ZE Datawatch - December 2012

December 2012
datawatch
Worldwide Marine LNG Tracking HKEx completes LME Acquisition EPA proposes Modifications to MATS
D ata n e w s f o r e n e r gy a n d c o m m o d i t i e s m a r k e t s
A pan-European Natural Gas Market by EEX
Falling from a Height the Impact of the Fiscal Cliff on the Energy Sector
Powered by:
December 2012
datawatch Summary
p. 3 FX, Interest Rates, Credit and Equity Indexes p. 15 - 17
ICE Introduces New FX Products CME Launches Interest Rate Swap Futures S&P Dow Jones and TMX Launch Preferred Share Laddered and Equal Weight Sector Indices BM&FBOVESPA Trades New ETF ASX to Quote Australian Government Bonds New SPDR ETF Launched on Xetra Xetra Launches new iShared ETF Eurex Clearing Launches EurexOTC Clear for Interest Rate Swaps CBOE Introduces CBOE Low Volatility Index NYSE Euronext Expands Short Term Options
Editorial
The results of the US presidential elections brought us what they were expected to bring: more environmentally-focused policies on the horizon. Needless to say, promises of a balanced approach and the announcement of an all-of-the-above energy strategy have not removed questions over future US shale gas expansion and imports of Canadian oil from the tar sands.
Data News
Power Markets p. 4-5
EEX Launches Power Day Futures EEX Expands Transparency Data from Bulgaria NASDAQ OMX Launches New Genium INET Functionality and Products CME Delists ERCOT and MISO Products Platts to Extend German Forward Curve Assessments BRIX Launches Weekly Contracts
Other Matters
p. 18 - 19
Fossil Fuel Markets
p. 6-9
CME Adds 352 Energy Futures and Options Argus Launches ANEATM LNG Forward Swap Assessments Baltic Exchange Launches Weighted Forward Curves for Tanker FFAS Genscape Launches ARA Weekly Gasoil Storage Report Platts to Standardize Global Bunker Fuel Conversions Platts Launches US Gasoline Component Assessments Platts Launches North Asia Physical Bunkers eWindow Platts Starts Coal Freight Assessments CME Delists Oil and Natural Gas Futures Platts to Cease Assessing Clean UKC-Med 30kt Platts to Suspend Publication of US Lube Postings EEX and Powernext to Create a pan-European Natural Gas Market ASX Finalizes Disclosure Rules for Mining,Oil and Gas FERC to Improve Transparency in Natural Gas Market Price Genscape and Commodity Vectors to Deliver Worldwide LNG Tracking Extension of ICE NY Harbor Heating Oil and RBOB Gasoline Futures Listing Cycle Expansion for CME Refined Products Platts Expands FC Assessments for US Refined Products
Eurex Exchange Launches Advanced Derivative Trading System Wall Street Journal Launches MarketWatch Retirement Service Eurex Launches Securities Lending CCP Service IHS Adds New Content ASIC Changes Market Integrity Rules for Australia Singapore Broker to Enter ICE Futures Europe Markets Bursa Malaysia Signs MoU with Shanghai Stock Exchange CFA and Eurex to Enhance Futures Market Structure in China CBOE Holdings to Transition SPXpm from C2 To Hybrid Trading
ZEMA Market Dashboard

Actual Weather (AccuWeather) Actual Temperature (AccuWeather) North American Electricity Forward Curves (ICE) Henry Hub Natural Gas Forward Curve North American Natural Gas Sport Prices (ICE) Crude Oil Brent vs WTI Prompt-Month Contract (NYMEX) Forward Curve (NYMEX)
p. 20 - 21
News from Data Vendors
p. 22 - 23
Agriculture, Forestry and Metal Markets
p. 10-11
HKEx Complete Acquisition of LME First ETFs Tracking Platinum and Silver Prices on HKEx CME Launches Implied Inter-Exchange KCBT-CBOT Futures Spread CME Lists Aluminum MW U.S. Transaction Premium (Platts) Futures RICI Index Adds NYSE LIFFES Robusta Coffee and Cocoa Futures FIS Launches OTC Options in NOLA Urea Fertilizer Market ICAP Launches Global Iron Ore Desk in London and Singapore ETFS Launches ETC on a Commodity Basket ex Agriculture and Livestock
Argus Launches ANEA LNG Forward Swaps Assessments Argus Launches First Southeast Asian LNG Price Indication Argus Expands Coverage of Argus Latin American Markets ZEMA Adds More Data Sources
In Depth
p. 24 - 27
Environmental Markets and Weather Services p. 12-14

ICE Futures EUA Auction Contract Auction Specifications ICE Reopens Emissions Daily Futures and Launches Phase III Daily Futures EEX and Hungary Sign Contract for Auctioning of EUA Phase II EEX Launches CER Spot Market and Expands Carbix Index Listing Cycle Expansion for CME Emission Futures and Options Private Companies Share Weather Data with NOAA EPA Proposes Slightly Modified MATS for New Power Plants
Falling from a height the Impact of the Fiscal Cliff on the Energy Sector
The energy sector has recently become a bastion of hope for the US. Despite the year-on-year growth in the shale gas and oil industries, continued bickering in Washington is causing serious concern over what consequences no compromise could have on the sector. Could a fall from the Fiscal Cliff at year-end burst the bubble for the sector or could the sector itself be the catalyst for keeping the economy afloat during stormy weather?
December 2012
datawatch Editors letter
The results of the US presidential election brought us what we expected it to bring: more environmentally-focused policies for the coming years ahead. Needless to say, promises of a balanced approach and the announcement of an all-of-the-above energy strategy doesnt change the fact that questions remain over the future of US Shale gas expansion and imports of Canadian oil from the tar sands. The decision on the fate of the $7 billion Keystone XL project is one of the most highly anticipated. As President Obama delayed the decision until after the election, pressure from both sides reached a critical point. Senators are now calling on the president to stop procrastinating. Keystone XL opponents are marching outside the White House. Which side will end up winning is not clear yet. A decision on the approval of the pipeline will be a real test for the president, whose election campaign included seemingly contradicting and somewhat mutually-exclusive promises of new jobs, an improved economy, energy independence and efforts to slow down climate change and address environmental concerns. The expansion of shale gas production is under pressure. Most likely, debates on shale gas regulations will extend well into 2013 and maybe after. Shale gas production is expected to see the adoption of best practices in well development and completion, as well as a requirement to disclose what ingredients have been used in hydraulic fracturing mixtures. The discussion on liquefied natural gas exports will likely hit obstacles posed by protectionists, who continue to raise concerns about the possible impacts of natural gas exports on domestic prices. While balancing the interests of environmental activists and oil producers by the president can be tricky, we can be sure of one thing: the environmental agenda is here to stay for the next four years. President Obama started off his second term with promises of taking more measures towards curbing climate change. He is already promising to double his efforts to clean energy production and to remove carbon from the atmosphere. His administration has started to develop domestic energy production from resources available on the Outer Continental Shelf. At the end of November, Secretary of the Interior announced lease sales for renewable energy development in federal waters of the Atlantic Ocean. About the same time, the Department of Energy awarded funding for Batteries and Energy Storage Hub in support of electric cars and renewable power generators. In the coming years we are likely to witness an even more active EPA. Pending regulations that have been dragging for some time will finally come to fruition. We will see the completion of the rule limiting mercury emissions from coal and oil-fired power plants. A GHG emissions standard for new fossil-fueled energy plants will see a final stage of reviews. Coal-ash regulations will also be approved and a cooling-water intake rule for thermal generating plants will likely be wrapped up by the summer of 2013. In addition to this, we are likely to see some low resistance from Congress in extending the wind PTC after its expiration at the end of 2013. What will all of this bring to those of us whose line of work involves dealing with the constant emergence of new data providers and the ever-growing number of market data reports? No doubt, weather forecasting will remain one of the main sources of expanding services and new data will set renewable power generation targets. A reduction of the granularity of electricity scheduling data will bring more challenges to analysts and will require a significant increase in data storage and processing capacity. More emission-reduction financial products will be introduced and public databases tracking the ingredients of fracking liquids will be added to the mix.
Olga Gorstenko
Editor
Olga Gorstenko Phone: 778-296-4183 Email: olga@ze.com
Advertising & Vendor Relationships

Bruce Colquhoun Phone: 604-790-3299 Email: bruce.c@ze.com
Bruce Colquhoun Phone: 604-790-3299 Email: bruce.c@ze.com
ZEMA Suite Inquiries
Have an idea for an article or would like to contribute to an upcoming issue? Write to us at datawatch@ze.com To access previous issues of ZE DataWatch, go to datawatch.ze.com
datawatch December 2012 EEX Launches Power Day Futures

On November 22, 2012, the European Energy Exchange (EEX) successfully launched trading in new short-term power derivatives, the Phelix Day and Weekend Futures. Until 2pm CET a total of 720 MWh was traded in the new products. The first transaction for the Future for delivery on November 23 with a volume of 600 MWh was concluded between A2A Trading S.r.l. and Dynamic Energy ApS at a price of 47.15 Euro/MWh. The new power derivatives complement the existing cash settled Phelix Futures for Germany/Austria and close the gap between Spot and Derivatives Markets. EEX Code FB01 FB34 FWB1 FWB5 FP01 FP34 FWP1 FWP5 Description Phelix Base Day Future Phelix Base Weekend Future Phelix Peak Day Future Phelix Peak Weekend Future
Power Markets
process and the first publication of Bulgarian generation data is scheduled for the first quarter of 2013. By reporting the data, companies will be able to use the Transparency in Energy Markets platform to implement their publication requirements under REMIT. Under this EU regulation, the market participants are required to disclose insider information which is relevant for pricing in power and natural gas trading. Furthermore, reporting of the data on the transparency platform also forms an important step in increasing transparency on the Bulgarian market and, thus, promoting its development. The quality and flexibility of the transparency platform promotes the fast and effective integration of data reported from further countries. Consequently, by using the transparency platform, EEX gives market participants throughout Europe the opportunity to fulfill their publication requirements under REMIT.
This following graph shows similar products to the Phelix Day Futures traded on EEX. The products are Phelix Base Vs Load Weekly Future Contract:
NASDAQ OMX Launches New Genium INET Functionality and Products

Effective November 26, 2012, Genium INET upgraded to version 0220 to include the following new features: German Day Future power contracts. Depending on the trading day, the number of tradable series will fluctuate between 3 and 9. Estonian CfDs Power Contracts. Covering 2 monthly, 3 quarterly and 3 yearly contracts; the Estonian forward curve will be referenced against the Estonian electricity spot price (EE), which is published by Nord Pool spot. Finnish and Swedish CfD Curve Extension. These curves will now cover 4 monthly, 4 quarterly and 4 yearly contracts. One-sided combinations. This new type of combination order facilitates trading of system price contracts and CfD contracts at the same time. Technical changes to the SPAN File. NASDAQ OMX Commodities SPAN-File will have an increase in the number of characters in the Priority Field from 3 to 6 in SPAN record type 11. This is a mandatory change. UK Spark Spread Enhancements. This functionality will be enhanced with the ability to match the Spark Spread combinations with the leg instruments. Trading Applications. The Go-Live version of Trading Workstation_r32111 can be found on the extranet and is available for download The most up-to-date documentation on Genium INET can be found on the member extranet:
To learn more, click here.
Data Source: EEX*

For EEX product specifications click here
EEX Expands Transparency Platform with Generation Data from Bulgaria

On November 15, 2012, European Energy Exchange (EEX) announced they will expand the Transparency in Energy Markets platform with the publication of generation data from Bulgaria. This will result in power generation data from Bulgaria being available on the www.transparency.eex.com internet platform in the future. The first company to report power plant data from Bulgaria would be EZ Group and Windkraft Simonsfeld. As a result of this first step, a capacity of approximately 1,300 MW will be published on the platform. The companies are currently in the connection
*Graph created with ZEMA
CME Delists ERCOT and MISO Products

Effective December 3, 2012, NYMEX delisted 40 ERCOT and one MISO products:
Back to Summary
datawatch December 2012

CME Code Description 2S ERCOT Houston 345 kV Hub 50 MW Peak Calendar-Day Futures 3E ERCOT Houston 345 kV Hub 50 MW Off-Peak CalendarDay Futures 2T ERCOT North 345 kV Hub 50 MW Peak Calendar- Day Futures 3F ERCOT North 345 kV Hub 50 MW Off-Peak Calendar-Day Futures 2U ERCOT South 345 kV Hub 50 MW Peak Calendar- Day Futures 3H ERCOT South 345 kV Hub 50 MW Off-Peak Calendar-Day Futures 2V ERCOT West 345 kV Hub 50 MW Peak Calendar-Day Futures 3J ERCOT West 345 kV Hub 50 MW Off-Peak Calendar-Day Futures EHR ERCOT Houston Competitive Load Zone Real-Time 5 MW Peak Futures EWR ERCOT West Competitive Load Zone Real-Time 5 MW Peak Futures ERR ERCOT North Competitive Load Zone Real-Time 5 MW Peak Futures EUR ERCOT South Competitive Load Zone Real-Time 5 MW Peak Futures EHI ERCOT Houston Competitive Load Zone Real-Time 5 MW Off-Peak Futures EWI ERCOT West Competitive Load Zone Real-Time 5 MW Off-Peak Futures ERI ERCOT North Competitive Load Zone Real-Time 5 MW Off-Peak Futures ESI ERCOT South Competitive Load Zone Real-Time 5 MW Off-Peak Futures EHM ERCOT Houston Competitive Load Zone Real-Time 5 MW Peak Calendar-Day Futures EWM ERCOT West Competitive Load Zone Real-Time 5 MW Peak Calendar-Day Futures ENM ERCOT North Competitive Load Zone Real-Time 5 MW Peak Calendar-Day Futures EUM ERCOT South Competitive Load Zone Real-Time 5 MW Peak Calendar-Day Futures EHT ERCOT Houston Competitive Load Zone Real-Time 5 MW Off-Peak Calendar-Day Futures EWT ERCOT West Competitive Load Zone Real-Time 5 MW OffPeak Calendar-Day Futures ENT ERCOT North Competitive Load Zone Real-Time 5 MW Off-Peak Calendar-Day Futures EST ERCOT South Competitive Load Zone Real-Time 5 MW Off-Peak Calendar-Day Futures EHD ERCOT Houston Competitive Load Zone Day-Ahead 5 MW Peak Futures EWD ERCOT West Competitive Load Zone Day-Ahead 5 MW Peak Futures ERD ERCOT North Competitive Load Zone Day-Ahead 5 MW Peak Futures EUD ERCOT South Competitive Load Zone Day-Ahead 5 MW Peak Futures EHY ERCOT Houston Competitive Load Zone Day-Ahead 5 MW Off-Peak Futures EWY ERCOT West Competitive Load Zone Day-Ahead 5 MW Off-Peak Futures ERY ERCOT North Competitive Load Zone Day-Ahead 5 MW Off-Peak Futures EUY EHC EWC ERC EUC EOH EWH ENH ETH CC
Power Markets
ERCOT South Competitive Load Zone Day-Ahead 5 MW Off-Peak Futures ERCOT Houston Competitive Load Zone Day-Ahead 5 MW Peak Calendar-Day Futures ERCOT West Competitive Load Zone Day-Ahead 5 MW Peak Calendar-Day Futures ERCOT North Competitive Load Zone Day-Ahead 5 MW Peak Calendar-Day Futures ERCOT South Competitive Load Zone Day-Ahead 5 MW Peak Calendar-Day Futures ERCOT Houston Competitive Load Zone Day-Ahead 5 MW Off-Peak Calendar-Day Futures ERCOT West Competitive Load Zone Day-Ahead 5 MW Off-Peak Calendar-Day Futures ERCOT North Competitive Load Zone Day-Ahead 5 MW Off-Peak Calendar-Day Futures ERCOT South Competitive Load Zone Day-Ahead 5 MW Off-Peak Calendar-Day Futures MISO Indiana Hub (formerly Cinergy Hub) Calendar- Day Peak LMP Futures (CC)
There was no open interest in these contracts.
Platts to Extend German Forward Curve Assessments

Platts has proposed to extend its 35% efficiency German dark spread and clean dark spread daily assessments by one year as a result of increasing liquidity at the far end of the curve effective January 7, 2013. The assessments, which play an important part in identifying hedging opportunities, would be published in Platts European Power Daily, Coal Trader International, on Platts European Power Alert and in Platts Market Data. Any feedback on the proposal should be sent to power@platts.com, cc: to pricegroup@platts.com by December 17, 2012.
BRIX Launches Weekly Contracts

Effective November 21, 2012, BRIX launched contracts for weekly provision, a new energy trade format, for Conventional (fixed price),Conventional PLD + Premium and Fixed/Variable PLD Swap products. This will strengthen current trade strategies. Two of these strategies include: 1. PLD Hedge (weekly): many traders and generators manage their risks associated with variations in the Differences Settlement Price (PLD) by operating through the BRIX platform Fixed/Variable PLD Swap with monthly contracts. New weekly contracts will now accelerate the implementation of the same strategy since it will not be necessary to wait for PLD at a certain time of the month before transacting the Fixed/Variable PLD Swap for the whole month. 2. Modulation Arbitration: Conventional weekly contracts will permit participants (including generators, traders and consumers) to carry out a modulation arbitration of their profile, concentrating larger volumes at specific periods of the month.
Back to Summary
datawatch December 2012 CME Adds 352 Energy Futures and Options
Effective December 16, 2012, 352 energy futures and options will be listed for trading on CME Globex pending regulatory review periods. These products will be available for customer testing in New Release starting on Monday, December 3.These contracts are listed with, and subject to, the rules and regulations of NYMEX. Settlement prices will be published for the synthetic futures to support customer options pricing models.
The complete list of product names and codes are available here.
Fossil Fuel Markets Baltic Exchange Launches Weighted Forward Curves for Tanker FFAS
Effective November 8, 2012, Baltic Exchange launched an activity weighted forward curve for the tanker forward freight agreement (FFA) market in response to market demand. The new method of calculation considers the level of market activity each panel broker has assumed over a specific period and reflects this by weighting their submissions correspondingly. The result is a forward curve which better echoes actual market activity and experience, strengthening the position of the Baltics forward curves, which serve mark-to-market purposes.
See an example of the gasoline futures already traded on CME below:
Genscape Launches ARA Weekly Gasoil Storage Report

On November 7, 2012, Genscape launched AmsterdamRotterdam-Antwerp (ARA) Weekly Gasoil Storage Report based on weekly tank-by-tank physical measurements. Applying the same measured data technological expertise used in its North American Cushing Oil Storage, Genscape strives to establish Europes only weekly measurement of middle distillate physical inventories at storage terminals corresponding to the ICE Gasoil contract. While increasing transparency, this new report would particularity appeal to those who need access to the actual storage data of European oil. In addition to a weekly PDF, web-based dashboard and data feed, Genscape provides historical tank-by-tank data and updates on tanks undergoing construction or maintenance. ARA weekly actuals aims to give subscribers a new tool to identify new tradable short-term opportunities by covering more than 1,000 ARA tanks which move 175 million tons of oil through this channel every year.
Data Source: CME*
Argus Launches ANEA LNG Forward Swap Assessments

On December 4, 2012, Argus launched a new series of northeast Asian LNG forward swaps assessments in the Argus LNG Daily report, known as ANEATM swaps. This highlights the growing liquidity in LNG derivatives, as well as industry demand for a reliable forward curve. They cover three forward-month periods from the furthest ANEA physical spot assessment meaning market participants can currently see the value of northeast Asian LNG swaps trading for March, April and May 2013. ANEA physical spot assessments represent cargoes delivered ex-ship (des) to ports in Japan, South Korea and Taiwan, trading 6-12 weeks before the date of delivery. It complements the Argus LNG Daily reports existing suite of AsiaPacific and European spot price assessments, market commentary and global netback pricing. According to Adrian Binks, Argus Media chairman and chief executive, The LNG market is evolving at a rapid pace and the development of a financial derivatives market is key to enabling market participants to manage their risk effectively. The launch of ANEA forward swaps assessments in the Argus LNG Daily report provides stakeholders with transparency about the costs of hedging.
Platts to Standardize Global Bunker Fuel Conversions

On November 9, 2012, Platts announced plans for standardizing the conversion factors used for its global bunker fuel assessments. The factor for converting 180 CST and 380 CST bunker fuel assessments between metric tonnes and barrels would be 6.35. The factor for converting marine diesel and marine gasoil assessments between metric tonnes and barrels would be 7.45. The new assessments would come into effect from July 1, 2013, and would appear on Platts Global Alert, Bunkerwire and in the Platts price database.
Back to Summary
datawatch December 2012 Platts Launches US Gasoline Component Assessments

On December 3, 2012, Platts launched outright price assessments for US Gulf Coast alkylate, raffinate, and reformate. The spreads for each versus Platts US Gulf Coast, front-line 87 unleaded pipeline assessments prevailing at 3:15pm ET will also be published. Comments on Platts proposal to discontinue the existing alkylate, raffinate, and reformate differential assessments to the Platts US Gulf Coast Gasoline waterborne assessment is being accepted until February 1, 2013. The current differentials will continue to be published for now; however the proposal to discontinue the waterborne-based differential assessments, effective May 1, 2013, is being considered. Comments to americas_products@platts.com, with a cc to pricegroup@platts.com 4F R9 W7 5P 5Q V1 S1 S3 S5 S6 S8 T1 RZ YU K5 Q3
Fossil Fuel Markets

Gulf Coast Unl 87 (OPIS) vs. RBOB Gasoline Spread Futures Gulf Coast Jet (OPIS) Futures Gulf Coast Jet (OPIS) vs. NY Harbor ULSD Heating Oil Futures Gulf Coast ULSD (OPIS) Futures Gulf Coast ULSD (OPIS) vs. Heating Oil Spread Futures National Balancing Point (NBP) Henry Hub Basis Options Diesel 10ppm NWE Le Havre CIF NWE (Platts) Futures Diesel 10ppm NWE Le Havre CIF NWE (Platts) vs. Gasoil Futures Diesel 10ppm NWE Le Havre CIF NWE (Platts) vs. Gasoil BALMO Futures Diesel 10ppm UK (Platts) CIF NWE Futures Diesel 10ppm UK CIF NWE (Platts) vs. Gasoil Futures Diesel 10ppm UK (Platts) CIF NWE vs. ICE Gasoil BALMO Futures New York Harbor Conv. Gasoline (Platts) vs. RBOB Gasoline Futures NY ULSD (Platts) Crack Spread Futures Alberta Natural Gas Swing (Platts Gas Daily) Futures Stanfield Natural Gas Swing (Platts Gas Daily) Futures
Platts Launches North Asia Physical Bunkers eWindow

Effective November 16, 2012, Platts launched a new eWindow technology to assist Japan, South Korea, Hong Kong and Shanghai bunkers with the Market on Close assessment processes. Bids and offers by the participants in the Platts MOC assessment processes can be submitted though the eWindow software, which will then publish those bids and offers. The bids and offers can also be submitted to an editor, who would then publish them through the eWindow. Credit relationships that exist inside Platts assessment environment are expected to fully reflect relationships in the markets as a whole. Participants in the assessment process should advise Platts if any counterparty credit filters or restrictions need to be modified. Training on the new software is being offered by Platts. Feedback and comments can be sent to oilgroup@ platts.com
There was no open interest in these contracts.
Platts to Cease Assessing Clean UKC-Med 30kt

Effective May 1, 2013, Platts is proposing to cease assessing the value of United Kingdom/Continent-Mediterranean 30kt clean tanker freight rates, reflecting the significant changes in oil flow in the market and the less frequent chartering of this route. Platts Clean Tankerwire and Platts Global Alert page 558 currently publish the rates. Assessments and associated data to be discontinued from May 1, 2013 includes: Database Code PFALZ00 PFARL03 TCABT00 TCABT03 PFALZSZ Assessment Clean UKC-Med MR Worldscale Basis (30kt) Daily Clean UKC-Med MR Worldscale Basis (30kt) Monthly Average Clean UKC-Med MR $/mt (30kt) Daily Clean UKC-Med MR $/mt (30kt) Monthly Average Clean UKC-Med MR cargo size
Platts Starts Coal Freight Assessments

On December 3, 2012, Platts launched coal freight rate assessments from the US East Coast to Rotterdam, Brazil, India and China, using Hampton Roads, US, to Praia Mole in Brazil, Paradip in India and Qingdao in China as a basis for normalizing freight rates. The assessments, which will be for Panamax vessels, will be added to the daily freight assessments for Australia-toChina and Australia-to-India routes. Data Source: Argus*
Platts to Suspend Publication of US Lube Postings

Platts is seeking feedback on its proposal to suspend the publication of monthly posted prices for US lubricating base oils. The suspension would come into effect from March 1, 2013. Assessments would not be affected by the price suspension and lube values would continue to be assessed. US posted prices are currently published on Platts Global Alert pages 277, 278 and 279, and in the Platts market price database. Feedback should be sent to oilgroup@platts.com.
Postings that will be suspended and their relevant codes can be found here
CME Delists Oil and Natural Gas Futures

Effective December 3, 2012, NYMEX delisted several oil and natural gas futures: CME Code Description QE New York Harbor Ethanol Futures 4E Gulf Coast Unl 87 (OPIS) Futures
Back to Summary
datawatch December 2012 EEX and Powernext to Create a pan-European Natural Gas Trading Market
On November 6, 2012, European Energy Exchange (EEX) and Powernext SA signed a Memorandum of Understanding to combine their natural gas market activities and pool their respective expertise to create a pan-European gas market. This project is subject to the customary regulatory and competition approvals. Depending on the due completion of the relevant regulatory and competition requirements, the EEX and Powernext gas cooperation should go live in the first quarter of 2013. To facilitate natural gas trading, they will offer the market participants all gas products on a joint Trayport platform as it meets the requirements of the gas trading community and has already been used by Powernext since 2004. In the framework of their cooperation, EEX and Powernext will remain two separate gas exchanges and will not create a joint venture. In the future, they are planning to launch other European gas products together on the joint trading platform. Our aim is to deliver a unique pan-European gas offering focused on the physical and financial needs of the trading community, said Peter Reitz, Chief Executive Officer of EEX. We are building on our long-standing and successful cooperation in power trading. This is a very logical step for both our organizations. Moreover, we believe that, together, we have a convincing proposal for the participants in the gas sector, according to JeanFranois Conil-Lacoste, CEO of Powernext. In addition, he said it will benefit the integration of the European gas markets through the introduction of cleared geographical spread products. Elliott Piggott, CEO of Trayport, said: We are extremely pleased that EEX and Powernext have selected our proven trading platform for this challenging initiative. The Trayport team will provide the highest level of support to make this cooperation a success. As a result of the integration of the products within one system, joint spread products will be offered for trading: NCG/TTF, PEG Nord/TTF, GASPOOL/NCG, PEG Sud/PEG Nord, GASPOOL/TTF and PEG Nord/NCG. Clearing and settlement of all transactions will be provided by Europes leading energy clearing house, European Commodity Clearing AG (ECC).
Fossil Fuel Markets

The new requirements promote greater confidence and support for ASX-listed mining and oil and gas companies while also improving them.
To see compliance requirements, please click here.
ASX-listed mining and oil and gas companies will be provided with a 12-month transition period, with the new rules coming into effect on 1 December 2013.
FERC to Improve Transparency in Natural Gas Market Price

On November 15, 2012, FERC initiated a Notice of Inquiry which is to investigate whether or not quarterly reporting of FERCjurisdictional next-day and next-month transactions under the Natural Gas Act are necessary for improving price transparency in the wholesale natural gas market. Measures facilitating price transparency are currently in place; however, areas where additional transparency may be helpful to market participants in deterring market manipulation have recently been identified. Often, the information used to produce the prices reported to the various indices is aggregated and lacks transparency. FERC asks questions on how best to enhance price transparency and surveillance of gas markets aims to increase confidence in these indices, and assure participants that prices are a result of fundamental supply and demand. Comments can be made to the Federal Register 60 days from publication of the notice.
Further information can be found here.
Genscape and Commodity Vectors to Deliver Worldwide Marine LNG Tracking

On November 20, 2012, Genscape announced a new strategic partnership with Commodity Vectors, a UK and Ireland-based commodity research firm. Genscape provides its patented and largely land-based energy monitoring expertise to Commodity Vectors proprietary maritime analysis technology to deliver a more complete picture of real-time energy flows, both on land and sea worldwide. This joint partnership aims to bring a whole new level of market transparency to oceangoing bulk energy commodities.
ASX Finalizes Disclosure Rules for Mining and Oil & Gas Companies
On November 8, 2012, ASX introduces new listing rules to enhance disclosure of reserves and resources by ASX-listed mining and oil and gas exploration and production companies after receiving regulatory approval. The new initiatives include: Enhanced reserves and resources reporting, Improved flexibility for small to mid-cap companies to raise additional capital, Streamlined timetables for rights issues, On-market bookbuild facility, Equity research scheme for small to mid-cap companies, Revised and updated listing rule guidance notes, particularly for continuous disclosure.
Back to Summary
datawatch December 2012 Extension of ICE NY Harbor Heating Oil Futures and RBOB Gasoline Futures
Effective October 31, 2012, the ICE Heating Oil futures and the ICE RBOB Gasoline futures contract listing has been extended up to 48 consecutive months and 36 consecutive months respectively. See below an example of January 2013 future contract traded on ICE: JU KL US UT Gulf Coast Jet (Argus) Up-Down Futures Los Angeles CARB Diesel (OPIS) vs. NY Harbor ULSD Heating Oil Futures Gulf Coast ULSD (Argus) UpDown Futures Gulf Coast No. 2 (Platts) UpDown Financial Futures
Fossil Fuel Markets
These contracts are listed with, and subject to, the rules and regulations of NYMEX.
Platts Expands Forward Curve Assessments for US Refined Products

On December 3, 2012, Platts confirmed the expansion of existing curves for US Gulf Coast unleaded gasoline, heating oil, jet fuel, ULSD, Atlantic Coast jet fuel, West Coast jet fuel and West Coast CARBOB by an additional eight months. Curves for US Gulf Coast 3% sulfur residual fuel oil and Atlantic Coast 1% sulfur fuel oil will also have an additional eight months added. NYMEX RBOB and heating oil frontline swaps and NYMEX WTI frontline swaps are being extended to 36 calendar months. New forward curve assessments consisting of 36 calendar months for Dubai and Brent frontline swaps at the Americas Market on close of 3:15 pm ET are also being launched by Platts.
For the list of products and pages click here.
Data Source: ICE*
Listing Cycle Expansion for CME Refined Products

On December 3, 2012, the listing cycle for the following energy futures was expanded on CME Clearport and open outcry as follows: CME Code 5C A6 1U CRE 7Y UY YH MQ JS Product Description Chicago ULSD (Platts) vs. NY Harbor ULSD Heating Oil Futures Current Listed Month Last listed December 12 Last listed March 13 Last listed March 13 VX New Listing Cycle Current Year + 2 Years
Group Three ULSD (Platts) vs. NY Harbor ULSD Heating Oil Futures NY Jet Fuel (Platts) vs. NY Harbor ULSD Heating Oil Futures NY Jet Fuel (Argus) vs. NY Harbor ULSD Heating Oil Futures NY ULSD (Argus) vs. NY Harbor Last listed ULSD Heating Oil Futures December 12 NY ULSD (Platts) vs. NY Harbor ULSD Heating Oil Futures NY Heating Oil (Platts) vs. NY Harbor ULSD Heating Oil Futures Los Angeles Jet Fuel (Platts) vs. Last listed NY Harbor ULSD Heating Oil March 13 Futures Los Angeles Jet (OPIS) vs. NY Harbor ULSD Heating Oil Futures
Current year + 1 year
Current year + 2 years
Back to Summary
HKEx Complete Acquisition of LME

Effective December 6, 2012, the acquisition by Hong Kong Exchanges and Clearing Limited (HKEx) of LME Holdings Limited (LME Holdings) was finalized, bringing Asias leading operator of exchanges and clearing houses together with the worlds foremost non-ferrous base metals exchange. The acquisition provides infrastructure and resource benefits to both companies. LME Holdings is the parent company of The London Metal Exchange (LME).
RICI Index Adds NYSE LIFFES Robusta Coffee and Cocoa Futures
On November 12, 2012, Rogers International Commodity Index (RICI) announced plans to add NYSE Liffes Robusta Coffee and Cocoa futures contracts at the end of January 2013. The new contracts will replace the existing Intercontinental Exchanges Arabica Coffee and Cocoa contracts and will give NYSE Liffes Robusta Coffee and Cocoa contracts weightings of 2% and 1% respectively. The index was designed to meet the need for consistent investing in a broad-based international vehicle; it represents the value of a basket of commodities consumed in the global economy, ranging from agricultural to energy and metals products. The value of this basket is tracked via futures contracts on 37 different exchange traded physical commodities, quoted in five different currencies, (soon to be six with Sterling) listed on 12 exchanges in five countries, the company added.
First ETFs Tracking Platinum and Silver Prices on HKEx

On November 28, 2012, Hong Kong Exchanges and Clearing Limited (HKEx) listed three precious metals- related Exchange Traded Funds (ETFs) on the Stock Exchange of Hong Kong Limited (the Exchange), including the Exchanges first silver and platinum ETFs. According to HKEx, the ETFs will be the first three launched by ETF Securities (Hong Kong) Limited on the Exchange, a wholly-owned subsidiary of HKEx. All three ETFs - ETFS Physical Gold ETF, ETFS Physical Silver ETF and ETFS Physical Platinum ETF are designed to track the London benchmark prices of the respective metals.
FIS Launches OTC Options in NOLA Urea Fertilizer Market

Effective December 13, 2012, Freight Investor Services (FIS) launched an over-the-counter options contract with bilateral settlement in the NOLA Urea fob fertilizer market. As the market is highly volatile, with all stakeholders exposed to price risk, it makes it an ideal platform for introducing fertilizer options. The benefit to traders and hedgers is that the maximum loss will not exceed the cost of the premium. Contract Specifications are for Urea (gran) per short tonne, fob barge NOLA. LCH.Clearnet, the London-based clearing house, will clear the NOLA Urea fob fertilizer options contract. Traders requested an additional counterparty risk management capability and LCH. Clearnet have a history of firsts in freight and commodity derivatives clearing. The contract specifications are for Urea (gran) per short tonne, fob barge NOLA, with clearing provided via LCH.Clearnet.
CME Launches Implied InterExchange KCBT-CBOT Futures Spread

On December 10, 2012, CME listed the implied inter-exchange KCBT-CBOT Wheat futures spread (tag1151-SecurityGroup=KE, tag 55-Symbol=KB, tag 207-SecurityExchange=KBCB) will be listed on CME Globex. The inter-exchange spread will use the value IS in tag 762-Security SuybType
For Implementation Specification click here
CME Lists Aluminum MW U.S. Transaction Premium (Platts) Futures

Effective December 16, 2012, the Aluminum MW US Transaction Premium (Platts) futures (tag-1151 SecurityGroup=AUP, tag 55-Symbol=ST) is listed for trading on CME Globex. This contract is listed with, and subject to, the rules and regulations of COMEX. They are currently available for customer testing in New Release. Each contract is 55,116 lbs (25MT) and priced in US dollars and cents per pound and based on the monthly average of Platts Aluminum MW US Transaction Premium Assessment. It is design to help North American Aluminum commercial market participants to hedge their Aluminum Midwest premium risk exposure.
ICAP Launches Global Iron Ore Desk in London and Singapore

On November 6, 2012, a new global iron ore desk based out of London and Singapore was launched by ICAP plc, with brokers at each location working closely with coal, dry Forward Freight Derivative (FFA) and base and precious metal desks within ICAP. The new desk is a result of the introduction of a spot market, which has caused an increase in the volumes of iron ore swaps and options being traded over the past 18 months. Iron ore was traditionally sold using annual fixed price contracts; however the breakdown of the old system in favor of the new spot market appeals to end users and banks and traders as a hedging tool.
10
Back to Summary
datawatch December 2012 ETFS Launches ETC on a Commodity Basket ex Agriculture and Livestock
On November 29, 2012, ETFS Commodity Securities Limited issued a further ETC (Exchangeable Traded commodity) that has been tradable on Xetra. ETC name: ETFS Ex-Agriculture and Livestock DJ-UBSCI Asset class: commodity basket ISIN: DE000A1RX1P2 Management fee: 0.49 percent Benchmark: DJ-UBS Commodity ex-Agriculture and Livestock Index This enables investors to participate for the first time in the performance of a commodity basket excluding the agricultural and livestock sectors. The ETC tracks the performance of the commodity future from the energy, industrial metals and precious metals sectors.
SAVE THE DATE ZE COMPLIMENTARY EUROPEAN LUNCH & LEARN London, UK l Feb 21, 2013
11
Back to Summary
datawatch December 2012 ICE Futures EUA Auction Contract Auction Specifications
On November 20, 2012, ICE published the Auction specifications for the ICE Futures EUA Auction Contract. The Auction terms remain unchanged; the Auction volumes are as following: November 21, 2012: December 5, 2012: 6,500,000 EUA 5,758,000 EUA
Environmental Markets and Weather Services
For Auction Specification click here. For Contract Specification click here.
ICE Reopens Emissions Daily Futures Market and Launches Phase III Daily Futures
On December 10, 2012, ICE Futures Europe reactivated its spot emissions market after trade was frozen for nearly two years due to cyber thefts on a number of EU CO2 registries. The exchange reopened its daily futures market Certified Emissions Reductions (CER) and EU Allowances (EUA) from the second phase of Europes Emissions Trading Scheme. Also, ICE launched daily futures for EUAs from the schemes third phase (2013-2020). After cyber criminals hacked into several national emissions registries between 2010 and 2011 and stole more than 3 million carbon permits, ICE suspended spot trade early last year. On the same date, ICE Futures Europe introduced a new daily futures contract for Phase III EU Allowances. The Phase II and III EUA daily futures and the CER daily futures contract are physically deliverable and represent a lot size of 1,000 emission allowances and 1,000 certified emission reduction units respectively. Each EUA and CER represents an entitlement to emit one tonne of carbon dioxide equivalent gas. The daily futures contracts will expire on a daily basis. ICE Code Description ECX EUA ICE EUA Phase II Daily Futures Contract Daily EUA Phase- ICE EUA Phase III Daily Futures Contract 3Daily ECX CER ICE Certified Emission Reduction Units (CER) Daily Futures Contract CRE NY Jet Fuel (Argus) vs. NY Harbor ULSD Heating Oil Futures 7Y NY ULSD (Argus) vs. NY Harbor ULSD Heating Oil Futures UY NY ULSD (Platts) vs. NY Harbor ULSD Heating Oil Futures YH NY Heating Oil (Platts) vs. NY Harbor ULSD Heating Oil Futures The following graph shows the ICE EUA Phase II Daily Futures Contract and ICE Certified Emission Reduction Units (CER) Daily Futures Contract:
Data Source ICE*

For contract specification click here
EEX and Hungary Signed Contract for Auctioning of EUA Phase II

On November 28, 2012, the European Energy Exchange (EEX) successfully completed a contract agreement with the Hungarian Ministry of National Department for the auctioning of EU Emission Allowances (EUA) for the second trading period of the EU ETS. The volume of 2.5 million EUA will be auctioned on the EEX Sport Market in two tranches of 1.25 million EUAs each. The auction is to take place on December 17 and 20, 2012 with the bidding window open from 1pm to 3 pm CET. The Hungarian Ministry of National Development which has recently been admitted as auctioneer for Phase III auctions on EEX as the common transitional platform will also assume the role as auctioneer for the monetization of EUAs of Phase II.
For EEX Auction calendar click here
EEX Launches CER Spot Market and Expands Carbix Index

On November 20, 2012, the European Energy Exchange (EEX) expanded the CO2 secondary market with spot contracts on Grey Certified Emission Reductions (Grey CER) and Green Certified Emission Reductions (Green CER). In addition, EEX re-launched Carbix CO2 index for the Spot Market. The CER are issued for Clean Development Mechanism (CDM) projects which industrialized countries carry out in developing countries to reduce their emissions. The Grey CER product will be comprised of certificates from all projects involving the destruction of trifluoromethane (HFC-23) and nitrous oxide (N2O) from adipic acid production. The Green CER product covers all projects which can be used at the respective delivery day for means of compliance according to the valid rules of EU ETS. These contacts are offered by EEX starting December 5, 2012, with a fee holiday for exchange trading fees until the end of the first quarter of 2013 and are subject to the approval of the Exchange Council.
12
Back to Summary

EEX Code GREC DCER Description Green Certified Reduction Units Certified Reduction Units (Grey)

In Delivery 9G Month European Union Allowance (EUA) Serial Option GY None First three consecutive contracts months plus eight quarterly contracts on a rolling basis, starting with the nearest quarter; December contract month of subsequent years through 2020. December 2012, March 2013
Starting December 5, 2012, EEX also re-launched Carbix CO2 as an index of the CO2 index family (referred to as the European Carbon Index ECarbix) on a daily basis, as well as a monthly average value. Considering the primary and secondary market, all calculations are based on a weighted volume of transactions on the spot market. EEX starts with the introduction of an ECarbix (EUA). The following graph shows the Carbix CO2 emission allowances traded on EEX:
In Delivery CRE Month Certified Emission Reduction (CER) Futures In Delivery CRY Month Certified Emission Reduction (CER) Option Certified CPL Emission Reduction Plus(CERplus) Futures
VX
December 2012
GY
VX
December 2012; December 2013-2020
Data Source EEX*

For Contract Specification click here
Listing Cycle Expansion for CME Emission Futures and Options

On December 3, 2012, the listing cycle for the following emission futures and options was expanded as follows: Product In Delivery Month European Union Allowance (EUA) Futures CME CME Security Symbol Group EAF VX Current Listed New Listing Cycle Months December 2012; December 2013-2020 First three consecutive contracts months plus eight quarterly contracts on a rolling basis, starting with the nearest quarter; December contract month of subsequent years through 2020.
Emission Reduction Unit (ERU) Futures
REU
VX
December 2012; March 2013
Emission Reduction Unit (ERU) Option
ERO
GY
First three consecutive contracts months plus eight quarterly contracts on a rolling basis, starting with the nearest quarter; December contract month of subsequent years through 2020. First three consecutive contracts months plus eight quarterly contracts on a rolling basis through March 2015.
These contracts are listed with, and subject to, the rules and regulations of NYMEX. An example of the CPL December 2013 futures contract currently traded on CME is shown below.
In Delivery EAX Month European Union Allowance (EUA) Option
GY
13
Back to Summary
EPA Proposes Slightly Modified MATS for New Power Plants

On November 20, 2012, the U.S. Environmental Protection Agency (EPA) slightly weakened emission limits for mercury, particulate matter (PM), acid gases, and certain individual metals for future coal- and oil-fired power plants. The proposal was based on new information and analysis that became available to the agency after the Mercury and Air Toxics Standards (MATS) and Utility New Source Performance Standards (NSPS) were finalized on December 16, 2011. Later this year, the EPA received 20 petitions for reconsideration of the MATS and four for reconsideration of the utility NSPS. Petitioners raised concerns associated with measurement issues related to mercury and the data set to which the variability calculation was applied when establishing the new source standards for PM and hydrochloric acid (HCl). The objections was the agency did not base the sulfur dioxide (SO2) standard on a regulated utility unit and had finalized startup and shutdown provisions before the public had a chance to review and comment on them. The new proposal does not change final emission limits for existing power plants, but the changes to new source emission limits for filterable PM and HCl apply to new coal-fired generating units, and changes for filterable PM apply to new solid oil-derived fuel-fired generating units. Also, the proposal aims to revise the SO2 limit for solid oil-derived fuel-fired generating units, the filterable PM limit applicable to continental liquid oil-fired generating units, and the lead and selenium limits applicable to coal-fired generating units. The rule is expected to be finalized in March 2013, following a 30-day comment period after publication in the Federal Register.
Data Source- CME*
Private Companies Share Weather Data with NOAA

On November 14, 2012, two of the nations largest producers of wind-generated electric power shared privately-collected weather data with NOAA, providing agency scientists with additional observations from wind farms across the nation for research and operations. Iberdrola Renewables of Portland, OR, and NextEra Energy Resources of Juno Beach, FL, signed an agreement to share data with NOAA. The companies promised to share valuable weather observations from instrumented towers in their wind farms and wind speed data from instruments atop wind turbines. These observations are used in operational model forecasts produced by NOAAs National Weather Service. Wind data at these heights are not routinely observed and are of great interest to many industries and researchers involved in renewable energy, aviation, and air quality.
14
Back to Summary
FX, Interest Rates, Credit and Equity Indexes S& P Dow Jones Indices and TMX Launch Preferred Share Laddered and Equal Weight Sector Indices
On November 19, 2012, S&P Dow Jones Indices and TMX Group Inc launched three new Canadian Indices including: S&P/TSX Preferred Share Laddered index, the S&P/TSX Equal Weight Global Gold index and the S&P/TSX Equal Weight Industrials index. Each of the indices has been licensed to BMO Asses Management for potential exchange traded products to be listed on Toronto Stock Exchange. The indices were created to fill the needs for industry specific indices that are liquid enough to serve as the basis for investment products and relevant enough to serve as key benchmarks of performance. Index Code TXPL TXGE TXIE Description S&P/TSX Preferred Share Laddered Index S&P/TSX Equal Weight Global Gold Index S&P/TSX Equal Weight Industrials Index
ICE Introduces New FX Products

On November 26, 2012, Intercontinental Exchange (ICE) announced it will launch two new cash-settled foreign exchange futures contracts on ICE Futures US for the trade date of January 28, 2013. The contracts will be listed on the ICE platform and are eligible for the waiver of exchange and clearing fees for electronicallyexecuted currency pair futures which extends into 2013. The contracts also are available for exchange-for-physical (EFP) transactions and block trading. There are no EFP surcharges beyond the standard exchange and clearing fees of $0.30 per contract side for emerging market currencies. ICE Code KIU KBX Description Indian Rupee / U.S Dollar Brazil Real / U.S. Dollar Contract Size 2,000,000 Rupee 100,000 Real
For Product Specification click here
CME Launches Interest Rate Swap Futures

On December 3, 2012, CME listed USD Interest Rate Swap futures for trading on CME Globex. The futures will be 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 and 30 years). Contracts will be 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. At expiration, 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. The contracts are subject to the rules and regulations of CBOT CME Code B1U N1U F1U T1U ZB ZN ZF ZT I3 SR SA Description 30-Year USD Interest Rate Swap Futures 10-Year USD Interest Rate Swap Futures 5-Year USD Interest Rate Swap Futures 2-Year USD Interest Rate Swap Futures 30-Year Treasury Bond Futures vs. 30-Year USD "Deliverable" Interest Rate Swap Futures 10-Year Treasury Note Futures vs. 10-Yr USD "Deliverable" Interest Rate Swap Futures 5-Year Treasury Note Futures vs. 5-Year USD "Deliverable" Interest Rate Swap Futures 2-Year Treasury Note Futures vs. 2-Year USD "Deliverable" Interest Rate Swap Futures 30-Year "Financial" Swap Futures vs. 30-Year USD "Deliverable" Interest Rate Swap Futures 10-Year "Financial" Swap Futures vs. 10-Year USD "Deliverable" Interest Rate Swap Futures 5-Year "Financial" Swap Futures vs. 5-Year USD "Deliverable" Interest Rate Swap Futures
For S&P/TSX Indices Specification click here
BM&FBOVESPA Trades New ETF

On November 12, 2012, BM&FBOVESPA made a new exchangetraded fund (ETF) called CAIXA ETF Ibovespa Index Fund (ticker: XBOV11) available for trading on BM&FBOVESPA. XBOV11 is indexed to the Bovespa Index - Ibovespa, which tracks the performance of the shares issued by leading electric, water and sewage, and gas utilities.
To learn more about Bovespa Index Ibovespa please click here
ASX to Quote Australian Government Bonds

On November 1, 2012, Australian Securities Exchange (ASX) got a step closer to the quoting of Australian Government Bonds on a securities exchange, after the senate passed the Commonwealth Government Securities Legislation Amendment (Retail Trading) Bill. By enabling retail access to exchange-traded government bonds, Australias savings pool will be diversified while: volatility is reduced; the countrys economic competitiveness will be improved; and there will be greater domestic savings for investment in local infrastructure and corporate expansion. Trading is expected to commence in the first half of 2013, subject to regulatory clearance.
For Contract Specification click here
15
Back to Summary
FX, Interest Rates, Credit and Equity Indexes
New SPDR ETF Launched on Xetra

On November 20, 2012, SPDR (State Street Global Advisors) issued a new exchange-listed equity index fund that has been tradable on Xetra ever since. ETF name: SPDR BofA Merrill Lynch Emerging Markets Corporate Bond UCITS ETF Asset class: bond index ETF ISIN: IE00B7LFXY77 Total expense ratio: 0.50 percent Distribution policy: distributing Benchmark: BofA Merrill Lynch Emerging Markets Diversified Corporate ex-144A Index First time investors can participate in the performance of emerging market corporate bonds denominated in US dollars. All bonds admitted to the reference index have an outstanding volume of at least USD 500 million and a residual maturity of at least one year, and must also represent senior and secured corporate debt issued in the US or Europe. The index currently comprises bonds from companies located in Argentina, Bahrain, Barbados, Brazil, China, Colombia, Costa Rica, Egypt, Hong Kong, Indonesia, Israel, Jamaica, Kazakhstan, Korea, Kuwait, Malaysia, Mexico, Nigeria, Peru, Russia, Saudi Arabia, Singapore, South Africa, Thailand, Trinidad, Turkey, the UAE, Ukraine and Venezuela.
Data Source CME*
For product specification click here
Eurex Clearing Launches EurexOTC Clear for Interest Rate Swaps

On November 13, 2012, EurexOTC Clear for Interest Rate Swaps (IRS) went live. The launch got support from Eurex Clearings cooperation banks Barclays, Citigroup Global Markets Ltd., Credit Suisse, Deutsche Bank and JP Morgan. In addition, Commerzbank, HSBC, Royal Bank of Scotland, UBS and Basler Kantonalbank joined the service for the production start. All ten members have successfully cleared their first transactions via EurexOTC Clear for IRS. BNP Paribas, Goldman Sachs, Morgan Stanley, Nomura, NORD/LB, Socit Gnrale and further market participants are preparing to join the service as clearing members. The support from major OTC dealers and Eurex Clearings timely launch facilitated preparations for the onboarding of buy-side clients ahead of the start of the clearing obligation in Europe, which is anticipated to commence in the second half of 2013. This new clearing service is intended to deal with the needs of clients focusing on safety and efficiency. Eurex Clearings segregation solution the Individual Clearing Model offers protection and portability with full individual segregation of positions and customer collateral as well as delivers capital efficiencies to promote cost efficient compliance with the new regulatory requirements. Hester Serafini, Head of Europe and Asia OTC Clearing at JP Morgan confirmed: To deliver the full benefits to buy-side clients the industry needs to have Client Clearing Documentation finalized. Eurex Clearing together with major market participants is very engaged in this industry effort. With its new service EurexOTC Clear for IRS, Eurex Clearing will fully integrate the clearing and collateralization of OTC and listed derivatives in a single clearing house within one single framework. The new service, which will be further expanded in 2013, is one important element of Eurex Clearings comprehensive roadmap in preparing for the changing regulatory environment.
Xetra Launches New iShared ETF

On November 28, 2012, Deutsche Borse XTF launched three new bond index ETFs and one new equity index ETF issued by iShares. Product iShares Global Government AAAAA Capped Bond iShares Global Corporate Bond iShares Barclays Capital Euro Corporate Bond Interest Rate Hedged iShares MSCI Mexico IMI Capped Asset Class Bond index ETF Bond index ETF Bond index ETF Equity index ETF
The following graph shows similar products to the newly released Bond Index ETF. The products are 30 year US Treasury Bond and the Long-term US Treasury Bond.
16
Back to Summary
datawatch December 2012 CBOE Introduces CBOE Low Volatility Index

On November 30, 2012, CBOE began disseminating values for a new benchmark index, the CBOE Low Volatility Index (LOVOL). The CBOE LOVOL Index is designed for investors whose preferences have shifted from investing in riskier assets to lowervolatility assets. The new index aims to provide investors with the ability to replicate an investment strategy which is subject to less downside volatility in a portfolio of S&P 500 stocks, while still preserving the bulk of market gains. The CBOE LOVOL Index is a blend of the CBOE S&P 500 BuyWrite Index and the CBOE VIX Tail Hedge IndexSM. The CBOE LOVOL Index measures the performance of a portfolio that overlays SPX and CBOE Volatility Index calls over the S&P 500 Index. LOVOL Index value is disseminated every 15 seconds during the trading day.
FX, Interest Rates, Credit and Equity Indexes
NYSE Euronext Expands Short Term Options

On November 15, 2012, NYSE Euronexts U.S. options exchanges, NYSE Amex and NYSE Arca, announced that they are the first exchanges to receive SEC approval to expand the listing and trading of their Short Term Option Series program from a single week to five consecutive weeks. The products will be available as follows: AAPL, BAC, BP, C and XLF on NYSE Arca Options and EEM, GLD, IWM, QQQ, and SPY on NYSE Amex Options. NYSE Amex was the first exchange to be approved to list and trade Short Term Option Series on single stocks and exchangetraded funds (ETFs) on June 4, 2010. Weekly options trading on both NYSE Amex and NYSE Arca accounted for over 223 million contracts traded since inception. These options exchanges present a compelling dual market structure with the choice of price-time priority on NYSE Arca Options or the traditional market-maker model and expanded array of services of NYSE Amex Options.
17
Back to Summary
datawatch December 2012 Eurex Exchange Launches Advanced Derivative Trading System
On December 4, 2012, Eurex Exchange launched advanced trading system which benefits participants in significantly better performance, more choice and enhanced functionalities all based on Eurex Exchanges reliability. The roll out started with property, inflation and weather derivatives, a total of 24 products. The production launch will be followed by a product migration phase in a stepwise approach; next phase is scheduled for February. Full roll-out is expected to conclude in May 2013. Its key features include: Based on Deutsche Brse Groups global trading architecture, Offers greater system flexibility, allowing for reduced timeto-market when introducing new financial products and new functionalities, Latency reduced to minimum due to high performance messaging architecture allowing faster communication, Includes enhanced calendar spreads, user-defined strategies and streamlined processing and reporting. Jrg Spillmann, member of the Eurex Executive Board and responsible for IT & Operations, said this next generation system will substantially change the way traders and investors access the worlds most dynamic markets, adding it will establish a clear competitive advantage for their participants.
Other Matters
Thomas Book, member of the Eurex executive board and responsible for clearing, said: Our new clearing offering for securities lending has been designed with support from key market participants who have committed to utilize the service to achieve a substantial reduction in capital allocation. We have completed testing of our offering and are ready to start a pilot phase with our early adopters. Our set-up will enable customers to make use of their existing connectivity to these dynamic service providers for trade and collateral management and to take the benefit of substantial improvements to the current market structure by delivering significant capital and operational benefits to all participants, added Book.
IHS Adds New Content

On November 6, 2012, Information Handling Services, Inc. (IHS) announced the addition of IHS content including IHS Standards Expert - the industry-leading standards management solution, to IHS Goldfires expansive collection of pre-indexed technical knowledge. IHS Goldfire utilizes semantic technologies that allow engineers and other technical personnel to find relevant answers across multiple languages identify insights across disparate data sources, and locate experts both inside and outside their organizations in order to rapidly make more informed product decisions. Chad Hawkinson, Vice President of Product Design at IHS said: With the addition of IHS Standards Expert, IHS Goldfire gives engineers the ability to quickly search across more than 1.6 million standards, codes, specifications, and related publications to identify current accepted best practices for engineering technologies that affect product or process design and development.
Wall Street Journal Launches MarketWatch Retirement Service

On November 14, 2012, The Wall Street Journal Digital Network launched a section on MarketWatch.com called MarketWatch Retirement, the Networks free portal for market news, investment ideas and personal finance. It will feature online news, advice and analysis targeted towards people saving for retirement. The new section is vowed to be one of the most comprehensive resources for retirement news and information on the web. With an estimated 15 million unique visitors per month, MarketWatch Retirement said it will be an indispensable resource for people to make thoughtful and timely decisions to maximize their resources for retirement days.
ASIC Changes Market Integrity Rules for Australia

On November 21, 2012, Australian Securities & Investments Commission (ASIC) made new market integrity rules to address risks emerging from developments in market structure, including growth in automated trading and the changing nature of dark liquidity. These new rules tend to balance the need for additional regulation to address the changes in the equities markets without succumbing to the unsubstantiated hysteria that has plagued the public debate on these issues in recent months. The rules will be phased in over 18-month period.
For the ASIC Market Integrity Rules click here
Eurex Launches Securities Lending CCP Service

On November 22, 2012, Eurex Clearing launched Europes first central counterparty (CCP) service for the bilateral securities lending market, in partnership with Pirum Systems and Clearstream Banking. The new CCP service holds the key features of the Overthe-Counter market for both lending and borrowing counterparties. The clearing house as single counterparty to all trades reduces counterparty risk exposure and eliminates the need for multiple credit evaluations.
18
Back to Summary
datawatch December 2012 Singapore Broker to Enter ICE Futures Europe Markets
On November 29, 2012, Intercontinental Exchange (ICE) announced that a number of Singapore ICE Block Broker Exchange Participants can have access to ICE Block to enter Block Trades, as long as they hold a Capital Market Services (CMS) License, as required by Monetary Authority of Singapore pursuant to requirements under Section 82(1) of the Securities and Futures Act (CAP. 289).
Other Matters
We are very pleased to have signed this agreement with CFA as first non-Chinese market operator and look forward to enter into a fruitful partnership with this leading institution of Chinas futures market, said Michael Peters, member of the Eurex Executive Board. Our first joint training sessions have turned out as very successful, and we are already planning the next seminars to be held in early 2013.
CBOE Holdings to Transition SPXpm from C2 To Hybrid Trading

On November 29, 2012, CBOE Holdings announced plans to transition its SPXpm product from the companys C2 Options Exchange (C2) to CBOE, where it will be traded on CBOEs hybrid trading model incorporating both electronic and open outcry trading. The transition will consolidate the companys entire S&P 500 options product line on CBOE, which is expected to increase access and liquidity by exposing the product to a broader user base. The companys pm-settled SPX options (including SPXpm, SPX Weeklys and SPX Quarterlys) will trade in CBOEs hybrid environment under ticker SPXPM. Additionally, CBOEs flagship SPX option, which is am-settled, will continue to trade in Open Outcry environment under ticker SPX. According to William J. Brodsky, CBOE Holdings Chairman and CEO, Moving SPXpm to CBOEs hybrid trading environment opens up access to a very active SPX trading crowd on the floor of the CBOE. CBOE plans to begin transitioning SPXpm options in the first quarter of 2013, pending regulatory approval.
Bursa Malaysia Signs MoU with Shanghai Stock Exchange

On November 16, 2012, Bursa Malaysia Berhad (Bursa Malaysia) and Shanghai Stock Exchange (SSE) signed a Memorandum of Understanding (MoU) to pursue a continuing relationship for the mutual benefit of the financial services industry in Malaysia and China. Based on the MoU, SSE and Bursa Malaysia have agreed to facilitate the development of communication channels for the sharing of information between both exchanges. This agreement covers aspects such as structuring of listed products, development of debt securities products and debt trading facilities, corporate governance, exchange of staff and research projects. It is an interesting time to see whether the MoU between Bursa Malaysia and SSE can bring benefits to both exchanges and markets or not.
CFA and Eurex to Enhance Futures Market Structure in China

On December 2, 2012, China Futures Association (CFA) and Eurex Group signed a comprehensive cooperation agreement at the 8th International Derivatives Forum in Shenzhen. The agreement facilitates the further development of both derivatives markets. Both partners had already started working together and hosted joint training sessions over the last months in the Peoples Republic of China. The signing of the agreement will transform and enhance the cooperation further. Its worthy to note that Eurex is the first international and globally operating derivatives market to enter into a cooperation agreement with the leading Chinese futures association. In accordance with the Memorandum of Understanding: They should start a comprehensive sharing of knowledge and information on business areas and regulatory developments, Conduct joint cooperative research in order to further develop knowledge on domestic and global derivatives markets, To explore joint initiatives to create further value to the member firms of Eurex and CFA, Continuation of joint training and education initiatives for CFA member firms, as well as regular visits from each organizations senior management. According to Liu Zhi Chao, CFA Chairman, We are looking forward to build a new bridge for further exchange and cooperation between CFA and Eurex through this MoU.
19
Back to Summary
December 2012
Monthly analytics for Power, Natural Gas, Crude Oil and Environmental markets. Graphs prepared with ZEMA.
Actual Weather (AccuWeather) With the onset of winter, a steep decline in temperatures was observed on the East Coast. The weather on the West Coast remained mild and temperature declined very gradually.
North American Electricity DA Prices (ICE) Eastern power prices dropped between November and December on the backs of lower natural gas prices and sufficient generation resources. In New York, prices fell by 8 USD/MWh to 57 USD/ MWh. In New England, electricity prices also declined with ISONE boasting generation capacity of 33,000 MW, which exceeds the peak demand of 22,355 MW. California prices remained on the same level with mild temperature.
North American Electricity Forward Curves (ICE)

CAISO Electricity Forward Curves (ICE)
With expectations for steady fundamentals, electricity forwards did not change much between November and December. The longterm trend remained on the same level as in the previous month.
PJM Electricity Forward Curve (ICE)
20
Interested in ZEMA Dashboard? Contact us to learn more
December 2012
Monthly analytics for Power, Natural Gas, Crude Oil and Environmental markets. Graphs prepared with ZEMA.
Henry Hub Natural Gas Forward Curve (ICE) With unchanged fundamentals on the long term outlook, ICE Henry Hub natural gas futures remained at approximately the same level with only 2% change in the price compared to November 2012.
North American Natural Gas Spot Prices (ICE) With the warmer-than-average weather expected across much of the U.S., the natural gas spot prices tend to decline. However, on some days, temperature in some east coast cities, like New York, Philadelphia and Washington, were 9 to 13 degrees below norm creating high system demand supporting higher price volatility in Transcontinental Gas hub.
Crude Oil Brent vs. WTI Prompt-Month Contract (NYMEX) Prompt month contract for Brent Crude Oil stayed 14 USD/Bbl above WTI prices on average in the past twelve months. Brent Crude price continued to fall for the third consecutive month to 105 USD/Bbl while WTI price slightly increased to 87 USD/Bbl.
Forward Curve (NYMEX) WTI crude oil futures on the NYMEX moved higher in comparison with November because of optimism regarding a solution to the fiscal cliff issue as well as US crude supplies dropping to 4.1 million barrels in the beginning of December. In December, Brent future prices rose by more than 1 USD/ Bbl to 109 USD/Bbl.
21
Interested in ZEMA Dashboard? Contact us to learn more
datawatch December 2012 Argus Launches ANEA LNG Forward Swaps Assessments
Singapore, 4 December 2012 Leading energy and commodities price reporting organisation Argus has launched a new series of northeast Asian LNG forward swaps assessments in the Argus LNG Daily report, known as ANEATM swaps. The launch reflects growing liquidity in LNG derivatives, as well as industry calls for a reliable forward curve. ANEA forward swaps assessments cover three forward-month periods from the furthest ANEA physical spot assessment. This means that market participants can currently see the value of northeast Asian LNG swaps trading for March, April and May 2013. ANEA physical spot assessments represent cargoes delivered exship (des) to ports in Japan, South Korea and Taiwan, trading 6-12 weeks before the date of delivery. The LNG market is evolving at a rapid pace and the development of a financial derivatives market is key to enabling market participants to manage their risk effectively, Argus Media chairman and chief executive Adrian Binks said. The launch of ANEA forward swaps assessments in the Argus LNG Daily report provides stakeholders with transparency about the costs of hedging. Argus new ANEA swaps coverage complements the Argus LNG Daily reports existing suite of Asia-Pacific and European spot price assessments, market commentary and global netback pricing. The Argus LNG Daily report provides price assessments for AsiaPacific, the Middle East, west Africa, Europe and the Caribbean, information about shipping movements, market-moving 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 developments, as well as to help shape commercial strategies.

Southeast Asia will play a key role in global LNG trading, as Singapore and Malaysia prepare to receive their first LNG imports, and Thailand and Indonesia expand their import requirements, Argus Media chairman and chief executive Adrian Binks said. The new Argus southeast Asian price indications are an important step towards price identification in the region. Argus new ASEA coverage complements the Argus LNG Daily reports existing suite of Asia-Pacific and European spot price assessments, market commentary and global netback pricing. The Argus LNG Daily report provides spot price assessments for Asia-Pacific, the Middle East, west Africa, Europe and the Caribbean, information about shipping movements, marketmoving 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 developments, as well as to help shape commercial strategies.
Argus Expands Coverage of Argus Latin American Markets

Argus has recently expanded its coverage of Latin American crude, refined products, ethanol and LPG markets as part of Argus Latin Markets. The new service provides insightful market data and analysis on the rapidly changing global oil markets and trade flows as well as their impact on Latin American markets.
Request more information here
Argus Launches First Southeast Asian LNG Price Indication

Singapore, 4 December 2012 Leading energy and commodities price reporting organisation Argus has launched the LNG industrys first southeast Asian delivered ex-ship (des) price indications, known as the ASEATM index, in the Argus LNG Daily report. The launch reflects the need to improve price transparency ahead of the startup of Singapore and Malaysias first LNG import terminals early next year. The ASEA index is designed to offer the LNG industry a reliable price indication for cargoes for delivery to Indonesia, Malaysia, Singapore and Thailand, trading 6-12 weeks before the date of delivery. The index is split into three forward half-month periods, in line with Argus existing Asia-Pacific physical price assessments. In the absence of traded volumes in southeast Asia, Argus will derive the ASEA price based on a netback calculation from other Argus regional physical price assessments.
Increased production of crude oil in the US and ever rising demand from Asia are reshaping the way oil is traded. For Latin America, this shake up and the resulting uncertainty as to future demand patterns means that crude exports are constantly looking for new destinations such as China and India. At the same time, intra-regional refined products trade remains a key balancing tool. And, the growth of biofuels production in Brazil and Argentina has sharply increased Latin Americas connection to North America and Europe. In this changing landscape, the new Argus Latin Markets weekly market service provides insight on developing trends by highlighting detailed pricing information for the most actively traded crudes, refined products, ethanol, and LPG markets. Expanded coverage also includes: Comprehensive list of 40 price assessments for actively traded energy commodities Summary and overview of global benchmark prices for quick reference Insightful industry news Freight assessments for the most active and relevant routes for export and import of commodities Analytical trend charts for crude, refined products and LPG assessments
If you are not an existing Argus Latin Markets subscriber, request your complimentary trial here
22
Back to Summary
datawatch December 2012 ZEMA Adds More Data Sources

ZE is constantly expanding its data coverage. ZEMAs 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 November 2012 issue. They are: Data Source Bentek CME CME CME CME CME CME ICE IESO NEISO OPA PJM PJM PJM PJM PJM PJM PJM PJM PJM PJM PJM PJM PJM PJM PJM PJM PJM PJM PJM PJM Report Supply Demand Balance Analytic Report Daily Final Pre-Clearing Prices - FX Products Final Pre-Clearing Prices - Commodity Final Pre-Clearing Prices - COMEX Final Pre-Clearing Prices - Weather Products Final Pre-Clearing Prices - Interest Rate Final Pre-Clearing Prices - NYMEX Products S2D IFEU Options Ontario Wind Forecast Current Hourly Marginal Price Generation Report eSchedule Deficiency Credit Summary Black Start Charge Summary eSchedule RT Daily Energy Transactions eSchedule FRR LSE Schedules 9-5 and 9-6 Charges eSchedule Day Ahead Scheduling Reserve Summary eSchedule Expansion Cost Recovery Credit Summary eSchedule Generation Deactivation Refund Charge Summary eSchedule Operating Reserve for Load Response Charge Allocation eSchedule Non-Firm PTP Credit Summary eSchedule Network ARR Target Credit Summary eSchedule Generation Deactivation Charge Summary eSchedule Inadvertent Interchange Charge Summary eSchedule DR and ILR Compliance Penalty Charge and Credit eSchedule Operating Reserve for Load Response Charge Allocation (Pre FERC 745 (04.01.2012)) eSchedule Operating Reserve for Load Response Credit (Pre FERC 745 (04.01.2012)) eSchedule Regional Balancing Operating Reserve Charge Summary eSchedule Hourly Transmission Congestion Credits eSchedule Reactive Services Charge Summary eSchedule Low Voltage NITS Charge Summary eSchedule DASR Load Reconciliation Charge Summary Region North America Global Global Global Global Global Global Europe North America North America North America North America North America North America North America North America North America North America North America North America North America North America North America North America North America North America North America North America North America North America North America PJM PJM PJM PJM PJM PJM PJM PJM PJM PJM PJM PJM Reuters

eSchedule DA Daily Energy Transactions eSchedule Firm PTP Credit Summary eDataFeed Wind Forecast Meter Correction Allocation Charge Summary eSchedule FRR LSE Reliability Charge Summary eSchedule Synchronized Reserve Tier 2 Charge Summary eSchedule Operating Reserve for Load Response Credit eSchedule NITS Offset Charge Summary eSchedule Advanced Second Control Center Charge Details eSchedule Schedule 1A Credit Summary eSchedule Sched 1A Load Recon Charge Summary eSchedule Econ Load Response Zonal Charge Allocations Daily Currencies Quote North America North America North America North America North America North America North America North America North America North America North America North America Global
23
Back to Summary
In Depth
FALLING FROM A HEIGHT THE IMPACT OF THE FISCAL CLIFF ON THE ENERGY SECTOR
by Ian Mathieson
Taking Stock of the Fiscal Cliff

The energy sector has recently become a bastion of hope for the US. Despite the year-on-year growth in the shale gas and oil industries, continued bickering in Washington is causing serious concern over the consequences a no compromise could have on the sector. Could a fall from the Fiscal Cliff at year-end burst the bubble for the sector or could the sector itself be the catalyst for keeping the economy afloat during stormy weather? Also, how dependent is growth in the green energy sector on a conclusive decision being made before December 31st? With the renewable energy Production Tax Credit (PTC) for wind up for debate in the New Year, what impact could the Fiscal Cliff have on this sector in more austere times? Finally what will be the wider global ramifications from the Fiscal Cliff, particularly across the water in Europe and Asia?
The Fiscal Cliff was created by the US government through the Budget Control Act of 2011. The act was a seemingly smart measure to ensure that budget talks and negotiations on the debt ceiling in the future would lead to an actual agreement to tackle the problems, instead of the typical stopgap measures. Public debt in the US stands at more than $11 trillion dollars, which represents almost 75% of the GDP1. These numbers have caused concern about the overall financial health of the United States and continue to cause consternation about the seriousness of the impending Fiscal Cliff. Whilst this self-created precipice had an intention of forcing tough problem-solving in Washington, so far it has produced little compromise in the House of Representatives. If no deal is reached on January 1st, it will result in massive spending cuts and sweeping tax increases. A number of tax credits will expire including the Bush Tax Cuts, the payroll tax cut and Alternative Minimum Tax relief. Federal unemployment benefits will expire and sequestration will begin. In total, sequestration would total $1.2 trillion in spending cuts over 10 years across both defense and non-defense, mandatory and discretionary spending.2 The Congressional Budget Office (CBO) estimates that the result of these tax increases and spending cuts could cut the deficit from just over a trillion dollars in 2012, to less than 600 billion dollars in 2013.3 The agency also believes that to completely fall off of the Fiscal Cliff would more than likely push the US into a recession in 2013.4 They estimate a GDP reduction of up to 3% and an unemployment rate of 9.1% in 2013 if the above-mentioned tax cuts and sequestration programs come into full effect.
Impacts on Oil and Gas in the US

According to the Bureau of Labor Statistics, the number of people employed by oil and gas extraction has grown by 10% for each of the last two years.5 This is remarkable compared to the total non-farm jobs, which have seen growth of a little over 1% in the same period.
24
Back to Summary
In Depth
This growth in jobs in the industry has come largely about due to the extensive development of shale oil and gas in the US. The expansion in hydraulic fracking in recent years has been a large factor in the depression of natural gas prices. While a financial slow down caused by the Fiscal Cliff could impact demand for natural gas, the recent boom has brought with it extremely low prices, which could mean that the demand impact would be minimal. Politically natural gas is good for the US economy in terms of jobs and energy independence. With both of these factors in play, it would seem unlikely that either political party would want to risk rocking the boat. If no agreement is reached to avoid the Fiscal Cliff and demand for natural gas suffers, there will likely still be significant export opportunities. According to Federal Energy Regulatory Commission (FERC), there are currently 19 Liquefied Natural Gas (LNG) export terminals that have been proposed across North America. Just recently, the US Energy Department released a report suggesting that it would have a net economic gain by exporting its newly discovered glut of natural gas.6 This is a contentious issue in the US where some people argue that natural gas should be kept in North America to help keep gas prices low and thus maintain a competitive advantage over other markets. Others contend that the free market should allow cheap North American
Figure 1. (Sources: Bureau of Labour, ICE.)
shale gas to be sold on the open market at the risk of rising gas prices at home. The decision on these export facilities is not due until 2013, but that decision could have a larger bearing on the price of natural gas than the Fiscal Cliff.
Impact on Wind Power

Renewable energy on the other hand could face a different impact depending on the outcome of the Fiscal Cliff. The renewable energy PTC for wind in particular is set to expire at the end of 2012 and could be on the table during negotiations between the two sides. The subsidy, currently valued at 2.2 cents per kilowatt-hour for wind power, has helped installed wind power capacity to grow from 1.5GW in 1992 to over 50GW in 2012.7
The wind PTC has been successful over the past 20 years yet there is much debate over whether it should be renewed or not. The growth in wind generation projects has increased the US ability to manufacture wind generators to just under 14 GW annually.8 The wind industry now supports approximately 30,000 workers in the US.9 Beyond the PTC, installation of additional wind capacity will most likely depend on Renewable Portfolio Standards (RPS), and overall demand. Currently, 29 states have binding RPS. These standards have helped to drive the development of wind generation in the US. However, in some cases such as Texas, the RPS has already been exceeded in large part thanks to the increase in wind production. From a regulatory
25
Back to Summary
In Depth
point of view there is the potential that states could increase their RPS in the future. Also, for those states that have a percentage RPS, an increase in demand would necessitate increased renewable generation. At this point however, EIA is estimating limited demand growth over the next few years.10 The length of a PTC renewal has historically had an impact on the speed of development that it creates. When there is uncertainty surrounding PTC renewal there is typically a dramatic increase in development of wind generators. This occurred in 2012 and is similar to the development that occurred prior to the previous renewals in 2000, 2002 and 2004. This highlights one of the benefits of a short-term PTC renewal, a greater likelihood of short term economic boost. If an indefinite or long term PTC is created, there is not necessarily a sense of urgency to build wind generation quickly, particularly if the previous year had been production heavy due to uncertainty. Further, many people believe that it is important for wind generation to stand on its own feet in the market which would require the PTC to eventually disappear. Some believe that while the PTC is in place, manufacturers will never have the impetus to decrease costs and improve their technology to the point where wind can compete without the subsidy. These ideas might be tested depending on the outcome of the Fiscal Cliff negotiations. It is important to note that while the PTCs for other resource types such as biomass and municipal solid waste will remain in effect until the end of 2013, their impact on the generation stack of the United States is limited at this point.
And the Global Ramifications

What does this all mean for the rest of the world? It is possible that failure to act on the Fiscal Cliff could have a domino effect around the world. Europe has barely moved back from the edge of its own cliff and a recession in the US could push them over the edge. The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) released a report last week which warned of significant repercussions in Asia if the US continues off the Fiscal Cliff in the New Year. In a worst-case scenario, the U.N. model predicted that GDP growth in China could slow by nearly a full percentage point.11
Closing thoughts
The Fiscal Cliff is likely to have an impact on the energy industry regardless of negotiations in the next couple of weeks. If a deal is struck which prevents an economic fall into recession, then demand for natural gas could continue to be strong and spur further development of shale gas. Further, any Fiscal Cliff development will impact wind generation through a decision on the production tax credit. If no deal is struck and the US feels the full pain of the Fiscal Cliff, development of new wind generation could slow dramatically. Furthermore, the US might look to export its natural gas in order to continue benefiting from the development of the domestic fracking operations.
26
Back to Summary
In Depth
American Wind Energy Association. (2012, 10 18). Industry Statistics. Retrieved 12 17, 2012, from American Wind Energy Association: http:// www.awea.org/learnabout/industry_stats/index.cfm 2 Congressional Budget Office. (2011, 10 26). Discretionary Spending. Retrieved 12 17, 2012, from Congressional Budget Office: http://www. cbo.gov/publication/42728 3 Page, B. (2012, 5). Congressional Budget Office. Retrieved 12 17, 2012, from http://www.cbo.gov/sites/default/files/cbofiles/attachments/ FiscalRestraint_0.pdf 4 Ibid. 5 U.S. Bureau of Labor Statistics. (n.d.). Employment, Hours and Earnings from Current Employment Statistics. Retrieved 12 17, 2012, from Bureau of Labor Statistics: http://data.bls.gov/cgi-bin/dsrv?ce 6 Lefebvr, B., Tracy, T., & Cameron, D. (2012, 12 05). UPDATE:DOECommissioned Study Shows LNG Exports Generally Good for U.S. Retrieved 12 17, 2012, from Bloomberg Businessweek: http://investing.businessweek.com/research/stocks/news/article. asp?docKey=600-201212051627DOWJONESENRGYSVC0018141
1&params=timestamp%7C%7C12/05/2012%204:27%20PM%20ET %7C%7Cheadline%7C%7CUPDATE%3ADOE-Commissioned%20 Study%20Shows%20LNG%20Exports%20Generally%2 7 American Wind Energy Association. (2012, 10 18). Industry Statistics. Retrieved 12 17, 2012, from American Wind Energy Association: http:// www.awea.org/learnabout/industry_stats/index.cfm 8 Brown, P. (2012, 6 20). U.S. Renewable Electricity: How Does the Production Tax Credit (PTC) Impact Wind Markets. Retrieved 12 17, 2012, from Congressional Research Service: http://www.fas.org/sgp/ crs/misc/R42576.pdf 9 Ibid. 10 Ibid. 11 United Nations Economic and Social Commission for Asia and the Pacific. (2012, 12 14). Asia-Pacific increasingly affected by global economic slump, says ESCAP. Retrieved 12 17, 2012, from United Nations Economic and Social Commission for Asia and the Pacific: http://www.unescap.org/news/asia-pacific-increasingly-affected-globaleconomic-slump-says-escap
About ZE PowerGroup Inc ZE 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 ZEMA ZEMA 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. Disclaimer ZE 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.
27
Back to Summary

ZE Datawatch - December 2012

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ZE Datawatch - December 2012

Uploaded by

Copyright:

Available Formats

December 2012

A pan-European Natural Gas Market by EEX

Fossil Fuel Markets

ZEMA Market Dashboard

News from Data Vendors

Agriculture, Forestry and Metal Markets

Environmental Markets and Weather Services p. 12-14

datawatch Editors letter

Olga Gorstenko Phone: 778-296-4183 Email: olga@ze.com

Advertising & Vendor Relationships

Bruce Colquhoun Phone: 604-790-3299 Email: bruce.c@ze.com

ZEMA Suite Inquiries

datawatch December 2012 EEX Launches Power Day Futures

NASDAQ OMX Launches New Genium INET Functionality and Products

Data Source: EEX*

EEX Expands Transparency Platform with Generation Data from Bulgaria

CME Delists ERCOT and MISO Products

datawatch December 2012

To learn more, click here.

There was no open interest in these contracts.

Platts to Extend German Forward Curve Assessments

BRIX Launches Weekly Contracts

See an example of the gasoline futures already traded on CME below:

Genscape Launches ARA Weekly Gasoil Storage Report

Data Source: CME*

Argus Launches ANEA LNG Forward Swap Assessments

Platts to Standardize Global Bunker Fuel Conversions

datawatch December 2012 Platts Launches US Gasoline Component Assessments

Fossil Fuel Markets

Platts Launches North Asia Physical Bunkers eWindow

To learn more, click here.

There was no open interest in these contracts.

Platts to Cease Assessing Clean UKC-Med 30kt

Platts Starts Coal Freight Assessments

Platts to Suspend Publication of US Lube Postings

CME Delists Oil and Natural Gas Futures

Fossil Fuel Markets

FERC to Improve Transparency in Natural Gas Market Price

Genscape and Commodity Vectors to Deliver Worldwide Marine LNG Tracking

Fossil Fuel Markets

Platts Expands Forward Curve Assessments for US Refined Products

Data Source: ICE*

Listing Cycle Expansion for CME Refined Products

Current year + 1 year

Current year + 2 years

*Graph created with ZEMA

datawatch December 2012

Agriculture, Forestry and Metal Markets

HKEx Complete Acquisition of LME

First ETFs Tracking Platinum and Silver Prices on HKEx

FIS Launches OTC Options in NOLA Urea Fertilizer Market

CME Launches Implied InterExchange KCBT-CBOT Futures Spread

CME Lists Aluminum MW U.S. Transaction Premium (Platts) Futures

ICAP Launches Global Iron Ore Desk in London and Singapore

Agriculture, Forestry and Metal Markets

Environmental Markets and Weather Services

Data Source ICE*

EEX and Hungary Signed Contract for Auctioning of EUA Phase II

EEX Launches CER Spot Market and Expands Carbix Index

*Graph created with ZEMA

datawatch December 2012

Environmental Markets and Weather Services

December 2012; December 2013-2020

Data Source EEX*