November 2012

datawatchWeather Channel to name winter storms

CNBC’s online show “Futures Now” educates investors

NYSE targets Mexico and Brazil

CME closes on Kansas City Board of Trade

EDITIntroduction of new products and data sources

Delisting of products and data sources

Potential impact on data

Changes to data attributes, replacement of products NEW WATCHOut

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The Revival of Western Oil and Gas Production – It Only Changes Everything

d a t a n e w s f o r e n e r g y a n d c o m m o d i t i e s m a r k e t s

Of all the news this month, it was hurricane Sandy that generated the most overwhelming impression. Referred to by the media as a superstorm or even the ‘Frankenstorm’, it brought destruction and despair. Not only did Sandy leave its traces on the lives of those living on the East coast; the storm also had its effect on markets and even data services.

datawatch Summary

Editorial

In Depth

Data NewsPower Markets

Fossil Fuel Markets p. 5 - 6

Agriculture, Forestry and Metal Markets p. 7

Other Matters p. 14 - 15

p. 19 - 20News from Data Vendors

p. 3

FX, Interest Rates, Credit and Equity Indexes p. 11 - 13

CIF Med Jet Fuel Assessment Launched by PlattsPlatts Launches Daily FOB Thailand Assessment for Fuel-Grade EthanolPlatts Begins Publishing Kikeh Crude Oil OSPPlatts Suspends Japan Import Parity ValuesPlatts to Discontinue Cano Limo AssessmentsBosporus Delayed Assessment Discontinued by PlattsCME Delists Petroleum and Refined ProductsExpansion of Platts Americas Forward Curve Assessments DeferredNGX Formally Identifies Cleared Products as FuturesNGX Migration to the ICE Platform Brings in Products' Name ChangesNew Headline Format for Platts USAC Fuel Oil eWindowCME: East-West Fuel Oil Spread (Platts) Futures Months Expansion

p. 21 - 24

EEX Publishes Data for Power Generation from BiomassBRIX Launches Two New Negotiation Models

Upcoming HKMEx RMB Copper Contract Supported by Maike MetalsCME: Fertilizer Forwards in the Customer Cleared Swaps Regulatory ClassCME: Metal Forwards in the Customer Cleared Swaps Regulatory ClassCME Lists Fifth Month Lean Hog Calendar Spread OptionPlatts to Consolidate Molybdenum Assessments

CME Adds Interest Rate Swap FuturesXetra Lunches New SPDR ETFSGX’s MSCI Indonesia Index Futures Certified by CFTCFirst Dual Counter Security to Debut at HKExBM&FBOVESPA Starts Trading S&P 500 Futures Xetra Launches New Ossiam Equity Index ETFClearstream Offers Access to Philippine SecuritiesFTSE and Bursa Malaysia Introduce New Shariah Small Cap IndexICE Licenses Markit CDS Indices to Develop CDS Index FuturesICE and TRAIANA Announce Extension of ICE Link to OTC FXCFE Temporarily Postpones the Launch of S&P 500 Variance FuturesCME Introduces IR and FX Products in the Customer Cleared Swaps Regulatory Class

Argus Launches International Sulphuric Acid ServiceArgus Launches FOB Trinidad LNG PricesArgus Launches Spot CFR Turket Group 1 Base Oil Price AssessmentsCapacityBryan Sanderson Joins Argus Media BoardArgus Launches Petroleum Transportation Service Platts Introduces First Independent Price References for Eagle Ford Shale OilPlatts Launches Daily FOB Thailand Assessment for Fuel-grade Ethanol Platts MOC pages moving for LPG, Tankers & Bunkers on Dec 3Platts Introduces Ash Differential to Thermal Coal PricingKYOS Launches New Forward Curve Service for Power and Gas ZEMA Expands Its Data Coverage

ICE Supports User Defined Spread for Calendar Spread OptionsICE Cleating Members Approved by CFTC to Hold the US and Foreign Futures NYSE Euronext Launches Retail Matching FacilityMGEX Launches MGEX Information Xchange (MIX) Wall Street Journal Digital Exchange Launches Private Ad ExchangeCNBC Launches a New Online Show “Futures Now”Hong Kong Monetary Authority and Clearstream Launch Cross-border Collateral Management CooperationNYSE Technologies and ATG Target the Latin American MarketCME to Acquire Kansas City Board of Trade NYSE Euronext and Taiwan Futures Exchange Sign MoU

Environmental Markets and Weather Services p. 8 - 10Evolution Markets Hosts Renewable Energy Certificate Auction EEX Publishes the EUA Auction Calendar for 2012ICE Launches EUA and EUAA for the UK Auction ContractsEEX Runs First EUA Primary Market Auction for the Czech RepublicEEX Runs First EUA Primary Market Auction for GermanyWeather Channel to Name Winter Storms AccuWeather Enterprise Solutions Launches Redesigned WebsiteWSI Supplies Atlantic Aviation with a Complete Weather SolutionWSI Launches Weather Support Platform for Global Commodities MarketsCME Delists Certain Contract Days for the Daily EUA FuturesNOAA Opens Centre for Weather and Climate Prediction MDA EarthSat Weather Partners with EarthRisk Technologies

ZEMA Market Dashboard p. 16 - 17North American Electricity DA Prices (ICE)North American Electricity Forward Curve (ICE)Actual Temperature (AccuWeather)ICE OTC Emission Allowances Electricity Price Forward Curves (ICE)Henry Hub Forward Curve (ICE)North American Natural Gas Spot Prices (ICE)Crude Oil Brent vs WTI - Prompt-Month Contract (NYMEX) - Forward Curve (NYMEX)

November 2012

Crude oil and natural gas production in North America is booming, contributing to a massive reshaping of the global energy landscape. With these changing dynamics in energy production and supply, one can only imagine that the future for North American energy will be nothing like it is today.

The Revival of Western Oil and Gas Production – It Only Changes Everything

p. 4

datawatch Editor’s LetterNovember 2012

EditorOlga GorstenkoPhone: 778-296-4183Email: olga@ze.com

Have an idea for an article or would like to contribute to an upcoming issue? Write to us at datawatch@ze.com

Olga Gorstenko

Advertising & Vendor RelationshipsBruce ColquhounPhone: 604-790-3299Email: bruce.c@ze.com

Of all the news this month, it was hurricane Sandy that generated the most overwhelming impression. Referred to by the media as a superstorm or even the ‘Frankenstorm’, it brought destruction and despair. Not only did Sandy leave its traces on the lives of those living on the East coast; the storm also had its effect on markets and even data services.

Closure of the New York Stock Exchange, the first two-day weather-related closure since the blizzard of 1888, had a rolling effect on other trading venues and suspended equity trading on other exchanges and private brokerages. No doubt, disaster recovery became the foremost topic in the aftermath of data-related discussions. The need to have backup facilities in remote areas has become more acute. Another, not so new, issue emerged in relation to the trading practices: how high is the value of maintaining floor-trading operations? With more and more exchanges and other trading facilities moving their operations online, how long will this physical trading remain to be seen as a differential advantage? It will be interesting to see whether NYSE, the leader of the pack in equities trading, will now be more likely to follow suit and move to the digital format.

As financial markets went through some painful discoveries; physical commodities, while suffering serious setbacks, experienced slight price upsets. Unusually so, Sandy left a rather deep dent on demand as well as on supply systems. The overall destruction reduced demand dramatically as industries on the East coast are major consumers of commodities, oil being one of them. Stormy weather prevented oil tankers from enter-ing the New York harbor, which serves as the main point of entry for the East coast. This effectively cut off supplies enhanced by the closure of refineries.

Such double dipping resulted in a very moderate effect on the price of o i l : WTI daily price, reported by EIA, experienced no noticeable changes in the last week of October or after, which is not typical for a disaster of such scale.

The prices of natural gas traded at Henry Hub also remained shy of any hyperbolic moves; the prompt month contract did not show any moves that would be out of the normal range.

Such developments in oil and natural gas say one very important thing to me: prices are now driven purely by fundamental factors. Does it mean that those times of considerable price spikes and dips driven mainly by traders who never lost the slightest chance to capitalize on mass hysteria or even create one are over? Do all those checks and balances put in place by regulatory authorities actually work?

To access previous issues of ZE DataWatch, go to datawatch.ze.com

ZEMA Suite Inquiries Bruce ColquhounPhone: 604-790-3299Email: bruce.c@ze.com

Figure 1: WTI Daily Prices, EIA

Figure 2: Henry Hub Prompt Month Futures, NYMEX

Power Markets datawatch November 2012

Effective October 11 2012, the European Energy Exchange (EEX) starts publishing the generation of power from biomass as an additional category within the Transparency in Energy Markets platform. The data is reported voluntarily by Austrian companies that include Energie AG Oberösterreich Kraftwerke GmbH, Linz Strom GmbH, Tiroler Wasserkraft AG (Tiwag) and Wien Energie GmbH. The data volume comprises a capacity of approximately 50 MW and corresponds to about ten percent of the biomass plants used for generating power in Austria.

Following the increasing share of renewable energy, the expansion of the Transparency in Energy Market platform with biomass data aims to convey an overall impression of the generation situation. Several German companies are also planning to report the biomass data on the platform and are preparing for it now.

The Transparency in Energy Markets is a neutral platform for energy market data which fulfills the statutory publication requirements, and implements voluntary commitments of the market participants. At present, more than 40 companies from Germany, Austria and the Czech Republic submit data to the platform. For Transparency Report click here.

Power generation from biomass has already been reported in North American markets. The graph below shows an example of AESO.

EEX Publishes Data for Power Generation from Biomass NEW

On October 25, 2012, Brix launched two new negotiation models, Conven-tional PLD + ILBRIX Spread Contract and the Fixed Premium for BRIX Settle-ment Index Swap. The ILBRIX is the average of the Conventional BRIX Index Premium over PLD during the period between the last working day of the current month and the first two working days of the following month.

The Conventional PLD + ILBRIX Spread Contract allows for short and long positions at the average of the monthly PLD value added to the average market premium at the highest liquidity period of the month. Thus, this contract has the benefit of a completely post-fixed price. Another BRIX innovation is the Premium Swap, which consists of a combination of the Conventional PLD + Premium contract and the Conventional PLD + ILBRIX Spread contract. This allows market participants that negotiate a combination of both contracts (Premium Swap) to swap their risk profiles from fixed premium to variable and vice versa.

BRIX Launches Two New Negotiation Models

4Back to Summary *Graph created with ZEMA

Data Source - AESO*

WATCH

datawatch November 2012 Fossil Fuel Markets

CIF Med Jet Fuel Assessment Launched by Platts

On October 1, 2012, Platts launched a new assessment for CIF Mediterranean jet fuel for cargoes of 30,000 mt. The assessment reflects a freight differential to the CIF Northwest Europe assessment. The lump sum differential of the Platts Persian Gulf to Northwest Europe route, versus the Persian Gulf to the Mediterranean will be used to calculate the freight values.

NEW

Platts Launches Daily FOB Thailand Assessment for Fuel-Grade Ethanol

On November 5, 2012, Platts launched a new daily FOB Thailand assessment for fuel-grade anhydrous ethanol (3,000-5,000 cu m), based on information sourced from the market up to the end of the Market-on-close assessment processes at 4:30 p.m. Singapore time. Complementing the current CIF Philippines and FOB Singapore assessments, the new assessment will reflect cargoes loading 15-30 days from the date of publication; the undenatured anhydrous bioethanol used in the assessment will conform to Philippines National Standard specifications.

NEW

5Back to Summary

Platts Begins Publishing Kikeh Crude Oil OSP

Effective October 9, 2012, the official selling price (OSP) for Malaysia’s Kikeh crude oil, as published by Petronas since September, is published by Platts on Platts Global Alert page 1062 on a monthly basis. The OSP will carry the code AAWXZ00.

NEW

Platts Suspends Japan Import Parity Values

From November 1, 2012, databasing of import parity values for gasoline, kerosene and gasoil in Japan is suspended by Platts in its market assessments database. These values have been generated since April 2002 and were associated with Platts Japanwire until its suspension in April 2005. Since then, the values have only been available in Platts’s databases. - AAJOK00 Gasoline CIF Japan 14-29 Days - AAJOL00 Kerosene CIF Japan 14-29 Days - AAJOM00 Gasoil 0.05 CIF Japan 14-29 Days

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Bosporus Delayed Assessment Discontinued by Platts

From November 1, 2012, the Bosporus delayed combined days assessment, which appears in the Platts price database under code AAQGW00, are discontinued by Platts. Individual Northbound and Southbound delays will continue to be displayed in the Dirty Tankerwire.

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Platts to Discontinue Cano Limo Assessments

Platts proposes to cease assessing Colombian Cano Limon crude oil on an FOB Colombia basis from January 2, 2013. This is due to a decline in produc-tion, as well as producers not wanting to export cargoes after October 2012. The assessment is currently published on Platts Global Alert page 280, Platts Latin American Wire and the Platts price assessment database. A Cano Limon crude oil assessment representing the value of crude oil in relation to comparable, regional crude oil grades, will continue to be published by Platts until December 28, 2012.

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CME Delists Petroleum and Re�ned Products

On October 15, 2012, NYMEX delisted nineteen petroleum and refined products which had no open interest. The product rule chapters and terms and conditions contained in Rule 588.G. (for the contracts listed on CME Globex only) and in the Position Limit, Position Accountability and Reportable Level Table located in the Interpretations and Special Notices Section of Chapter 5 (Trading Qualifications and Practices) of the NYMEX Rulebook were removed from the Exchange Rulebook.

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CME Code Description Venue LH New York Harbor Ultra-Low Sulfur Diesel (ULSD) Futures CPC, Glbx, NXPIT LR Gulf Coast Gasoline Futures CPC, Glbx, NXPIT LU Gulf Coast Ultra Low Sulfur Diesel (ULSD) Futures CPC, Glbx, NXPIT HZ Singapore Fuel Oil 380 cst Futures CPC, Glbx ULS NY ULSD Financial Futures CPC, Glbx, NXPIT ULO NY ULSD Option CPC, Glbx, NXPIT ULE NY ULSD European Option CPC, Glbx, NXPIT UCF NY ULSD Crack Spread Swap Futures CPC, NXPIT RVU RBOB vs. NY ULSD Swap Futures CPC, NXPIT USF NY ULSD Calendar Swap Futures CPC, NXPIT UBS NY ULSD BALMO Swap Futures CPC, NXPIT ULF NY ULSD Last Day Financial Swap Futures CPC, NXPIT UAO NY ULSD Average Price Option CPC, NXPIT UCA NY ULSD Calendar Spread Option CPC, NXPIT UCB NY ULSD Calendar Spread Option CPC, NXPIT UCC NY ULSD Calendar Spread Option CPC, NXPIT UMM NY ULSD Calendar Spread Option CPC, NXPIT UCZ NY ULSD Calendar Spread Option CPC, NXPIT UCO NY ULSD Crack Spread Option CPC, NXPIT UCP NY ULSD Crack Spread Average Price Option CPC, NXPIT UBC NY ULSD Crack Spread BALMO Swap Futures CPC, NXPIT LI LLS (Argus) Trade Month Swap Futures CPC, NXPIT A0 Argus Sour Crude Index ("ASCI") Financial Futures CPC, Glbx, NXPIT

Expansion of Platts Americas Forward Curve Assessments Deferred

Technical issues have caused Platts expansion of its forward curve assess-ments for Americas crude and refined products swaps to be deferred from October 1 to December 3.

Included in the expansion is the addition of eight calendar months to the existing curves for US Gulf Coast unleaded gasoline, heating oil, jet fuel, ULSD and Atlantic Coast jet fuel. Four additional calendar months will also be added to the existing curves for US Gulf Coast 3% sulfur residual fuel oil and Atlantic Coast 1% sulfur fuel oil. NYMEX RBOB and heating oil frontline swaps will be expanded to 24 calendar months, and NYMEX WTI frontline swaps to 36 calendar months.

New forward curve assessments for Dubai and Brent frontline swaps at the Americas Market at close of 3:15 p.m. Eastern time will also be launched by Platts, and will comprise 36 calendar months.

EDIT

NGX Formally Identi�es Cleared Products as Futures

On October 5, 2012, Natural Gas Exchange Inc. (NGX) announced that its derivatives clearing organization (DCO) will clear all NGX energy products as futures contracts under US regulations. This change comes into being because of the Dodd-Frank Act that will eliminate the NGX status of an Exempt Commercial Market effective at the end of 2012, which prompted NGX to apply to the CFTC to be recognized as a Foreign Board of Trade. The anticipated date for these changes to be effective is December 31, 2012. Now, the contracts will be regarded as either futures or swaps. NGX plans as an FBOT to continue clearing contracts as a derivatives clearing organiza-tion. The underlying benefit is that it ensures NGX’s continued compliance with the US requirements and brings Canadian and the US regulations into alignment.

NGX currently offers products and clearing services at over 65 natural gas, crude oil and power locations in North America.

The impact of these transitions and the planned changes are as follows:NGX Exchange

Futures: NGX will formally identify all of NGX’s Canadian cleared products as “Futures” in its rules on its trading platform and clearing house to clearly reflect their regulatory treatment. Once NGX is registered as an FBOT, its Canadian cleared products will be “Foreign Futures” under the U.S. regula-tory framework and will maintain their current status under Canadian regula-tions. Soon, these products will be named formally as “Futures” and will only be listed as cleared.

Forwards: NGX will aid in the matching of forward contracts in physical crude oil products. These will be listed in a separate pricing stack from futures. To forward the matched contracts to clearing house for clearing, the market participants will have to agree to submit their forward contracts to NGX through an Exchange of a Future for a Related Product (EFRP).

NGX Swap Execution Facility (SEF): Once the final rules are effective, NGX wants to register with the CFTC as a Swap Execution Facility to enable NGX to list swaps for centralized training that need not be cleared.

NGX Clearing Facility and DCO, Broker Executed Trades and other bilateral transactions won’t be undergoing any change.

According to Peter Krenkel, Chief Executive Officer for NGX, “NGX remains focused on providing fair efficient markets that ensure a level playing field, best price execution and the benefits of central counterparty clearing. We believe this clarification retains current liquidity and serves the important goal of eliminating regulatory uncertainty for our customers."

datawatch November 2012 Fossil Fuel Markets

For a full list of name changes click here

6Back to Summary *Graph created with ZEMA

EDIT

NGX Migration to the ICE Platform Brings in Products Name Changes

Effective November 1, 2012, the official names of the Natural Gas Exchange (NGX) natural gas price indices that appear in the Canadian Gas Price Reporter (CGPR) will change. The changes are taking place due to the forthcoming migration of NGX products to the Intercontinental Energy Exchange (ICE) trading platform. The new names will be standardized so they can be clearly identified by the locations and onscreen products on which the indices are based.

EDIT

New Headline Format for Platts USAC Fuel Oil eWindow

Effective October 5, 2012, a new eWindow technology was launched by Platts, requiring the headline filters in Platts Global Alert to be amended in order to capture the new headline format. The new technology facilitates Platts’s US Atlantic Coast physical fuel oil market on close assessment processes. The new filters in Platts Global Alert will publish new headlines which will read as follows:

- Platts USAC FO 3.0S Dlvd Basis NYH Laycan, uyer 1” bids Delivery Window 100% USAC 3.0S Flat Price $00.00 for 120-120

The old headline reads:- USAC Resid: 3.0%S: Seller 1 offers $00.00/bbl, for 120mb +/-10%, seller's option, dlvd basis NYH Delivery Window 3.0%S Platts spec...

EDIT

CME: East-West Fuel Oil Spread (Platts) Futures Months Expansion

Effective November 4, 2012, NYMEX expanded the listing of contract months for the East-West Fuel Oil Spread (Platts) futures contract for trade date November 5, 2012. The listing schedule for the futures contract, which is currently listed for the current year and next two consecutive calendar years, shall be expanded to the current year and the next three (3) consecutive calendar years on the NYMEX trading floor and CME ClearPort. The contract will continue to be listed on CME Globex for 18 consecutive months. The trading venues are CME ClearPort and the NYMEX trading floor.

EDIT

CME Code Description EW East-West Fuel Oil Spread (Platts) futures contract

Data Source - CME*

datawatch November 2012

Upcoming HKMEx RMB Copper Contract Supported by Maike Metals

Agriculture, Forestry and Metal Markets

On October 11, 2012, a memorandum of understanding (MOU) was signed between Hong Kong Mercantile Exchange (HKMEx) and Maike Metals International Limited. The intention is to promote China’s base metal trading sector among international market participants. Maike Metals will assist HKMEx in promoting its upcoming renminbi-denominated copper futures contract as an exchange strategic partner.

HKMEx plans to launch gold and copper contracts denominated in renminbi, followed by other products in precious and base metals, as well as energy, agriculture, and commodity indices.

Maike Metals will be using HKMEx’s RMB copper futures in hedging its physical export, import and entrepot trading activities. They will co-develop a copper price benchmark for use by the industry in the Asian trading time zone, and develop futures contracts in other base metals. In the long run, they will be developing an effective hedging and price platform whereby physical delivery of HKMEx’s copper and other base metals contracts will be conducted through bonded warehouses in mainland China.

Barry Chung, HKMEx Chairman said, “With the signing of this MOU today, HKMEx takes yet another major step in its development. We welcome Maike Metals as our newest Industry Associate, and look forward to cooperating with them closely in contributing to the continued development of base metals trading in China, beginning with the development of a copper price bench-mark for the Asian time zone.”

CME Lists Fifth Month Lean Hog Calendar Spread Option

On November 4, 2012, CME listed fifth month on Lean Hog calendar spread options (CSO) for the following trade date. In addition, a new synthetic future waslaunched for the options on fifth month Lean Hog future calendar spread.

Settlement prices are published for the new synthetic future to support a customer options pricing model. With this launch, the listing cycle for Lean Hog Calendar Spread Options is expanded to list all combinations of the first six listed futures maturities.

Currently, all combinations of the first five futures maturities are in place. This contract is listed with, and subject to, the rules and regulations of CME.

For contract specifications click here

7Back to Summary

WATCH

CME: Fertilizer Forwards in the Customer Cleared Swaps Regulatory Class

On November 5, 2012, CME’s Cleared OTC Customer Sequestered regula-tory class was replaced by a new class called Customer Cleared Swaps for some fertilizer-related products forwards:

CME Code Description UFN Urea (Granular) FOB US Gulf Swap UFU UAN FOB NOLA Swap DFT DAP FOB Tampa Swap DFL DAP FOB NOLA Swap UFZ Urea (Prilled) FOB Yuzhny Swap UFG Urea (Granular) FOB Egypt Swap

CME: Metal Forwards in the Customer Cleared Swaps Regulatory Class

On November 5, 2012, CME’s Cleared OTC Customer Sequestered regula-tory class was replaced by a new class called Customer Cleared Swaps for three metal forwards:

CME Code Description COMEX GB COMEX GB COMEX GBC COMEX GBC NYMEX LSF NYMEX LSF

CME Code Description B0E Lean Hog Calendar Spread Options: 5th Contract Back

The following graph shows similar product for Lean Hog Spread Option. The product is Lean Hog option with a strike price of 90000.

Data Source - CME*

EDIT

EDIT

EDIT

Platts to Consolidate Molybdenum Assessments

Effective January 2, 2013, Platts implements adjustments to the methodology for its Weekly Molybdenum Dealer Oxide assessment to reflect the weekly average of the Daily Dealer Oxide assessment. A weekly average, which will be published on Fridays, will include a weekly average low-high range as well as a mid-point/mean. A monthly average will be published on the last business day of each month, shortly after Platts close the assessment period for the Daily Molybdenum Oxide assessment at 1 p.m. UK time. A monthly average of the Dealer Oxide assessment reflecting both the mean and the average of the low end of the daily assessment ranges will continue to be published.

Closing at 4:30 p.m. UK time each day, the daily moly assessment will incorporate dealer-to-consumer, producer-to-dealer, dealer-to-dealer and producer-to-consumer spot business in warehouse European ports, delivered US and CIF Japan main ports, CIF South Korean ports and CIF Nhava Sheva/Mumbai, India.

EDIT

*Graph created with ZEMA

8Back to Summary

datawatch November 2012 Environmental Markets and Weather Services

Evolution Markets Hosts Renewable Energy Certi�cate Auction

On October 23, 2012, Evolution Markets Inc. announced it would conduct an auction of Renewable Energy Certificates (RECs) on behalf of the Massachu-setts Clean Energy Center (MassCEC) on November 06, 2012. As a response to historic high prices in New England RECs, the auction aims to offer needed supply to stabilize the market. For this auction, MassCEC plans to offer 7,884 Vintage 2012 Massachusetts Class I Renewable Certificates generated in the first and second quarters of 2012.

The auction features RECs generated by four different renewable energy projects; these are the Ameresco Chicopee landfill gas-to-energy facilities 1, 2, 3, and 4, the Green Affordable Housing Initiative Photovoltaic Installation Aggregation project, the Fairhaven Wind LLC facility, and the Kingston Wind Independence LLC facility.

Using Evolution Markets’s proprietary online auction platform, EvoAuc-tionSM, participants in the auction may submit bids using an on-screen bidding platform administered by Evolution Markets, in addition to submitting telephone bids.

NEWICE Launches EUA and EUAA for the UK Auction Contracts

On October 29, 2012, Intercontinental Exchange (ICE) announced that ICE Futures Europe will introduce two new emissions allowance contracts under the EU Emissions Trading System on behalf of the UK Government’s Depart-ment of Energy and Climate Change (DECC).

ICE Futures Europe will introduce EU Allowance (EUA) UK Auction Contract and the EU Aviation Allowance (EUAA) UK Auction Contract. The new UK Auction emissions products will be spot contracts and represent a lot size of 500 Phase III EUAs and EUAAs respectively.

The EUAAs to be delivered in respect of the EUAA auctions will be those EUAAs to be auctioned on behalf of the UK Government Department of Energy and Climate Change pursuant to Article 3d(1) of Directive 2003/87/EC as amended, which provides for the auctioning of 15% of allowances covered by Chapter II of that Directive during 2012.

The EUA auctions are scheduled for November 21, 2012 and December 5, 2012. It is expected that 6.5 million EUAs will be auctioned on November 21, 2012 and 5.758 million EUAs on December 5, 2012.

The EUAA auctions are scheduled for November 26, 2012 and December 10, 2012. It is expected that each date will auction approximately 3.5 million allowances.

The auction calendar and auction volumes for both EUA and EUAA are subject to final approval by the European Commission.

Emissions futures volumes have experienced strong growth since the first contract was launched in 2005, with annual ICE emissions futures and options volumes achieving a record 7.57 million contracts in 2011 (7,570 million tonnes of CO2). Year to date volumes in 2012 for ICE emissions futures and options products are 6.99 million contracts, an increase of 15% on the same period last year. As at October 26, 2012, open interest was 1.91 million contracts.

The following graph shows prices and volume of trade of ICE ECX EUA and EUAA futures for the contract month of December 2012. The ICE ECX EUA and EUAA futures are trades of emission allowances among the account holder from the EU National Registries.

NEW

EEX Publishes the EUA Auction Calendar for 2012

On October 30, 2012, The European Energy Exchange (EEX), the European Commission and the 24 participating Member States determined the auction calendars for the transitional common auction platform for 2012.

In its capacity as the transitional common auction platform, the EEX conducts the first EUA auction on November 13, 2012, and the first auction of aviation allowances, EUAA, on November 21, 2012 on the Spot Market. The EUA auctions will be held each Tuesday and Thursday until December 18. Information on the auctions and auction calendars, including details on the bidding windows and the volumes to be auctioned, is made available by the EEX on www.eex.com.

The auction calendars are subject to review by the EEX on a weekly basis until all auctioneers appointed by Member States are fully operational.The 2013 auction times will be announced at a later date.

NEW

Data Source - ICE*

EEX Runs First EUA Primary Market Auction for the Czech Republic

On October 11, 2012, the European Energy Exchange (EEX) successfully held its first primary market auction of EU allowances (EUA) on behalf of the Czech Ministry of the Environment. The action comprised unallocated volumes from the Czech Republic’s new entrants reserve (NER) for the second trading period of the EU emissions trading system (2008-2012).

The volume of one million EUA was auctioned off as planned on the spot market. The total amount of bids was 5,314,000 EUA. Participants demanded more than five times the auction volume. Fourteen companies took part, the price was determined at EUR 7.59 per EUA. At the time of the auction, the reference price in secondary trading on the EEX Spot Market amounted to EUR 7.61 per EUA.

The total volume of EUAs sold through the EEX sport market is around two million. The second auction date is yet to be coordinated with the Czech Ministry and will be announced in due time.

NEW

*Graph created with ZEMA

9Back to Summary

datawatch November 2012 Environmental Markets and Weather Services

Weather Channel to Name Winter Storms

On November 8, 2012, the Weather Channel will start naming winter storms to make the storms easier to identify and to raise awareness among those in their paths. At The Weather Channel, a team of meteorologists decides which storms get names based on factors like expected snow depth, wind speed and if there is a significant disruption to road and air travel within three days.

NEWWSI Launches Weather Support Platform for Global Commodities Markets

On October 9, 2012, Weather Services International (WSI) announced the launch of its enhanced weather decision support platform, WSI Trader. This one-of-a-kind platform offers an in-depth 15 day forecast, including dynamic alerts and notifications. By providing first-to-market, expert, key data in a single unified portal, users will have the ability to:

- Interpret the most recent WSI forecast and how it has changed- Assess precipitation forecasts in major power and hydro-electric regions- Access 15 days of forecast data- Visualize weighted model weather patterns for each power/gas region and country in graphical and tabular formats

North American and European energy trading markets will be supported initially by the interactive platform; however, plans for expansion are in place to include Asian and Australian markets, as well as additional commodity markets. The transition to the new WSI Trader platform aims to be completed within nine months.

The following graph shows 10 days Max Temperature Forecast for Houston, TX, from WSI for the past year.

NEW

Data Source - Accuweather*

WSI Supplies Atlantic Aviation with a Complete Weather Solution

On October 24, 2012, Weather Services International (WSI) announced that Atlantic Aviation, the largest Fixed Based Operator chain in the United States, will provide WSI Pilotbrief Optima to pilots in each of its flight planning offices free of charge. WSI Pilotbrief Optima provides on-demand aviation weather coverage, high-impact visualization and accurate forecasts. Its interactive content allows pilots to overlay their flight plans with weather layers to give the clearest picture for flight planning.

WSI Pilotbrief Optima’s suite of high definition radar depiction products, satellite imagery and lightning alerting tools are some of the enhanced features that pilots around the world rely upon for safer and more efficient flight operations.

NEW

Data Source - WSI*

CME Delists Certain Contract Days for the Daily EUA Futures

On October 1, 2012, NYMEX delisted contract days through October 19, 2012, for the Daily European Union Allowance (EUA) futures that had no open interest. This action was taken because of the implementation of upgrades to the EU Emissions Trading Scheme’s Union Registry. Starting on September 27, 2012, operations of the Union Registry were partially suspended; although, registry users continued to have access to their registry account with no possibility to initiate transfers or modify personal details. Additionally, access to the Union Registry and its registry accounts was completely suspended until October 2, 2012.

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AccuWeather Enterprise Solutions Launches Redesigned Website

On October 22, 2012, AccuWeather Enterprise Solutions launched a new website featuring forecasts, weather warnings, custom business analytics and other weather-related data products, for worldwide locations. The new site aims to deliver critical weather information and services on a global basis, as well as meteorological consulting services to large enterprises. You can view the new website at www.enterprisesolutions.accuweather.com/

The following graph shows 15 day forecast weather data for three cities, Calgary, New York and London.

NEW

MDA EarthSat Weather Partners with EarthRisk Technologies

On October 9, 2012, a new partnership between MDA EarthSat Weather and EarthRisk Technologies was announced that will see MDA EarthSat Weather distribute EarthRisk’s weather platform, TempRisk 4.0. TempRisk 4.0 is used by traders in natural gas, power and agriculture to detect both hot and cold weather patterns up to 40 days before they occur. The platform also includes a comprehensive empirical forecast model that merges the most important signals for a precise region and forecast window, improving its accuracy considerably.

WATCH

datawatch November 2012 Environmental Markets and Weather Services

NOAA Opens Centre for Weather and Climate Prediction

On October 15, 2012, the federal government officially opened the NOAA Centre for Weather and Climate Prediction at the University of Maryland. Scientists, forecasters and researchers at the center are constantly looking for new ways to use satellite information to safeguard the environment, and ultimately to protect lives. The center uses environmental models developed and managed in the building to provide a wide range of services, including expert weather, water and climate forecasts. NOAA satellites track and monitor storms and hurricanes, ocean currents, hazardous materials in the atmosphere, and volcanic ash and smoke plumes from wildfires, then uses the information it has gathered to make predictions and forecasts.

The center will also run a number of collaborative programs between researchers, forecasters, scientists and the University of Maryland faculty and students. University of Maryland students will benefit from a partnership with researchers at the center that will help them to become certified meteo-rologists and oceanographers. Foreign meteorologists and scientists will be offered assignments under a visiting scientist program, encouraging the mutual sharing of ideas and experience between U.S. and international researchers, academics and applied scientists.

WATCH

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For a complete list of contracts click here

Dodd - FrankZ E M A S o l u t i o n

C/ETRM Integration | Limit MonitoringRecord Keeping | Position Reporting Regulatory Compliance

ZE has joined forces with Willis Group Consulting (WGC) to o�er a comprehensive Dodd-Frank Solution that meets the compliance needs of the energy, commodities and �nancial industries. This solution facilitates the Extract - Transform - Load (ETL) process for organizations with data retention and reporting requirements mandated under the Dodd-Frank Act. Together, ZE’s award winning ZEMA technology and WGC’s

deep industry and regulations knowledge deliver a comprehensive Dodd-Frank reporting and data management solution.

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datawatch November 2012 FX, Interest Rates, Credit and Equity Indexes

CME Adds Interest Rate Swap Futures

Effective November 11, 2012, CME added USD Interest Rate Swap futures for the trade date November 13, 2012. The USD Interest Rate Swap futures are listed for quarterly expiration on IMM dates, for physical delivery of OTC US dollar interest rate swaps at key terms to maturity (2, 5, 10, 30 years). Contracts are quoted on a price basis, with a fixed coupon for each contract that is set by the Exchange when the contract is listed for trading. The holder of a long futures position will become the fixed rate receiver and floating rate payer in an OTC interest rate swap cleared by CME Clearing at expiration.

NEW Xetra Lunches New SPDR ETF

On October 25, 2012, a new exchange-listed equity index fund issued by SPDR (State Street Global Advisors) became tradable on Xetra. This newly added equity index ETF, called SPDR Dow Jones Global Real Estate ETF, tracks stocks of corporations in the global real estate sector. This new equity index ETF gives investors an opportunity to participate in the performance of global corporations in the real estate sector. For acceptance in the reference index there must be a market capitalization of a minimum US$200 million and at least a 75% proportion of revenues derived from owning and managing real estate. This Product is offered in Deutsche Börse’s XTF segment.

NEW

SGX’s MSCI Indonesia Index Futures Certi�ed by CFTC

Effective October 2, 2012, Singapore Exchange Derivatives Trading Limited’s (SGX) MSCI Indonesia Index Futures Contract has been certified by the Commodity Futures Trading Commission (CFTC).

The MSCI Indonesia Index is a free float-adjusted market capitalization weighted index that is designed to track the equity market performance of Indonesian securities listed on the Indonesia Stock Exchange. The MSCI Indonesia Index USD is a price return index denominated in US dollars which takes into account price performance. The MSCI Indonesia Index is constructed based on the MSCI Global Investable Market Indices Methodol-ogy, targeting a free float-market capitalization coverage of 85%.

Compliance with the requirements of the Commodity Exchange Act (Act) and the Commission’s Regulations permits the MSCI Indonesia Index Futures Contract to be offered or sold to persons in the U.S. The contract may also be made available for trading through SGX’s direct access terminals in the U.S. The SGX MSCI Indonesia Futures Contract is the first offshore futures contract providing international investors easy and efficient access to the fast-growing Indonesian market.

NEW

For contract specifications click here

First Dual Counter Security to Debut at HKEx

On October 10, 2012, Hong Kong Exchanges and Clearing Limited (HKEx) welcomed the pending October 11 listing of the first dual counter (DC) security, Harvest MSCI China A Index ETF (Harvest ETF) on the Stock Exchange of Hong Kong Limited, a wholly-owned subsidiary of HKEx.

This security offers a renminbi (RMB) counter and a Hong Kong dollar (HKD) counter for trading and settlement. These two counters have the same class and their holders of shares or units are treated equally. Counters for DC securities have different stock codes and stock short names for easy identifi-cation. Investors can generally buy or sell shares or units in the same counter of a DC security or even in another counter if their brokers offer this service.The benefit for investors is in the convenience of being able to trade in either of the currencies, while for issuers it is having a wider base of potential investors. Investors who have HKEx’s RMB Equity Trading Support Facility like Harvest ETF, but do not have RMB can use this facility to trade in a DC security.

The listing of the Harvest ETF (stock short names and stock codes: HGI MSCI CN A, 3118 and HGI MSCI CN A-R, 83118) will increase the number of RMB Qualified Foreign Institutional Investor ETFs listed on the exchange to four, the number of listed ETFs to 97 and the number of ETF managers to 20, the number of RMB products in HKEx’s markets to 48 and 47 in the securities market (41 debt securities, five ETFs, including the Harvest ETF, and one Real Estate Investment Trust, or REIT) and one in the derivatives market (RMB currency futures).

NEW

Data Source - CME*

11Back to Summary *Graph created with ZEMA

CME Code Description B1U 30-Year USD Interest Rate Swap Futures N1U 10-Year USD Interest Rate Swap Futures F1U 5-Year USD Interest Rate Swap Futures T1U 2-Year USD Interest Rate Swap Futures ZB 30-Year Treasury Bond Futures vs. 30-Year USD "Deliverable" Interest Rate

Swap Futures ZN 10-Year Treasury Note Futures vs. 10-Yr USD "Deliverable" Interest Rate

Swap Futures ZF 5-Year Treasury Note Futures vs. 5-Year USD "Deliverable" Interest Rate

Swap Futures

ZT 2-Year Treasury Note Futures vs. 2-Year USD "Deliverable" Interest Rate Swap Futures

I3 30-Year "Financial" Swap Futures vs. 30-Year USD "Deliverable" Interest Rate Swap Futures

SR 10-Year "Financial" Swap Futures vs. 10-Year USD "Deliverable" Interest Rate Swap Futures

SA 5-Year "Financial" Swap Futures vs. 5-Year USD "Deliverable" Interest Rate Swap Futures

These contracts are listed with, and subject to, the rules and regulations of CBOT.

The following graph shows the 30-Year USD Interest Rate Swap Futures for the contract month of March 2013.

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datawatch November 2012 FX, Interest Rates, Credit and Equity Indexes

BM&FBOVESPA Starts Trading S&P 500 Futures

Effective October 1, 2012, BM&FBOVESPA begins trading in the S&P 500 futures contract listed with and traded on CME. These contracts are settled in cash to the price of the S&P 500 Index futures contract. The new contracts will use three market markers (BTG, GETCO and VIRTU) selected by the exchange to guarantee liquidity in the trading. Future contracts are designed to widen the portfolio of liquid foreign products and to ease Brazilian investors’ access to U.S. market in Brazil.

NEWICE Licenses Markit CDS Indices to Develop CDS Index Futures

On October 16, 2012, Intercontinental Exchange (ICE) announced that it had licensed Markit’s North American and European corporate credit default swap (CDS) indexes, in order to develop futures and options contracts based on the Markit CDX and Markit iTraxx index families.

This development of indexes will create new exchange-traded products to manage corporate credit risk that complements existing CDS markets and provides additional tools to manage risk exposure.

The futures contracts are expected to be launched in the first quarter of 2013. Additional details on the trading and clearing CDS will be provided on a later date.

NEW

Xetra Launches New Ossiam Equity Index ETF

On October 22, 2012, Xetra launched a new index fund called Ossiam ETF World Minimum Variance NR (EUR share class) for trading. The Ossiam ETF World Minimum Variance from the Ossiam Minimum Variance Index series tracks, for the first time, the performance of the world's most liquid companies from the five regional indices of the S&P Global 1200 Index: S&P 500, S&P Europe 350, S&P TOPIX 150, S&P/TSX 60, and S&P/ASX All Australian 50. The selected shares are weighted in accordance with an optimization process that creates high risk diversification and accordingly low variance.

The product offering in Deutsche Börse’s XTF segment currently comprises a total of 1005 exchange-listed index funds.

NEW

For ISP contract specifications click here

ICE and TRAIANA Announce Extension of ICE Link to OTC FX

On October 15, 2012, Intercontinental Exchange (ICE) and Traiana, the provider of post-trade solutions, announced extension to process over-the counter (OTC) foreign exchange contracts through ICE Link.

ICE Link clients, which constitute over 550 buy-side institutions, along with dealers and prime brokers are using Traiana’s Harmony network to affirm, allocate, confirm and clear OTC FX trades.

The extension will provide affirmation, regulatory reporting and clearing connectivity for OTC FX market participants in line with G20 commitments and new regulatory requirements in the U.S., Europe and Asia.

Clive de Ruig, Global Head of ICE Link, said, "The synergies between ICE Link and Traiana Harmony create a powerful tool set for buy-side clients and will facilitate the implementation of OTC FX clearing for ICE Link clients as well as the banks and clearing brokers that serve them. We are pleased to work with Traiana on this new development."

NEW

BM&FBOVESPA Code Description ISP S&P 500 Futures Contract

Clearstream O�ers Access to Philippine Securities

On October 23, 2012, Clearstream launched a new settlement link to provide institutional investors access to Philippine securities. With this launch, the company offers settlement and custody services for all asset classes denomi-nated in the Philippine Peso for listed equities, government bonds, corporate bonds, warrants, treasury bills and depository receipts. Now international investors have an opportunity to develop post-trade solutions for the Philippine market using Clearstream as their single point of access. Standard Chartered Bank Philippines is Clearstream’s local partner and acts as sub-custodian.

NEW

FTSE and Bursa Malaysia Introduce New Shariah Small Cap IndexEffective October 8, 2012, FTSE Group launched the FTSE Bursa Malaysia Small Cap Shariah Index to complement the existing FTSE Bursa Malaysia Shariah indexes. The new index was developed in response to demand of market players who noted a lack of a benchmark to track the performance of Shariah compliant small cap companies. The index is based on FTSE’s award winning methodology that includes free float adjustment and liquidity screens and can be used as the basis of ETFs, derivatives and other index-linked products and performance benchmarks. The new FTSE Bursa Malay-sia Small Cap Shariah Index forms part of the FTSE Bursa Malaysia EMAS Shariah universe and will be calculated on an end-of-day basis.

NEW

Index Code Index Name FBMSCAPS FTSE Bursa Malaysia Small Cap Sharia Index For FTE Shariah Small Cap Index click here

CFE Temporarily Postpones the Launch of S&P 500 Variance Futures

On October 3, 2012, CBOE Future Exchange (CFE) temporarily postponed the launch of S&P 500 Variance futures, originally scheduled for October 4, 2012, until later this quarter. The new date has not yet been determined. The additional time will allow market participants to further prepare for the trading and clearing of S&P 500 Variance futures.

EDIT

For S&P Variance Futures click here

datawatch November 2012 FX, Interest Rates, Credit and Equity Indexes

CME Introduces IR and FX Products in the Customer Cleared Swaps Regulatory Class

On November 5, 2012, CME’s Cleared OTC Customer Sequestered regula-tory class was replaced by a new class called Customer Cleared Swaps. There are various regulations that apply to these products especially Legally Segregated Operationally Commingled (LSOC). CME-cleared products which when held by customers of FCM’s falls into the Cleared OTC Customer Sequestered regulatory class, remains the same as in the new Customer Cleared Swaps class effective November 5 and are the following:

- All Interest Rate Swaps - All Credit Default Swaps - FX Non-Deliverable Forwards and Cash-Settled Forwards as listed below- Commodity Index Swaps as listed below

EDIT

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CME Code Description AUDJYC Australian Dollar / Japanese Yen AUDUSC Australian Dollar / US Dollar CADJYC Canadian Dollar / Japanese Yen EURADC Euro / Australian Dollar EURBPC Euro / British Pound EURJYC Euro / Japanese Yen EURSFC Euro / Swiss Franc EURUSC Euro / US Dollar GBPUSC British Pound / US Dollar NZDUSC New Zealand Dollar / US Dollar USDBRL US Dollar / Brazilian Real USDCAD US Dollar / Canadian Dollar USDCKC US Dollar / Czech Koruna USDCLP US Dollar / Chilean Peso USDCNY US Dollar / Chinese Renminbi Yuan USDCOP US Dollar / Colombian Peso USDDKC US Dollar / Danish Krone USDHFC US Dollar / Hungarian Forint USDHKC US Dollar / Hong Kong Dollar USDIDR US Dollar / Indonesian Rupiah USDINR US Dollar / Indian Rupee USDISC US Dollar / Israeli Shekel USDJYC US Dollar / Japanese Yen USDKRW US Dollar / Korean Won USDMPC US Dollar / Mexican Peso USDMYR US Dollar / Malaysian Ringgit USDNKC US Dollar / Norwegian Krone USDPEN US Dollar / Peruvian Sol USDPHP US Dollar / Philippine Peso USDPZC US Dollar / Polish Zloty USDRUB US Dollar / Russian Ruble USDSDC US Dollar / Singapore Dollar USDSFC US Dollar / Swiss Franc USDSKC US Dollar / Swedish Krona USDTBC US Dollar / Thai Baht USDTLC US Dollar / Turkish Lira USDTWD US Dollar / Taiwan Dollar USDZRC US Dollar / South African Rand DG2 Dow-Jones UBS Commodity Index Excess Return 2-Month

Forward Swap DG3 Dow-Jones UBS Commodity Index Excess Return 3-Month

Forward Swap DGS Dow-Jones UBS Commodity Index Swap GDI S&P GSCI Excess Return Gold Index Swap RRE S&P GSCI Enhanced Excess Return Swap SE2 S&P GSCI Index Excess Return 2-Month Forward Swap SE3 S&P GSCI Index Excess Return 3-Month Forward Swap

datawatch November 2012

ICE Supports User De�ned Spread for Calendar Spread Options

Other Matters

NEWMGEX Launches MGEX Information Xchange (MIX)

On October 26, 2012, MGEX launched MIX, a public platform for registered users to anonymously discuss trading and market information within the MGEX marketplace.

To post and reply to messages on the MIX, you need to register by filling out the User Agreement at www.mgex.com. The general public has View Only Privileges to messages posted on the MIX. This website is only accessible between 7:00 a.m. and 2:30 p.m. CT Monday through Friday.

According to Todd Posthuma, Associate Director, Market Operations and IT, “MGEX developed the MIX to meet the needs and requests of our market participants, and to provide additional transparency to the marketplace. We are proud to offer this useful tool for users and the general public alike.”

The platform is exclusively meant for communication and not trading or matching.

On October 1, 2012, ICE began supporting User Defined Spread (UDS) capability for Calendar Spread Options (CSO) contracts on its electronic trading platform. The capability being added at this time supports the most frequently used UDS instruments. These are Options-only UDS instruments involving two or more CSO options that share the same commodity code and contract month, and Options-only UDS instruments involving two or more CSO options that share the same commodity code but have different contract months. However, Options-only CSO UDS instruments that involve more than one commodity code (for example, CT1 vs. CT 2) and hedged UDS instruments (involving CSO options and related futures contracts) are not supported at this time. Nevertheless, support for these types of UDS for CSO contracts will be added in the future.

ICE Cleating Members Approved by CFTC to Hold the US and Foreign Futures

NEW

On October 10, 2012, Intercontinental Exchange (ICE) announced that the CFTC had approved ICE Clear Europe’s request to allow the clearing house and its clearing members to hold both the US energy futures and foreign energy futures in the 4d(a) account for the US customers. The 4d(a) Order allows ICE to continue offering portfolio margining offsets for its energy customers, but with enhanced account segregation benefits.

The previously announced transition of swaps to listed futures at ICE Futures U.S. and ICE Futures Europe requires that these positions be commingled and portfolio-margined in the 4d(a), rather than the 30.7 account for U.S. customers.

Chuck Vice, ICE President and COO said, "This Order ensures that our energy customers can continue to enjoy the significant capital benefits of portfolio margining following our transition of cleared swaps to futures".

NEW

Wall Street Journal Digital Exchange Launches Private Ad Exchange

NEW

On October 10, 2012, an invitation-only, branded private ad exchange was launched by the Wall Street Journal Digital Network. The exchange, WSJ AUDEX, allows select advertisers and marketers access to its first-party data through real-time bidding across its flagship site, wsj.com, along with Barrons.com, MarketWatch.com and SmartMoney.com. WSJ AUDEX has teamed up with the Rubicon Project, to leverage its real-time trading platform, REVV, as well as three other buying platforms, including Proclivity, Cadreon, and Vivaki’s Audience on Demand.

NYSE Euronext Launches Retail Matching Facility NEW

On October 15, 2012, NYSE Euronext unveiled a Retail Matching Facility (RMF), that meets all pre and post trade MiFID requirements, on its European regulated cash markets. Initially, it will be applicable to component securities of the AEX, BEL20, CAC 40 and PSI20 indices and will extend to other equities trading on the NYSE Euronext European Cash Markets based on demand.This facility will be made available as of mid-January 2013 to offer price improvements to retail investors.

It will allow NYSE Euronext members, registered as a Retail Member Organi-zation, to execute their retail order flow against new price improving liquidity provided by retail liquidity providers. Moreover, they can use their existing access to the European regulated cash markets saving them from investing in new connections. The liquidity providers have to be present at the European Best Bid and Offer spread 95% of the trading day.

Retail investors’ orders will be authorized to trade with both Retail Liquidity Providers and NYSE Euronext’s central order book. The Retail Liquidity Providers’ role will be to provide buy and sell quotes in the RMF and they will trade with the retail orders exclusively according to the ordinary price-time priority principle, in full competition with other Retail Liquidity Providers and the central order book itself. To preserve order flow diversity, the retail investors’ orders will automatically trade with NYSE Euronext’s central order book if the Retail Liquidity Providers’ quotes are not competitively placed. To make it pre-trade transparent, Retail Liquidity Provider quotes will be broad-cast. These transactions are regulated market transactions and will have an appropriate identity.

Hong Kong Monetary Authority and Clearstream Launch Cross-border Collateral Management Cooperation

On October 17, 2012, the Hong Kong Monetary Authority (HKMA) and Clearstream announced that they will cooperate to provide cross-border collateral management and liquidity services in Hong Kong in the first quarter of 2013. Currently, the collateral pool of Clearstream stands at more than EUR 550 billion and consists of a wide range of asset classes eligible for collateral use that includes fixed income assets, equities and investment funds. Although financial details of the partnership were not disclosed, this partnership allows international financial institutions to use their extended pool of collaterals in Clearstream to conduct repo transactions with, and obtain liquidity from, members of the HKMA's central money markets unit.

Peter Pang, Deputy Chief Executive of the HKMA, welcomed this coopera-tion by confirming that the expanded coverage of the cross-border collateral management services would further promote development of a cost effective and efficient repo market in Hong Kong and enhance financial stability through wider use of collateral to reduce credit risk among financial institu-tions.

WATCH

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CNBC Launches a New Online Show “Futures Now” NEW

On October 2, 2012, CNBC launched a new live online show. Futures Now is entirely devoted to the futures markets, and is available only on CNBC.com. This fifteen-minute program, sponsored by CME Group and TD Ameritrade, premiered Tuesday, October 2, at 1 p.m. ET, and will live stream twice a week on Tuesdays and Thursdays at 1 p.m. ET on CNBC.com. Futures Now looks beyond the confines of equities and harnesses the power of the multi-trillion dollar futures market. This program might be a great step in educating investors on the benefits of the futures markets.

You can watch Futures Now at futuresnow.cnbc.com. Videos of the show will be available on demand following the live webcast.

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datawatch November 2012

NYSE Technologies and ATG Target the Latin American Marke

Other Matters

On October 17, 2012, NYSE Technologies announced that in collaboration with Americas Trading Group (ATG) and Bolsa Mexicana de Valores (BMV) it has built and deployed a trading infrastructure complete with global connec-tivity, risk management functionality and direct market data distribution for customers trading in Mexican markets. It’s designed to support the launch of Bolsa Mexicana's new matching engine and midpoint hidden order book with the aim of establishing Mexico as a premier Latin American investment destination. The infrastructure incorporates advanced technology developed specifically for every part of the trade cycle and will provide unprecedented accessibility, performance and risk management for trading on Bolsa Mexicana's exchanges.

Initially, this collaboration will provide:- A new co-location model for access to cash and derivatives markets (through ATG directly at the KIO Data Center).- Global connectivity for buy side, sell side and vendors from the US, Europe, Asia and other Latin American markets.- Sophisticated risk management functionality for international order routing (implemented by NYSE Technologies).- Low touch order stamping by BMV's members to settle orders.- Global Market Data distribution through NYSE Technologies Secure Financial Transaction Infrastructure with direct contracting with BMV.

On November 5, 2012, ATG and NYSE joined forces again to form a new company that will develop a liquidity center targeting the Brazilian exchange market called Americas Trading System Brasil or ATS Brasil. Utilizing trading solutions developed by NYSE Technologies, ATS Brasil will offer customers a new equities matching platform in Latin America in 2013, subject to approvals by the Central Bank of Brazil and the Brazilian Securities Commission.

NYSE and ATG are targeting Mexican and Brazilian markets in Latin America with two back-to-back announcements within three weeks. The attractive-ness of investment in emerging markets in the region on one hand along with the vision of creating a global capital markets community with cutting-edge connectivity on the other brought these two announcements to everyone’s attention. Now, it is only a matter of time before market participants can judge whether these partnerships will bring the same world class trading experi-ence, performance and reliability that is expected for emerging markets.

WATCHNYSE Euronext and Taiwan Futures Exchange Sign Memorandum of Understanding

On October 16, 2012, NYSE Euronext (NYX) and Taiwan Futures Exchange (TAIFEX) signed a Memorandum of Understanding (MOU) to explore bilateral opportunities and connect their respective customer bases in Asia, Europe and the US through NYSE Euronext’s order routing system. This alliance will be beneficial for development of the future and options markets of the exchanges. It paves the way for potential joint business initiatives between the two exchanges. Steve Wang, TAIFEX president, Dominique Cerutti, President and Deputy CEO NYSE Euronext, and executives from both exchanges finalized the MOU at a signing ceremony in Taipei.

The closer cooperation between the exchanges as a result of the agreement will provide a platform for innovation, establish a two-way order routing partnership to facilitate reciprocal order flow and explore distribution channels for key products. It will also facilitate sharing of information, best practices and resources.

According to Dominique Cerutti, President and Deputy CEO, NYSE Euron-ext, “Taiwan is a major trading market for futures and options in Asia and as a group; NYSE Euronext is actively seeking strategic opportunities that enhance our regional footprint. Our pioneering derivatives markets are complemented by our rich and unique global community, which is growing in Asia. This partnership with TAIFEX demonstrates our commitment to unlock-ing markets and developing innovative solutions that benefit our global customer base and the region.”

According to Steve Wang, President of TAIFEX, “Collaboration between exchanges is really important to respond to the rapidly changing global financial landscape. We believe TAIFEX and NYSE Euronext will leverage unique knowledge from each other’s market, and the partnership facilitating the future cross-border arrangement will benefit both exchanges and better serve the markets.”

WATCH

CME to Acquire Kansas City Board of Trade

On October 17, 2012, CME Group and the Kansas City Board of Trade (KCBT) signed a definitive agreement under which CME Group will acquire KCBT. Under the terms of the agreement, CME Group will pay $126M in cash for KCBT which will result in a special distribution of excess cash to members concurrent with closing.

CME faces one of the biggest challenges yet to its benchmark wheat, soybean and corn contracts as ICE has renewed efforts to build its agricul-tural markets business. ICE's copycat contracts of ICE's electronic exchange have garnered volume. However, CME has responded swiftly to protect its lucrative grains franchise, a mainstay of global markets for decades, by expanding trading hours to keep step with ICE in a move some floor traders have protested.

This deal is CME's first exchange purchase in five years since it wrapped up a buying spree that put the Chicago Mercantile Exchange, the Chicago Board of Trade (CBOT) and the energy-focused New York Mercantile Exchange (NYMEX) all under its control. hCME's purchase is expected to close later this year, subject to approval by KCBT shareholders and regulators. As part of the deal, CME has agreed to keep the Kansas City market's trading floor open for at least six months.

WATCH

The power prices varied across the US and the reason remained the same for the both coasts: natural gas prices. While the East Coast saw a rise in power prices mainly due to decreasing temperatures and increase in natural gas spot prices, mainly at Chicago City Gate hub, the West Coast enjoyed a decline in power prices with the drop in natural gas prices, mainly at PG&E City Gates and SoCal.

The temperatures continued their decline with the onset of winter season supporting increasing heating demands across the US. This decline however, was not uniform throughout the country: while the East Coast dealt with a steep decline in temperatures, the West Coast weather remained mild.

The ICE ECX EUA Futures contract is expected to remain stable until September 2014 when it is expected to be traded above at €8 per tonne. The monthly future settlements from December 2012 to December 2019 would be averaged at €8.70 per tonne.

The contracts are physically settled and delivered by the transfer of EU Allowances from a seller's account to a buyer's account in a national registry. ICE Clear Europe acts as central counter party to all trades.

Monthly analytics for Power, Natural Gas, Crude Oil and Environmental markets. Graphs prepared with ZEMA.

North American Electricity DA Prices (ICE)

Actual Temperature (AccuWeather)

Actual Temperature (AccuWeather)

ZEMA Market Dashboard datawatch November 2012

ECX EUA Futures (ICE)

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ZEMA Market Dashboard

With unchanged fundamentals on the long term outlook, ICE Henry Hub natural gas futures remained at approximately the same level with only 1% change on the price compared to last month.

With the winter weather, the natural gas spot prices are set to reach/exceed $4 price point. Cold weather was causing bigger than expected storage withdrawals thus leading to the price increase of around 5% on Thanksgiving weekend.

Over the past year, prompt month contracts for the WTI and Brent crude oil have been moving in an almost identical pattern while WTI consistently remained below Brent due to a secure supply.

In November 2012, the price spread between the two light sweet crudes sat just above 20 USD/Bbl, the highest spread of the year. The sharper decline in WTI prices was due mainly to an increasing supply in the US and reduction of US oil demand because of Hurricane Sandy. According to the OPEC estimates, overall decline in oil prices might be explained by the increase of 1.01 MMBbl/d in October. Concerns over the European economy caused a slower decline in Brent prices despite a higher global supply.

Reduction of net long positions, pessimistic demand outlook and significant crude stocks in the US (crude inventories currently stand at around 43.4 MMBbl, some 35% higher than a year ago) are the contributing factors behind the steady decline of Brent-WTI spread.

Perhaps, the most important factor is the expansion of the Seaway pipeline in 2013 from 150 TBbl/d to 400 TBbl/d, which will increase flows out of Cushing directly to the Gulf Coast. All of the domestic crude reaching the coast will relieve the Cushing stockpile, thus supporting WTI, as well as applying downward pressure on rival imported grades, which are priced against Brent. As a result, the Brent-WTI spread is expected to narrow. Also, the increasing trend in US shale oil production will impact WTI prices, consequently affecting the spread.

Monthly analytics for Power, Natural Gas, Crude Oil and Environmental markets. Graphs prepared with ZEMA.

Henry Hub Forward Curves (ICE)

North American Natural Gas Spot Prices (ICE)

Crude Oil Brent vs WTI

Prompt-Month Contract (NYMEX)

datawatch November 2012

Forward Curve (NYMEX)

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datawatch

Argus Launches International Sulphuric Acid Service

News from Data VendorsNovember 2012

London, 25 October 2012. Global energy and commodity price reporting agency Argus has launched a new weekly sulphuric acid pricing and analysis service, Argus FMB Sulphuric Acid. With a range of reports covering regional and international fertilizer markets, available in English and Russian, Argus offers the most extensive fertilizer coverage of any publisher.

The sulphuric acid market is set to grow in the coming years to accommodate increasing demand from the metal leaching, chemical and fertilizer industries. The new weekly pricing report is essential for anyone with exposure to this growing yet opaque market. It is produced by a team of specialist market editors in London as well as Argus’ global network of correspondents.

Sulphuric acid prices are driven primary by the trading of smelter acid, which accounts for around 30% of global production. The use of sulphur-based sulphuric acid, representing 60% of world production, for phosphate fertilizer manufacture also plays an important role in establishing acid demand and price levels. Argus FMB Sulphuric Acid includes nine new price assessments for Latin and North America, northern and southern Europe, Africa and Asia. A fundamentals section analyses the impacts of metals and sulphur supply, use in leaching projects, metal prices and fertilizer demand. The new report also includes information about sulphuric acid plant shutdowns and curtail-ments, spot freight rates for nine key routes, trade statistics and full market commentary.

“Argus FMB Sulphuric Acid is a welcome addition to our fast growing portfolio of fertilizer services” Argus Media chairman and chief executive Adrian Binks said. “The new service will add much needed transparency to the interna-tional sulphuric acid markets which are so important both in fertilizer produc-tion and in the metals industry.”

Argus already publishes price assessments for the international fertilizer markets in Argus FMB Ammonia, Argus FMB Nitrogen, Argus FMB Potash, Argus FMB Phosphates and Argus FMB Sulphur.

Request more information about Argus FMB Sulphuric Acid

Argus Launches FOB Trinidad LNG Prices

London, 15 October 2012 .Leading energy and commodities reporting organisation Argus has expanded its suite of global liquefied natural gas (LNG) prices to include the Americas with the launch of Trinidad and Tobago free on board (FOB) price assessments. The launch is in response to growing spot trade of LNG from Trinidad and Tobago to an ever increasing range of destinations.

The new fob price assessments are designed to capture LNG trade from Trinidad and Tobago. They cover cargoes loading in two forward half-month periods — the second and third full half-month periods from the date of assessment. Argus’ Trinidad and Tobago market coverage complements the Argus LNG Daily report’s existing suite of Asia-Pacific, west African and European spot price assessments, market commentary and global netback pricing.

“Trinidad and Tobago is no longer just a supplier to its traditional term contract buyers such as the US and Spain,” Argus Media chairman and chief execu-tive Adrian Binks said. “We have seen Trinidadian deliveries arriving in areas as diverse as northeast Asia, China, India, the Middle East, southern Europe, northwest Europe and South America over the last 18 months. Trinidad and Tobago fob prices will be a key tool in valuing the growing global LNG trading complex.”

The Argus LNG Daily report provides spot price assessments for Asia-Pacific, the Middle East, west Africa and Europe, information about shipping movements, market-related news and analysis. The report has been carefully designed to provide global LNG market participants with the critical insights and key LNG statistics and data needed to stay ahead of market develop-ments, as well as to help shape commercial strategies.

Argus Launches Spot CFR Turket Group 1 Base Oil Price Assessments Capacity

Singapore, 12 October 2012. Global energy reporting agency Argus has launched assessments for cfr Turkey Group 1 base oil prices. These are the first assessments for spot delivered base oil prices for the Turkish market.The assessments strengthen Argus’ coverage of the Black Sea and global base oil markets, and highlight the interconnectivity and increasing interna-tionalization in these markets.

Turkey is a major lubricant blender and consumer, with automobile sales growth of 14pc in 2011 and industrial production that has grown every month since the end of 2009. Turkey is one of the world’s largest base oil importers. Its key supplies have traditionally come from Europe, Russia and the Mideast Gulf. But the country is importing more frequently from other markets, such as North and South America, India, Taiwan and South Korea.

With these new price assessments, Argus provides a pricing tool for spot and term cargoes from an increasingly diverse number of sources.

“These new assessments will facilitate arbitrage trade to a key and growing market,” Argus chairman and chief executive Adrian Binks said. “The assess-ments illustrate the changing dynamics of the base oils market and the importance of reliable price information in managing and taking advantage of these changes.”

The new assessments are published weekly in Argus Base Oils, a global report covering base oil prices in key markets.

Argus is holding a base oils conference in Turkey in March 2013. The event will explore further Turkey’s role and significance in the regional and global base oils market.

Bryan Sanderson Joins Argus Media Board

London, 26 October 2012. Global energy and commodity price reporting and news agency Argus Media has appointed Bryan Sanderson to its board as a non-executive director.

"We are very pleased to welcome Bryan to the Argus board," Argus Media chairman and chief executive Adrian Binks said. "His more than 35 years of experience in the energy, chemicals and financial sectors will be of consider-able benefit to Argus as we continue to develop must have information for the industries we serve. We look forward to benefiting from his insight and knowl-edge."

Bryan is currently non-executive chairman of Cella Energy and an emeritus governor of the London School of Economics. He was chairman of Standard Chartered bank between 2003 and 2006 and was chairman of Northern Rock in 2007-2008.

Following two years voluntary service with the United Nations Association in Peru, Bryan started his career at BP in 1964 and held a variety of positions before being appointed chief executive of BP Chemicals in March 1990 and a managing director of BP in April 1992, posts which he held until he retired in September 2000. During this period he served as a non-executive director of Corus (formerly British Steel).

"I am looking forward to working with Argus," Bryan Sanderson said. "Argus has an excellent reputation in the energy and financial sectors and I am excited to be part of such a rapidly expanding company, which offers a growing range of essential price information, news and analysis services."

datawatch

Argus Launches Petroleum Transportation Service

News from Data VendorsNovember 2012

Houston, 28 September 2012. Global energy and commodity price reporting agency Argus has launched a dedicated petroleum transportation service for North American markets. The new weekly report, Argus Petroleum Transpor-tation North America, provides unique market data and intelligent analysis of the increasingly complex market to move crude, refined products, and gas liquids by rail, barge, tanker and pipeline.

Growing North American petroleum production, particularly from onshore shale and tight oil formations spanning the continent, as well as oil sands projects in western Canada, is reshaping infrastructure at a rapid pace. Companies are scrambling to build or repurpose pipelines. Alternative transportation such as rail has become commercially viable because of commodity price disparities and because of the wide dispersal of shale discoveries.

Output is rapidly rising in areas new to large-scale petroleum production. Oil produced from the Eagle Ford shale of south Texas is moving by Jones Act tanker to the Atlantic coast. Railcars are shipping oil from the Bakken shale of North Dakota to the three main US coastal regions. Numerous projects are seeking to absorb growing northeast US ethane production, including export facilities and a proposed large petrochemical plant in Pennsylvania.

Companies bringing production to market must consider factors such as rail diesel costs, railcar availability and lease rates, access to US Jones Act-compliant tankers and space on pipelines, which often ration capacity. The new Argus service assesses rail rates, railcar lease costs, and barge and tanker rates on the major and emerging transportation routes. In-depth survey articles and news stories cover the rapidly changing infrastructure environment throughout North America.

”We are glad to add Argus Petroleum Transportation North America to our range of energy and transportation services. We have worked closely with the industry to develop a service that can meet the growing need for market data and analysis in the North American petroleum transportation sector,” Argus Media chairman and chief executive Adrian Binks said.

Request more information about Argus Petroleum Transportation North America.

The following graph shows the spot price for different US Petroleum product by different delivery Method as reported by Argus.

Platts Introduces First Independent Price References for Eagle Ford Shale Oil

Platts launched the first independent daily price assessment of crude oil on October 16, produced from the Eagle Ford, Texas shale formation. The new assessment is called the Platts Eagle Ford Marker.

The new assessment, Platts Eagle Ford Marker, will reflect the value of a median 47-API Eagle Ford crude barrel, based on the crude’s product yields and Platts product price assessments, adjusted for U.S. Gulf Coast logistics. "We're taking a pioneering approach to an unconventional oil," says Suzanne Evans, senior manager for the Americas price group at Platts. “This method-ology provides a products yield-based assessment for Eagle Ford crude of normal properties. This will help the market establish a benchmark value for Eagle Ford, despite the stream’s inherent variability.”

Simultaneously, Platts is also launching a daily average of Eagle Ford crude postings from midstream companies to serve as a basis of comparison, and a differential for this daily postings value relative to the Platts Eagle Ford Marker.

The Platts Eagle Ford Marker assessment will be published in real-time news service Platts Global Alert pages 214 and 260 and in the end-of-day data feed Platts Market Data code: RU.

For more details on this news item please visit http://www.platts.com/PressReleases/2012/101612/No?WT.mc_id=&WT.tsrc=Eloqua

Platts MOC Pages Moving for LPG, Tankers & Bunkers on Dec 3

As part of on-going work to update and repaginate Platts Global Alert, please note the following Market-on-Close (MOC) assessment process page moves which take effect from December 3.

- Platts will move its LPG MOC on its LPG add-on information service (PGL) from PGL page 468 to PGL page 7. - Platts tanker market data will move to PGA page 6, from its current location on PGA page 953. - On PGA's Marine Alert add-on service, tanker market data would move to PGT page 9, from PGT page 953 currently. - Platts bunker fuel on its Marine Alert add-on information service (PGB) will move from PGB page 997 to PGB page 8. - The Market-on-Close page is where heards, bids, offers, and trades are reported by Platts.

After Dec 1, all Platts oil-related MOC pages (except 190*) will be found in the first 10 pages:

- PGA 2: Americas Product MOC (400) - PGA 3: Int'l Crude MOC - PGA 5: London Product MOC - PGA 6: Tanker MOC (PGA 953) - PGL 7: LPG MOC (PGL 468) - PGB 8: Bunker MOC (PGB 997) - PGT 9: Tanker MOC (PGT 953) *190 will not be changed.

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Data Source - Argus *

*Graph created with ZEMA

datawatch News from Data VendorsNovember 2012

Platts Introduces Ash Di�erential to Thermal Coal Pricing

Platts recently introduced a valuation mechanism that will bring greater clarity and specificity to thermal coal pricing based on ash content. Ash is the non-combustible residue left after coal is burnt.

“The new valuation mechanism is an important methodology addition to our assessment process for thermal coal prices,” said James O’Connell, Platts senior managing editor, international coal, at the occasion of CoalTrans Australia, an industry conference in Brisbane this week. “For the first time, buyers and sellers in the spot market have access to a pricing methodology that brings a higher degree of precision to coal valuation by accounting for variations in ash, which can be wide-ranging.”

Platts now applies a “normalization” value, expressed as a percentage of total price and in U.S. dollars per metric ton, to each 1% of additional ash content in thermal coal within the published standard range of 17% to 23%. This makes apparent the premium and discounts that can arise within a single grade of coal, because coal, though like-kind in quality, can vary by individual chemical properties.

For more details on this news item please visit this link

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ZEMA Adds More Data Sources

ZE is constantly expanding its data coverage. ZEMA’s flexible structure facilitates the collection of any electronically stored data from any source and at any frequency. New data reports have been added to ZEMA since the DataWatch October 2012 issue. They are:

Data Source Report AESO Seven Day Hourly Available Capacity Report ATS Controlled Sections Power Flows CAISO MMD Shift Factors (Real-Time) CAISO MMD Shift Factors (Day-Ahead) CAISO MMD Transmission Limits (Day-Ahead) CAISO MMD Transmission Limits (Hour-Ahead) CAISO MMD Transmission Limits (Real-Time) CAISO MMD Shift Factors (Hour-Ahead) CAISO MMD Load Distribution Factors (Day-Ahead) ERCOT Nodal Settlement Invoices IEA MODS Balances IEA MODS Stocks IEA MODS World Oil Supply and Demand IEA MODS Trade IEA MODS Demand IEA MODS Supply IESO Day Ahead Shadow Prices Markedskraft NP Hourly Spot Price Forecast NEISO Current Hourly Marginal Price PJM eSchedule Expansion Cost Recovery Credit Summary PJM eSchedule Generation Deactivation Refund Charge Summary

PJM eSchedule Operating Reserve for Load Response Charge Allocation

PJM eSchedule Day Ahead Scheduling Reserve Summary PJM eSchedule FRR LSE Schedules 9-5 and 9-6 Charges PJM eSchedule RT Daily Energy Transactions PJM Black Start Charge Summary PJM eSchedule Deficiency Credit Summary

PJM eSchedule Operating Reserve for Load Response Credit (Pre FERC 745 (04.01.2012))

PJM eSchedule Regional Balancing Operating Reserve Charge Summary

PJM eSchedule Hourly Transmission Congestion Credits PJM eSchedule Reactive Services Charge Summary PJM eSchedule Low Voltage NITS Charge Summary PJM eSchedule DASR Load Reconciliation Charge Summary PJM eSchedule DA Daily Energy Transactions PJM eSchedule Firm PTP Credit Summary PJM Annual Directly Allocated FTRs PJM Meter Correction Allocation Charge Summary PJM eSchedule FRR LSE Reliability Charge Summary PJM eSchedule Synchronized Reserve Tier 2 Charge Summary PJM eSchedule Operating Reserve for Load Response Credit PJM eSchedule NITS Offset Charge Summary PJM eSchedule Schedule 1A Credit Summary PJM eSchedule Advanced Second Control Center Charge Details PJM eSchedule Econ Load Response Zonal Charge Allocations PJM eSchedule Sched 1A Load Recon Charge Summary

PJM eSchedule Operating Reserve for Load Response Charge Allocation (Pre FERC 745 (04.01.2012))

PJM eSchedule DR and ILR Compliance Penalty Charge and Credit PJM eSchedule Inadvertent Interchange Charge Summary PJM eSchedule Generation Deactivation Charge Summary PJM eSchedule Network ARR Target Credit Summary PJM eSchedule Non-Firm PTP Credit Summary Reuters Daily Currencies Quote USDA AMS Tallow Protein And Hide Report Williams Northwest Storage Level Xoserve NDM Composite Weather Variables Xoserve NDM Seasonal Normal EffectiveTemperature Xoserve NDM Annual Load Profiles and Daily Adjustment Factors Xoserve NDM Scaling and Weather Correction Factor

KYOS Launches New Forward Curve Service for Power and Gas

Amsterdam, 29 November 2012. KYOS Energy, analytical software and consulting company, has expanded its range of services to offering arbitrage-free hourly power price curves and daily gas price curves. The price curves are available on a dedicated website www.pricecurves.com.

The forward curves are based on end-of-day closing prices from leading exchanges. Whereas exchanges quote prices for specific forward periods, energy market professionals need consistent curves with monthly, daily or hourly granularity for a range of daily tasks. Applications include the pricing of non-standard deals, plant dispatch optimization and risk management. In power markets, the curves are generally known as hourly price forward curves (HPFC).

KYOS has specialist software, KyCurve, to break up market prices into the desired granularity, applying shapes that reflect typical patterns in historical spot and forward prices. This software for price forward curve building has been developed and refined over many years. KyCurve and the accompany-ing Monte Carlo simulation model KySim are in use by a broad range of clients. KyCurve contains a set of advanced procedures to create curves that realistically reflect hourly, daily and monthly patterns, while being arbitrage-free relative to market quotes.

The launch of this new service is in response to growing interest to have independent assessments of forward curves. It also addresses the demand for sophisticated analytics without having to operate advanced software in-house.

The current coverage is focused on European markets, including 5 power markets (Germany, France, Nordic, Netherlands, Belgium) and 4 gas markets (NCG and GasPool Germany, TTF Netherlands, PEG-Nord France). Other markets will be added soon.

The KYOS price curves are available per subscription. Free curves are available with a one day delay for German EEX power and German NCG gas on www.pricecurves.com.

datawatch November 2012 In Depth

Technological advances are continuing to enable the extraction of more oil and gas once considered too difficult and expensive to reach.

The development of cheaper, more efficient horizontal drilling methods along with improvements in hydraulic fracturing or ‘fracking’ techniques is transforming the natural gas market. Because of this, vast reserves are now available at relatively low costs.

And it doesn’t sound like the U.S. will be running out of fossil fuels anytime soon. According to the most recent estimates by the Energy Information Administration, the U.S. has some 2,214 trillion cubic feet of technically recoverable natural gas - enough to satisfy its natural gas demands for the next 100 years at current consumption levels.

The good news isn’t confined to the continental US either. Further technological advances are making deeper oil drilling possible in the Gulf of Mexico. New imaging and seismic technology is enabling engineers to predict the location and size of reservoirs once obscured by thick layers of salt. And drill bits made of strong alloys have been developed to withstand the hot temperatures and high pressures deep under the seabed.

As can be seen from the divergence in the Brent-WTI spread, it’s not all smooth sailing for Western energy markets. The unexpected resurgence in North Ameri-can oil production has exposed one of the biggest issues that stand in the way of energy independence: infrastructure, or a lack thereof.

Transporting supplies across the continent is proving to be very costly as the current system has no extra capacity to serve additional supply. Take for example Canada. The output of Canadian oils sands has tripled since 2000. However despite Canada being a top exporter of oil, eastern provinces are still forced to import oil due to country’s vast geographical expanse and lack of available pipeline capacity. For eastern Provinces, the most cost effective measure for oil supply is still importing from foreign suppliers. If the infrastructure plans that are on the drawing board come to fruition, total energy independence for the continent can be advanced. Limited transportation structure precludes Canadian oil from being delivered to the southern coast line.

The Revival of Western Oil and Gas Production – It Only Changes Everything

Crude oil and natural gas production in North America is booming, contributing to a massive reshaping of the global energy landscape.

At the launch of the 2012 Edition of the World Energy Outlook (WEO) in London on November 12, the International Energy Agency (IEA) announced that growth in U.S. oil and gas production is putting it on track to becoming self-sufficient by 2035. If Canadian production is included, continental self-sufficiency may be as early as 2020. The carbon glut is contrary to the scenario of five years ago, when rising oil prices were partly fueled by a belief that the era of permanent scarcity had arrived; the pending peak oil crisis. The outlook at the time was similar for gas and was a major driving factor behind energy security policies and the efforts to diversify national energy portfolios with renewable generation.

However, the bleak forward energy outlook is being swept aside by an energy renaissance taking shape in the west. Earlier this month, the IEA predicted the US will become a net exporter of natural gas by 2020. With shale gas production increasing from 2% to 27% of US production, this looks like a real possibility.

Oil independence is a little more difficult to count on. The IEA forecasts that North America will become a net oil exporter in the future. However some, including Michael Levi of the Council on Foreign Relations, predict that U.S. consumption will continue to outstrip supply. Most agree, however that demand for oil in the U.S. has probably peaked.

By Denise O’Donovan

Technology as a disruptive force

Although renewable energy still has a significant role to play in the future energy mix, the emergence of plentiful and cheap gas is placing pressure on the industry to reduce its production costs or face diminishing growth prospects.

According to Maria van der Hoeven, executive director of the IEA, Governments policy measures for renewable energy are not always as cost-effective as they could be. This is not lost on the politicians who have been changing their tune of late and scrutinizing the cost-benefit analysis of subsidizing renewable genera-tion. Industry is also jumping on the band wagon, sometimes viewing renewable energy costs as an indirect tax or levy that puts competitive pressure on them relative to foreign companies, especially those based in Asia.

The political pressure is obvious in the case of President Barak Obama as he considers an extension to the expiring Production Tax Credit (PTC). The incentive provides a subsidy of 2.2 cents per kilowatt hour to producers of electricity from wind turbines. Despite having made wind energy a centerpiece of the national energy portfolio and having a recent victory in the presidential race under his belt, an Obama extension of the PTC is not guaranteed. Its fate is currently being played out in a Congress which must contend with the fact that a one-year extension of the PTC would cost American taxpayers more than $12 billion dollars.

In a recent article in the Journal of Energy Economics, ‘Clean energy: revisiting the challenges of industrial policy’, cost of renewable generation is discussed in detail. Its authors say that although a case can be made for subsidizing clean energy to help address market failures; this case may be narrower than some think. They believe spending on clean energy technologies is not well suited to fiscal stimulus. In order to make renewables more competitive, federal authorities should be investing in technologies which produce the least cost energy and bear the highest probability of market penetration.

Speaking of clean energy, the debate on whether or not shale gas is good for climate change is beginning take shape. The consensus viewpoint is that shale gas can play an important role in reducing greenhouse gas emissions by displac-ing coal used for electricity. They say shale can be seen as a moderate-carbon ‘bridge fuel’. Still others say the methane emissions from shale extraction are leading to higher greenhouse gas emissions overall. Methane – a greenhouse gas more than 20 times as potent as carbon dioxide in terms of global warming – leaks from fracking sites, and is rarely captured by the gas companies because the technology to capture it costs money and they face no penalty for the leaks.

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So what impact is all of this having, particularly on renewable energy?

The Revival of Western Oil and Gas Production – It Only Changes Everything

datawatch November 2012 In Depth

Add the views of Daniel P. Schrag, Sturgis Hooper Professor of Geology and Professor of Environmental Science and Engineering at Harvard University, into the mix. He says the main impact of shale gas on climate change is neither the reduced emissions from fuel substitution nor the greenhouse gas footprint of natural gas itself, but competition between abundant, low-cost gas and low-carbon technologies, including renewables and carbon capture and storage.

He believes that a solution can be found if the gas industry joins forces with environmental groups, providing a counterbalance to the coal lobby, and ultimately eliminating the conventional use of coal in the United States. Trends indicate that this may already be occurring. But in most respects, some sat the science around emissions and greenhouse effects is still speculative at best.

What impacts will the oil and gas resurgence in the U.S. have on the rest of the world?

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According to Liam Denning of Market Hub, if trends continue, the impact on geo-political affairs as well as to the global energy map will be quite pronounced.

The resurgence of oil and gas production in the United States could change the face of the nation’s foreign policy and have significant impacts on world affairs.

For one, it could redefine the nation’s military commitments in key geopolitical regions.

Up to now, a threat to Middle East supplies has been seen by Americans as a direct threat to national security. However as the U.S continues to grow, it energy supplies from domestic sources, securing global oil supplies may no longer be a number one priority. Some say an American presence in the Middle East may diminish as time moves forward and the US shale-oil boom helps it overtake Saudi Arabia as the world’s largest oil producer by 2020.

Just as significant is the fact that while energy demand in the US and the rest of the OECD may be flat, global energy demand will continue to push even higher in the coming years, growing by an estimated one-third by 2035 says the IEA. China, India and the Middle East will account for 60% of this growth alone. Almost 90% of Middle Eastern oil exports will be drawn to Asia by 2035.

What future impacts this may have are yet to be played out on the international political stage as economic austerity and recession still impacts much of the world’s key players. With these changing dynamics in energy production and supply it will be interesting to see what will unfold. One can only imagine that the future for North American energy will be nothing like it is today.

About ZE PowerGroup IncZE is an experienced software and strategic consulting firm that combines energy industry expertise with advanced software development capability. The company possesses deep industry knowledge and comprehensive operational experience. ZE is the developer of ZEMA Suite, a sophisticated Enterprise Data Management and Analysis solution built to meet the specific challenges of energy and commodity market participants.

About ZEMAZEMA is an enterprise data management suite designed for collecting data and performing complex analysis. ZEMA replaces fragmented data collection and analysis processes with a sophisticated, unified and automated data management system. Each ZEMA component can perform as an independent product; this means greater flexibility when integrating ZEMA into your organization. ZEMA is consistently ranked #1 for preferred system, #1 for ease of system integration, and #1 for customer service. ZEMA is easy to use and backed by our support team around the clock.

DisclaimerZE DataWatch is a report, comprised of data updates and expectations for energy and commodity markets and powered by ZEMA. The information contained in the ZE DataWatch is for information purposes only. Although ZE PowerGroup believes the information in this report to be correct and attempts to keep the information current, ZE PowerGroup does not warrant the accuracy or completeness of any information. Information in this report is not intended to provide financial, legal, accounting, or tax advice and should not be relied upon in that regard. ZE PowerGroup is not responsible in any manner whatsoever for direct, indirect, special or consequential damages, howsoever caused, arising out of the use of this report.