25. Had we waited a decline to $25. Had we possible decline to $30 and from an Iranian Oil Minister You may also recall that last month we quoted predictions from Goldman Sachs of a from Goldman Sachs You may also recall that last month we quoted predictions $45 that we talked about last month. strut between $48 and $54, in what some may call a dead cat’s bounce from the low of a dead cat’s bounce from the strut between $48 and $54, in what some may call oil and natural gas transportation company. In the last month, oil has been dancing a fickle last month, oil has been dancing oil and natural gas transportation company. In the since its high of nearly $150/barrel in June 2008, following the implosion of SemGroup, the following the implosion of SemGroup, since its high of nearly $150/barrel in June 2008, clarity, all prices quoted are in real 2014 inflation-adjusted dollars). Oil has taken a deep dive dollars). Oil has taken clarity, all prices quoted are in real 2014 inflation-adjusted growth followed by periods of accumulated average price decline of greater than 30% (for price decline of greater than growth followed by periods of accumulated average the seven ages of oil as those periods in time that saw oil price You may recall that we defined the seven ages of oil as those periods in time that 4. 3. In Part One of our feature story from last month, we covered the first four of the story from last month, we covered the first four In Part One of our feature 2. 1. The Ages Seven Continued “seven ages of oil.” Part Two of Two of Two Part In Depth 72 and Detonation February 2015 7. 2008-2015: All Fracked Up , 6. 1994 -2008: Deregulation, Speculation, Manipulation 5. 1973-1994: The Middle East Shrugs its Shackles seven ages of oil: is a future for OPEC? We will answer that question and others as we cover the final three of the and others as we cover the final is a future for OPEC? We will answer that question not get ahead of ourselves. How did we actually come to a point where we are asking if there come to a point where we are asking not get ahead of ourselves. How did we actually change in the global energy play, the last ace in the Middle East may have fallen. But let us Middle East may have fallen. change in the global energy play, the last ace in the of ISIS dwarfs the events of the Yom Kippur War and conflict with Israel. And now, with the conflict with Israel. And now, of ISIS dwarfs the events of the Yom Kippur War and than it is now. The crisis that exists following the Iraq War, Arab Spring, and the current rise Iraq War, Arab Spring, and the current than it is now. The crisis that exists following the of Western nations?It is hard to imagine a time when the Middle East was in more disarray the Middle East was in more of Western nations?It is hard to imagine a time when OPEC nations have relevance in the future when they no longer form an integral part of the Pax they no longer form an integral part OPEC nations have relevance in the future when relevance – who will be the relevant oil nations of the future? Or more specifically, can the the future? Or more specifically, relevance – who will be the relevant oil nations of effectively closed to any significant imports, everyone must be asking the question of must be asking the question effectively closed to any significant imports, everyone With energy independence achieved in the United States, and the world’s largest oil market States, and the world’s largest With energy independence achieved in the United into the battle for Asian and European markets. A four-decade ban on oil exports could be lifted, thus plunging the United States headlong thus plunging the United States A four-decade ban on oil exports could be lifted, ultra-light US crude to the rest of the world. war on oil by clearing the way for the shipment of as many as a million barrels per day of as many as a million barrels per war on oil by clearing the way for the shipment of and economic relations. The Obama Administration is actively opening up a new front on the is actively opening up a new and economic relations. The Obama Administration security to total energy liberation by the shale boom has wholly changed international political international by the shale boom has wholly changed security to total energy liberation for energy Mitchell, from a net importer fighting a global war introduced by George P. The transformation of the United States, enabled via the innovations in fracking technology technology United States, enabled via the innovations in fracking The transformation of the is going to bail, or be excised, from the market? is going to bail, or be excised, the current prices are absolutely not sustainable. There has to be fallout. The question is: who The question not sustainable. There has to be fallout. the current prices are absolutely Boom. But back then, as now, not everyone could chase the European or Asian markets, and Asian markets, now, not everyone could chase the European or Boom. But back then, as and similar stratagems deployed during the US oil oligarchies of the Texas Oil Texas of the stratagems deployed during the US oil oligarchies Standard Oil and similar Rockefeller’s classic monopolistic market saturation and the price discounting ploys of ploys market saturation and the price discounting Rockefeller’s classic monopolistic prices to Asia that have not been seen for fourteen years. The times are reminiscent of of been seen for fourteen years. The times are reminiscent prices to Asia that have not strong on production and cutting prices. Saudi Arabia, Iraq, Iran, and Kuwait are offering offering are cutting prices. Saudi Arabia, Iraq, Iran, and Kuwait strong on production and levels. Not to be left out, Brazil is pumping out oil feverously, and the pivotal OPEC nations are nations OPEC Brazil is pumping out oil feverously, and the pivotal levels. Not to be left out, ensuing conflict in Ukraine. Just like the United States, Russia is also pumping oil at record is also pumping oil the United States, Russia in Ukraine. Just like ensuing conflict heating up again with strife and global posturing over events in the Crimean Peninsula and the in the Crimean Peninsula posturing over events with strife and global heating up again when Russia and the United States went head-to-head on all fronts. The cold, hot, cold war is fronts. The cold, hot, head-to-head on all and the United States went when Russia What is more, we are back to the heyday of a global competition reminiscent of the Cold War, reminiscent of the of a global competition we are back to the heyday What is more, pressure on prices. US oil is on the brink of overflowing. prices. US oil is on the brink pressure on storage may possibly become maxed out, which would obviously put incredible downward put incredible out, which would obviously possibly become maxed storage may United States in a position of flagrant over-production. The glut is so severe that the available available the severe that The glut is so over-production. position of flagrant States in a United refiners, traders, and others are at the most extreme level in 80 years. And it is not only the not And it is in 80 years. extreme level at the most others are traders, and refiners, an all-time high. This is backed by EIA reports showing that the amount of oil stored by of oil stored that the amount showing by EIA reports is backed high. This an all-time oil rush. Even with rig counts and drilling in decline, production in the United States remains at at remains States United in the production in decline, drilling and counts rig with Even oil rush. In Depth 73 © Graph created with ZEMA © Graph created

Figure 1: US oil price fluctuations throughout the Seven Ages of Oil (1859-2015) Figure 1: US oil price fluctuations February 2015 States in the Yom Kippur War. Iran had previously been stung by British and American been stung by British and American States in the Yom Kippur War. Iran had previously tensions grew. But these tensions came to a head with the overt involvement of the United with the overt involvement of the tensions grew. But these tensions came to a head With the insertion of Israel into the Middle East, resulting in the Israeli-Palestinian conflict, in the Israeli-Palestinian With the insertion of Israel into the Middle East, resulting The United Arab Emirates, Algeria, Nigeria, Ecuador, Gabon, and Angola. The United Arab Emirates, Algeria, Nigeria, Ecuador, oppression (a greed for oil) intensified, OPEC would grow to include Qatar, Indonesia, Libya, grow to include Qatar, Indonesia, oppression (a greed for oil) intensified, OPEC would oil business. As nationalistic fervor and a reaction against what was seen as Western against what was seen as Western oil business. As nationalistic fervor and a reaction the benefit of Western growth, while exclusively benefiting from the balance of the integrated from the balance of the the benefit of Western growth, while exclusively benefiting . It was perceived, justifiably, that the Sisters were able to keep oil prices depressed to were able to keep oil prices Texaco. It was perceived, justifiably, that the Sisters Seven Sisters were the global oil majors of ESSO, Shell, BP, , Chevron, Gulf, and Shell, BP, Mobil, Chevron, Gulf, Seven Sisters were the global oil majors of ESSO, Arabia along with Venezuela – to mitigate the price control ability of the Seven Sisters. The control ability of the Seven Sisters. Arabia along with Venezuela – to mitigate the price intention of the five founding members – the Islamic nations of Iran, Iraq, Kuwait, and Saudi nations of Iran, Iraq, Kuwait, intention of the five founding members – the Islamic While the idea initiated in Venezuela, it would be ratified in Bagdad. Ostensibly, it was the ratified in Bagdad. Ostensibly, it While the idea initiated in Venezuela, it would be notably in Iran and Venezuela. These two countries would be critical in bringing about OPEC. would be critical in bringing about notably in Iran and Venezuela. These two countries War. Indeed, WWII fueled nationalistic fervor across the entire oil-producing world, most the entire oil-producing world, War. Indeed, WWII fueled nationalistic fervor across Nationalism was the word of the day and would be a contributing factor to the Second World a contributing factor to the Second Nationalism was the word of the day and would be reserves, the rest of the world was pushing back against its former colonial masters. against its former colonial masters. reserves, the rest of the world was pushing back Ironically, as the US was making headway in Arabia, establishing a firm foothold in foreign oil establishing a firm foothold Ironically, as the US was making headway in Arabia, Middle East, much to the chagrin of the British. transforming the Middle East into an oil economy. America had established itself firmly in the America had established itself transforming the Middle East into an oil economy. out. Quickly thereafter, with the discovery of oil, the American oil companies began American oil companies began out. Quickly thereafter, with the discovery of oil, the fingers into the desert as well. The King was desperate for money. The American gamble won gamble well. The King was desperate for money. The American fingers into the desert as were only brought together with a heavy hand. The worldwide depression reached its long its reached with a heavy hand. The worldwide depression were only brought together fractious collection of warring nomadic bands spread out across a desert wasteland. They wasteland. nomadic bands spread out across a desert fractious collection of warring in the post-depression years, the British balked. At this time, Ibn Saud’s kingdom was a was kingdom the British balked. At this time, Ibn Saud’s in the post-depression years, much American led. When America began making overtures to King Ibn Saud of Saudi Arabia Saudi of America began making overtures to King Ibn Saud much American led. When It is important to understand that the oil industry is largely a Western invention and is very is and that the oil industry is largely a Western invention It is important to understand 1973-1994: The Middle East Shrugs its Shackles In Depth 74 “After 1980, hard economic times reduced “After 1980, hard economic times reduced demand for oil, and overproduction resulted in a glut on the world market.” already in turmoil after the untimely (short-sighted) by unilateral cessation of the Bretton Woods Accord hope to President Nixon, were sent into further disarray. The have been tie oil prices to the US dollar instead of gold may better served at a much later date. Recession and inflation were to be banes of the financial world well into the 1980s. After 1980, hard economic OPEC on October 20, 1973. Over the next year, crude price would quadruple. World markets, price would quadruple. World OPEC on October 20, 1973. Over the next year, crude the Golden Age of prosperity for the West came at the stroke of a pen at the Kuwait meeting of the stroke of a pen at the Kuwait the Golden Age of prosperity for the West came at February 2015 became the paramount issue of the 1970s. The oil crisis was upon the world. The exit from oil crisis was upon the world. The became the paramount issue of the 1970s. The Energy security, and its direct association with national security and Western freedom, security and Western freedom, Energy security, and its direct association with national 100-year highs. Rationing and long lines at the gas pump, fixtures of wartime, were revived. pump, fixtures of wartime, were 100-year highs. Rationing and long lines at the gas nations was no longer a possibility. As the taps gradually closed, prices soared, resulting in resulting possibility. As the taps gradually closed, prices soared, nations was no longer a momentarily, was on its back heal. A negotiated transition to nationalism for oil producing for oil producing back heal. A negotiated transition to nationalism momentarily, was on its The action by OPEC shook the very foundation of the Western Pax. The West, at least at least the very foundation of the Western Pax. The West, The action by OPEC shook Islamism, remains today the greatest threat facing the oil industry and global security. the greatest threat facing the oil industry and global Islamism, remains today nationalism/ nation in the form of terrorism. Terrorism, fanatic country and every Western burning fiercely for four decades. The flames, bombs, and gunfire have visited every Arab Arab every The flames, bombs, and gunfire have visited burning fiercely for four decades. resulting oil embargo and price setting ignited the Middle East tinderbox. The region has been has The region price setting ignited the Middle East tinderbox. resulting oil embargo and permanent throwing off of the colonial yoke whether in the Middle East or South America. The South America. the colonial yoke whether in the Middle East or permanent throwing off of Americans, OPEC sent a decisive message: self-determination for oil-producing nations – a nations decisive message: self-determination for oil-producing Americans, OPEC sent a Jumping ahead to 1973, in retribution for Egypt’s humiliation at the supposed hands of the of hands in retribution for Egypt’s humiliation at the supposed Jumping ahead to 1973, means of securing Western interests. means of securing Western when clandestine operations and economic throttling fail, overt force has been the traditional force has been the throttling fail, overt operations and economic when clandestine smother Iranian nationalism, including crippling oil embargos and subversion; however, and subversion; however, crippling oil embargos nationalism, including smother Iranian the control of Iran through a puppet shah. In the preceding years, every effort was made to every effort was In the preceding years, Iran through a puppet shah. the control of The payoff to the United States was a share of concessions that would last for 26 years and would last for 26 share of concessions that the United States was a The payoff to The CIA staged the overthrow, hiring local thugs and importing others to overrun the streets. others to overrun the local thugs and importing the overthrow, hiring The CIA staged one deemed critical to the security of the Empire. critical to the security of one deemed impressive colonial reach of the British Empire. This made the oil company a massive asset, asset, a massive the oil company This made British Empire. reach of the colonial impressive the biggest foreign asset of the United Kingdom at the time, which was remarkable, given the given the was remarkable, time, which at the United Kingdom asset of the foreign the biggest retain oil concession from the Anglo-Iranian Oil Company. Recall that Anglo-Iranian Oil was Oil was Anglo-Iranian Recall that Oil Company. Anglo-Iranian from the oil concession retain involvement during the Iranian coup d’état in 1953. That operation was a blatant action to to action a blatant was That operation 1953. in d’état coup Iranian the during involvement In Depth 75

“On July 11, 2008, as crude oil ascended “On July 11, 2008, as crude oil ascended to the lofty heights of $150/barrel, banking SemGroup of Tulsa, Oklahoma, was on a $5 billion payout.” recession regulating markets in the 1990s. The result was a national almost as devastating as that of the 1930s. The shares a blight of the depression-era wheat boom and bust the rise lot in common with tech boom and bust as well as that, and virtual collapse of electric deregulation. It seems – a in oil, we must be riding towards a total collapse before. bottoming out as dramatic as any that has come While there may be some winners (for example Hathaway Warren Buffet and the Shareholders of Berkshire

February 2015 energy, and peace. beleaguered in their attempts to keep up with the myriad threats to US and global economics, economics, global to keep up with the myriad threats to US and beleaguered in their attempts sis, and truly, a new threat to world peace. The SEC and Homeland Security have been been have to world peace. The SEC and Homeland Security sis, and truly, a new threat and loan debacle. From 2000 onward, it seemed that every year brought a new financial cri- a new financial 2000 onward, it seemed that every year brought and loan debacle. From market crashes: the tech bubble (dot.bomb), the California energy crisis, and the mortgage mortgage and the bubble (dot.bomb), the California energy crisis, market crashes: the tech But this too would results in a series of totally unexpected, unmitigated, and disastrous disastrous in a series of totally unexpected, unmitigated, and But this too would results was stimulated by the rise of the Internet and the introduction of electronic trading at home. at home. trading of the Internet and the introduction of electronic was stimulated by the rise in in making markets as they were into their minds that they could be as instrumental The recession would last until the latter half of the 1990s, when commoditization of everything of everything until the latter half of the 1990s, when commoditization The recession would last got it woes really begin when regulators In the opinion of the author, our most recent energy prices declined. Iraq would again surface as a paramount world concern 10 years later. 10 years again surface as a paramount world concern prices declined. Iraq would 1994–2008: and Detonation Manipulation, Deregulation, Speculation, coalition experienced rapid military success in Iraq, concerns over oil supply alleviated and alleviated military success in Iraq, concerns over oil supply coalition experienced rapid duration than the previous oil crises of 1973 and 1979-1980 when Russia invaded of 1973 and 1979-1980 the previous oil crises duration than as the American-led doubled in October; however, Oil prices more than the early 1990s. August 2, 1990. Lasting only nine months, the price shock was less extreme and of shorter less extreme and the price shock was Lasting only nine months, August 2, 1990. recession of enough to trigger the fears may have been Still, the spike and global Afghanistan. The 1990 oil price spike occurred in response to the Iraqi invasion of Kuwait on response to the Iraqi invasion price spike occurred in The 1990 oil oil-producing countries in northern Europe, the Soviet Union, and OPEC. the Soviet Union, countries in northern Europe, oil-producing Japan, Europe, and many third-world nations, but it represented a serious loss in revenue for revenue for in serious loss a but it represented nations, many third-world Europe, and Japan, oil price collapse may have benefited oil-consuming countries such as the United States, as the United such countries oil-consuming have benefited collapse may oil price result was a six-year slide in oil prices culminating with a 46% price drop in 1986. The 1986 The 1986 drop in 1986. a 46% price with prices culminating slide in oil was a six-year result times reduced demand for oil, and overproduction resulted in a glut on the world market. The market. the world glut on in a resulted overproduction oil, and for demand reduced times In Depth 76

“The resulting plethora of regulation has “The resulting plethora of regulation and made and destroyed markets, made destroyed corporations, and made and destroyed nations …” similar to The SemGroup story, save for the commodity, is due to an that of Enron, in that both organizations toppled at both inability to meet a simple margin call. Management that companies explicitly allowed traders to take positions the case created massive exposure to unmitigated risk. In years of of Enron, market exposure was compounded by stock financial impropriety driven by a desire to increase stock in price. Enron’s fall began with the sale of company it was 2001 to meet margin calls. When it finally imploded, and one of the 10 largest companies in the United States, at the it became the singularly largest bankruptcy in history time. The dramatic death of Enron nearly took out below $60/barrel. SemGroup gambled all on a spotted pony. below $60/barrel. SemGroup gambled all on a spotted position. Following the demise of SemGroup, the swiftly declined by 60% to fall by 60% of SemGroup, the price of oil swiftly declined position. Following the demise to the exchange. Go straight to bankruptcy court; do not pass go; do not collect on your your collect on to bankruptcy court; do not pass go; do not to the exchange. Go straight over its entire crude-oil futures position to Barclays investment bank and posted $2.4 billion $2.4 posted position to Barclays investment bank and over its entire crude-oil futures collateral to cover its losing positions. Unable to raise the necessary capital, SemGroup gave SemGroup positions. Unable to raise the necessary capital, collateral to cover its losing dynamite, as they say. Short on oil, SemGroup was forced to put up immediate cash as cash on oil, SemGroup was forced to put up immediate dynamite, as they say. Short The New York Mercantile Exchange (NYMEX) made a call on SemGroup. Boom goes the the goes Exchange (NYMEX) made a call on SemGroup. Boom The New York Mercantile the price of oil. February 2015 sentiment turned due to a variety of social, economic, political, and physical factors, so did factors, a variety of social, economic, political, and physical sentiment turned due to gold for that matter. SemGroup had made a financial play, a massive one; and as the market the and as had made a financial play, a massive one; gold for that matter. SemGroup Oklahoma, was banking on a $5 billion payout. However, not all that glitters is gold, or black or is gold, on a $5 billion payout. However, not all that glitters Oklahoma, was banking July 11, 2008, as crude oil ascended to the lofty heights of $150/barrel, SemGroup of Tulsa, of SemGroup oil ascended to the lofty heights of $150/barrel, July 11, 2008, as crude that many attribute as the pivotal event that triggered the current oil price slide. On slide. pivotal event that triggered the current oil price that many attribute as the This aforementioned bankruptcy list does not even include the seminal SemGroup implosion seminal SemGroup does not even include the bankruptcy list This aforementioned Act – three-quarters of a trillion dollars. of a trillion dollars. Act – three-quarters big US auto makers and their brethren in the American Recovery and Stimulus in the American Recovery makers and their brethren big US auto bankruptcies – $1.5 trillion. The amount of money the American people paid to bail out the people paid to of money the American – $1.5 trillion. The amount bankruptcies Global, Chrysler, Thornburg Mortgage, and Pacific Gas and Electric. The cost of these The cost of these and Pacific Gas and Electric. Thornburg Mortgage, Global, Chrysler, Brothers, Washington Mutual, Worldcom, General Motors, CIT Group, Enron, Conseco, MF Enron, Conseco, CIT Group, Motors, Worldcom, General Mutual, Washington Brothers, Since 2001, the United States has seen the 10 largest US bankruptcies in history: Lehman Lehman in history: US bankruptcies 10 largest has seen the States 2001, the United Since at bargain basement prices), there will surely be many more losers. more losers. be many will surely prices), there basement at bargain who bought distressed technology assets in the 1990s and then energy assets in the 2000s the 2000s in assets energy then and 1990s in the assets technology distressed bought who In Depth 77

2011: FERC Order 1000 2010: Dodd-Frank Wall Street Reform and Consumer Protection Act 2010: Dodd-Frank Wall Street Reform and Consumer 2009: American Recovery Act 2009: Regional Greenhouse Gas Initiative (RGGI): 32 2009: Regional Greenhouse Gas Initiative (RGGI): 2007: Renewable Portfolio Standards 2007: Energy Independence and Security Act 2006: Global Solutions Warming Act of California Assembly Bill 32 2006: Global Solutions Warming Act of California 2006: FERC Order 670 2002: Sarbanes Oxley 2001: FASB 133 Accounting: Derivative Instruments and Hedging Activities 2001: FASB 133 Accounting: Derivative Instruments 1995: Energy Policy Act 1999: FERC Order 2000 1998: Cal-PX Launched (Cal-PX bankrupt à Cal ISO) 1996: Alberta Power Pool, ERCOT, PJM introduced 1996: NYMEX Electricity futures trading initiated 1996: NYMEX Electricity 1996: FERC Orders 888/889/890 1992: Energy Policy Act (EPAct) 1992: Energy Policy Act • • • • • • • • • • • • • • • • February 2015 • and benefits: we can get a sense of the back-and-forth nature of energy regulation and its associated costs its associated back-and-forth nature of energy regulation and we can get a sense of the corporate freedoms in a globalized commodity trading market. If we look just since the 1990s, the since just look we If market. trading commodity a globalized in freedoms corporate nations – largely in the quest for the energy independence and associated economic and economic for the energy independence and associated nations – largely in the quest made and destroyed markets, made and destroyed corporations, and made and destroyed destroyed and made and destroyed corporations, and made made and destroyed markets, energy advantage, and build new energy markets. The resulting plethora of regulation has of regulation new energy markets. The resulting plethora energy advantage, and build maintain energy independence, forestall a pending crisis, maintain competitive competitive forestall a pending peak oil crisis, maintain maintain energy independence, Following the oil crisis, the United States went into regulation overdrive in frenetic efforts to overdrive in frenetic went into regulation oil crisis, the United States Following the plethora of speculative trade shops in financialized energy and commodity markets. financialized energy and trade shops in plethora of speculative today. Like Standard Oil, what was one large, uncontrollable entity has morphed into a entity has morphed large, uncontrollable Oil, what was one today. Like Standard surprising that the Enron model is still ingrained in much of the trading operations that exist trading operations ingrained in much of the the Enron model is still surprising that bust before it and the subprime crisis and fiscal cliff that were to follow. In hindsight, it is to follow. In hindsight, and fiscal cliff that were and the subprime crisis bust before it largest electric utilities, PG&E. The electricity crisis battered the nation, much like the tech nation, much like crisis battered the utilities, PG&E. The electricity largest electric bankruptcy, whilst the California Power Exchange did go bankrupt as well as one of the state’s of the state’s well as one bankrupt as did go Power Exchange the California whilst bankruptcy, FERC to deregulate the nation ceased overnight. The state of California approached approached of California The state ceased overnight. the nation deregulate FERC to stalled in 2001 and never again recovered the momentum it once had. The fervent call of had. The fervent it once the momentum recovered never again in 2001 and stalled electricity deregulation with it, along with a whole industry. The truth is, electric deregulation deregulation electric is, The truth industry. a whole with it, along with deregulation electricity In Depth 78 “Today is a moment in time when every friction point of the past 125 years exits at once.” and the basement, a glut of every type of energy available, Now, the markets in recession, only the bold get the prize. of every nation is price discounting in a still errant chase white the white whale. Alarmingly, there are not enough China whales to go around. And should the need arise, does its has its own abundant untapped shale reserves, as neighbor, Russia.

February 2015 fact is that Putin may have been the first to realize that with the concept of peak oil firmly in that with the concept of peak oil fact is that Putin may have been the first to realize Xi Jinping of China. Overnight, the LNG terminal aspirations of the world were put at risk. The of the world were put Xi Jinping of China. Overnight, the LNG terminal aspirations May when Putin undercut the world and signed a $400 billion multi-year gas deal with $400 billion multi-year gas deal May when Putin undercut the world and signed a nation discounts its price in a courtship dance with the East. This was abundantly clear last clear in a courtship dance with the East. This was abundantly nation discounts its price fuel its economic boom. The reality was, and is, that China is actually the price setter as every price setter The reality was, and is, that China is actually the fuel its economic boom. possibly misguided belief that China would be a price taker as it sought out energy sources to sources energy that China would be a price taker as it sought out possibly misguided belief In truth, since 2010, and even today, the markets have been chasing the Asian dream – the Asian dream even today, the markets have been chasing the In truth, since 2010, and computer screens. traders, financial houses, and investors stare in dead remorse at the red line across their their line across and investors stare in dead remorse at the red traders, financial houses, case, the soldiers, rebels, and civilian casualties lie dead in the streets; in the other case, case, the other and civilian casualties lie dead in the streets; in case, the soldiers, rebels, virtual trading space can be just as fierce as that fought on the far-flung battlefields. In one In one be just as fierce as that fought on the far-flung battlefields. virtual trading space can before and after July 11 drove the price both up and down. The war for superiority in the in the drove the price both up and down. The war for superiority before and after July 11 The price drop was not due to either reduced demand or new supply. Rather, speculation speculation to either reduced demand or new supply. Rather, The price drop was not due volatility and recovery did not have a true basis in fundamental analysis. not have a true basis in fundamental analysis. volatility and recovery did tailspin. Prices spiraled by 60% before the big bounce back to north of $100. In hindsight, the north of $100. In the big bounce back to spiraled by 60% before tailspin. Prices liquidation of positions and assets. With Semgroup in bankruptcy, the industry started its the industry started Semgroup in bankruptcy, positions and assets. With liquidation of the forward price curve, a potential $5 billion market gain instead resulted in a discounted resulted in a discounted billion market gain instead curve, a potential $5 the forward price rel, the short-lived oil distributor out of Oklahoma, SemGroup, imploded. On the wrong side of imploded. On the of Oklahoma, SemGroup, oil distributor out rel, the short-lived on world markets. On July 11, 2008, when the price of crude oil peaked at nearly $150/bar- oil peaked at nearly when the price of crude On July 11, 2008, on world markets. reversal of the United States from a net energy importer to a potential net exporter would have potential net exporter energy importer to a United States from a net reversal of the changer. While it could have been predicted, it seems that few accurately imagined what the what the imagined that few accurately it seems predicted, have been While it could changer. speculation and the realities of a world awash in an oil glut, stemming from the fracking game game fracking from the glut, stemming in an oil a world awash realities of and the speculation The current oil price situation we find ourselves enmeshed in stems both from market both from market in stems enmeshed find ourselves situation we oil price The current 2008-2015: Up All Fracked In Depth 79 “Certainly the current lower oil prices are a “Certainly the current lower oil prices which position much less tenable than that existed prior to 1973.” Saddam Hussein (Iraq), Mohammed Zahir Shah Ben (Afghanistan), Yasser Arafat (Palestine), Zine El Abidine Salah Ali (Tunisia), Hosni Mubarak (Egypt), Ali Abdullah (Yemen), Moammar Gadhafi (Libya), and King Abdullah (Saudi Arabia). Any remaining autocrats beware. Russia, Bashar Assad of Syria still stands, with the aid of civil war but for how long? Sudan lies adrift in a murderous largely that has raged too long and to which the world is for war, blind. Almost every Arab nation is at war, preparing to Iran, or is in a war-like state. Should real conflict come the oil the outcome can only be disastrous, not just for February 2015 incumbent leader in the Middle East has been forcibly deposed (with US intervention) or died: deposed (with US intervention) incumbent leader in the Middle East has been forcibly is monumental ideological conflict with Russia that has no end in sight. Almost every has no end in sight. Almost every is monumental ideological conflict with Russia that Today is a moment in time when every friction point of the past 125 years exits at once. There of the past 125 years exits at Today is a moment in time when every friction point yes, all of this is about energy security and securing the price of a barrel of oil. security and securing the price of a barrel of yes, all of this is about energy Iraq, and seemingly no exit for Obama from the Arab Spring and the revived War on Terror. And on Terror. War for Obama from the Arab Spring and the revived Iraq, and seemingly no exit in the Middle East (leaving Hilary to eventually deal with Hamas), no exit for either Bush from Bush for either Hilary to eventually deal with Hamas), no exit in the Middle East (leaving the energy policy, no exit for Reagan for the Iran Contra affair, no exit for Clinton from strife from strife for Reagan for the Iran Contra affair, no exit for Clinton the energy policy, no exit no exit from this, as there was no exit for Nixon from the energy crisis, no exit for Carter from exit for Carter was no exit for Nixon from the energy crisis, no no exit from this, as there rampant warfare in Iraq, and every week seems to bring a new ISIS beheading video. There is video. and every week seems to bring a new ISIS beheading rampant warfare in Iraq, remains the world’s largest opium producer with record crops reported. Similarly, there is still there opium producer with record crops reported. Similarly, remains the world’s largest stopping terrorism. The Taliban is still strong and fighting in Afghanistan, and the country country and the is still strong and fighting in Afghanistan, stopping terrorism. The Taliban morphed into ISIS. And Obama is no closer to ending the illegal drug trade than he is at is at than he is no closer to ending the illegal drug trade morphed into ISIS. And Obama bloody mess. Saddam is dead. The Taliban nemesis has morphed into Al Qaeda, which has which Qaeda, dead. The Taliban nemesis has morphed into Al bloody mess. Saddam is in a jumpsuit onboard a US aircraft carrier thousands of miles away from Iraq. Iraq is still a is Iraq. Iraq US aircraft carrier thousands of miles away from in a jumpsuit onboard a Neither Bush was able to quell Iraq, even if the junior Bush hailed “mission accomplished” “mission accomplished” even if the junior Bush hailed was able to quell Iraq, Neither Bush blazing (but the Iraqi infrastructure intact). the Iraqi infrastructure intact). blazing (but motivated the Iraq conflict 10 years after his father left the country with Kuwait oil fields with Kuwait oil after his father left the country Iraq conflict 10 years motivated the Taliban almost as elusive as the purported weapons of mass destruction that falsely destruction that falsely weapons of mass as elusive as the purported Taliban almost also adopted the War on Terror that the junior Bush put in place post 9/11. The target was a post 9/11. The target junior Bush put in place the War on Terror that the also adopted to use the Nixonite term, War on Drugs, because drug abuse is a treatable disease. Obama is a treatable disease. because drug abuse term, War on Drugs, to use the Nixonite are nowhere to be found in an energy world turned on its head. These days, Obama prefers not prefers not Obama days, These head. its on turned world energy in an be found to nowhere are markets, the alternative energy rebates, the demonization of oil, and Middle East Peace? They Peace? They Middle East of oil, and demonization rebates, the energy the alternative markets, given the current glut and global energy market woes. Where is the green exchange, the RPS the RPS green exchange, is the woes. Where energy market and global current glut given the The conservation and energy policies that the 1970s brought about have been for naught, naught, for been have about brought 1970s the that policies energy and conservation The In Depth 80 “The war on oil has heated up to its most “The war on oil has heated up to its most dramatic point ever.” the the economy in a market glutted with cheap oil when least one nation’s primary industry is oil. He has to fail in at falls, and of these areas. So, hypothetically, if Saudi Arabia to Iran becomes mired in a Western war, what happens peace this house of cards? Will the essential Middle East And if sought during the Carter era devolve into chaos? Arabia falls and the United States becomes militarily involved in nuclear-enabled Iran (beyond mere economic sanctions), what will be the world reaction? Specifically, what will be Russia’s reaction?

February 2015 unrest, ISIS, and the brotherhood; and retain market share in Asia – all the while maintaining share in Asia – all the while unrest, ISIS, and the brotherhood; and retain market United States at bay; maintain a semblance of relevance in OPEC; concurrently stave off civil stave a semblance of relevance in OPEC; concurrently United States at bay; maintain secure?The new Saudi King has a difficult challenge ahead of him: keep an oil-independent an oil-independent has a difficult challenge ahead of him: keep secure?The new Saudi King Syria in civil war, and Oman in peril, is it even remotely possible that any Arab nation feels Arab nation in peril, is it even remotely possible that any Syria in civil war, and Oman With Afghanistan a feudal mess, Iraq a war zone, Libya in faction, Egypt in a tenuous balance, balance, a tenuous mess, Iraq a war zone, Libya in faction, Egypt in With Afghanistan a feudal the annexation of Palestine as war reparations. the annexation of Palestine the Ottoman Empire and Arabia, including the oil assets, in support of the Western Pax and Pax Western Arabia, including the oil assets, in support of the the Ottoman Empire and the Middle East is still seething over the arbitrary demarcation, segmentation, and division of division and over the arbitrary demarcation, segmentation, the Middle East is still seething What is the only possible outcome? It is ISIS or something very similar to it. Remember that it. Remember outcome? It is ISIS or something very similar to What is the only possible sanctions, reduce their infrastructure to rubble, leave masses hungry, homeless, and angry? and to rubble, leave masses hungry, homeless, sanctions, reduce their infrastructure generals, disenfranchise their ruling elite, kill a number of their family members, impose impose their ruling elite, kill a number of their family members, generals, disenfranchise prior to 1973. their fire inclined and factious, remove their leadership, individuals that are religiously Certainly the current lower oil prices are a position much less tenable than that which existed tenable than that which are a position much less current lower oil prices Certainly the of highly militarized if you take a number Middle East – what happens Looking to the a few third-world consumers desperate to attain the Western standard of living could benefit. standard of living could to attain the Western consumers desperate a few third-world An ImplausibleFuture of irrationality or self-destruction. Who are the winners at $20/barrel oil? Possibly China and China and oil? Possibly at $20/barrel the winners Who are or self-destruction. of irrationality in decline, every nation becomes desperate to retain market position – desperate to the point to the point – desperate position to retain market desperate becomes every nation in decline, energy security and lay claim to its energy position in the East. With war at hand and markets markets and war at hand East. With position in the its energy lay claim to security and energy industry, but for the world. Surely, Russia will then come fully into the throw, to protect its own its to protect throw, the into fully then come will Russia Surely, the world. but for industry, In Depth 81 Are full of passionate intensity. The falcon cannot hear the falconer; The falcon cannot hear the Mere anarchy is loosed upon the world, Mere anarchy is loosed upon The ceremony of innocence is drowned; The ceremony of innocence Turning and turning in the widening gyre Turning and turning in the Things fall apart; the centre cannot hold; Things fall apart; the centre The best lack all conviction, while the worst The best lack all conviction, The blood-dimmed tide is loosed, and everywhere The blood-dimmed tide is Disclaimer: and commodities markets, powered ZE DataWatch is a report comprised of data updates and expectations for energy by ZEMA. The news contained in ZE DataWatch is for information purposes only. Although ZE PowerGroup believes of it. not warrant the accuracy or completeness the information in this report to be correct, the organization does be relied not accounting, or tax advice and should Information in this report is not intended to provide financial, legal, or whatsoever for direct, indirect, special, upon in that regard. ZE PowerGroup is not responsible in any manner use of this report. consequential damages, howsoever caused, arising out of the About ZEMA: analysis. collecting data and performing complex ZEMA is an enterprise data management software designed for system. Each a sophisticated, unified, and automated ZEMA replaces fragmented data management processes with flexibility when integrating it into their organizations. ZEMA component is modular and scalable, giving clients greater the Energy the clock. It has been ranked first in The solution is easy to use and backed by ZE’s support team around software five years in a row. In Energy Risk’s annual Risk Awards “Data Management House of the Year” category for System first in the “Preferred System,” “Ease of survey and rankings, it is also consistently rated by end users as Integration,” and “Customer Service” categories. About ZE PowerGroup Inc.: advanced combines energy industry expertise with ZE is an experienced software and strategic consulting firm that and a sophisticated enterprise data management software development capabilities. ZE is the developer of ZEMA, energy and commodities markets. analysis solution built to meet the challenges of participants in February 2015 global conflict? In the words of the immortal Yeats, global conflict? In the words technical innovation, like the Internet or fracking, somehow create new wealth and stave off a stave and the Internet or fracking, somehow create new wealth technical innovation, like Will political ideals and economic reality come to a head over low priced oil? Or will some new low priced oil? Or come to a head over ideals and economic reality Will political another fall of a Berlin Wall or collapse of a Moscow Kremlin? Will the Arab Spring run dry? Will the Arab Spring of a Moscow Kremlin? a Berlin Wall or collapse another fall of economic blight on most of the world, including Europe and the United States, can we expect United States, can including Europe and the on most of the world, economic blight tentative nuclear balance becomes unbalanced by new, less predictable entrants? With an predictable entrants? by new, less balance becomes unbalanced tentative nuclear might in the United States and Russia? And do the East-West conflagrations matter as conflagrations matter And do the East-West United States and Russia? might in the What is more important – economic buying power and GDP growth in China or militarized in China or militarized buying power and GDP growth important – economic What is more trying to determine its relevance, and not just on the energy supply/demand relationship. relationship. supply/demand on the energy and not just its relevance, to determine trying relevance. But in fact, it is s crumbling of the Pax in a new world order where every nation is nation is where every world order Pax in a new of the it is s crumbling But in fact, relevance. like another market bust, another technically based decline with some fundamental fundamental with some based decline technically bust, another market like another The war on oil has heated up to its most dramatic point ever. On the surface, it may just look just look it may the surface, On ever. point dramatic most to its up heated oil has war on The