DataWatch January 2014

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MISO South, the Largest-Ever Power Grid Integration, Launched

Thomson Reuters Reveals TRust Index Fourth-Quarter Results

CFTC and Monetary Authority of Singapore Sign MOU

CAISO Releases Blueprint to Integrate EVs into California Grid

Middle Eastern and Asian Commodity Exchanges Turn Up the Volume

Introduction of new products and data sources

Delisting of products and data sources

Potential impact on data

Changes to data attributes, replacement of products

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Summary

Editor’s Letter 4

Power Markets 5

MISO South, the Largest-Ever Power Grid Integration, Launched 5

CAISO to Integrate EVs into California Grid 5

Platts to Adjust UK Annual Power Assessments 5

ERCOT’s Load Forecasting Methodology Reviewed 6

NYMEX Amends Western Electricity Futures Contracts 7

Fossil Fuel Markets 8

NGX Launches Real-Time Price Indices for Mobile Phones 8

Dalian Commodity Exchange Lists Coal and Polyethylene Contracts 8

Platts to Launch Mediterranean Premium Gasoline Swap Assessments 8

Platts to Publish Daily West African Gasoline Marker 9

Platts Adds Weekend European Gas Assessments 9

Platts Adds New Mexico OSPs for US West Coast and Europe 9

US Coal Industry to Use Argus Standard-Heat Coal Index 10

Argus to Add New Series to Coal Daily International 10

Argus to Introduce New Assessments to Freight Report and Data Feed 10

Argus Adds New Toluene Code 10

Argus Adds New Monthly Index Series to Argus Coal Daily Report 10

CME Announces Contract Specifications for New Henry Hub Combo Futures 11

NYMEX Permits Block Trading in Natural Gas Fixed Price Futures 11

NYMEX Permits Block Trading in New Henry Hub Combo Futures and Gasoline Products 11

Platts Discontinues US Midwest Finished Gasoline Assessments 11

Platts Discontinues Oso Condensate OSP 11

Platts Ceases Japanese and Korean Fuel Oil Assessments 12

Platts to Cease Assessing Middle East M2 LPG Differentials 12

Platts to Cease Assessment for NWE Avg Styrene CP 12

Argus Suspends Several NYMEX Gasoline and Gasoil Products 12

Argus Discontinues Argus Marine Fuels Codes 12

Argus Discontinues Russian NGL Index Grades Assessments 12

NYMEX Delists Gulf Coast Heating Oil Futures 13

Platts Changes Delivery Range for NWE Aromatics to 5-30 Days Forward 13

Platts Renames European Fuel Oil Swaps 13

Platts Amends USGC Naphtha Barge Assessments 14

Platts Updates Intraday UK NBP Gas Prices 14

Argus Removes Second Calendar Year for US Ethanol Series 14 CME Updates Natural Gas Futures Contracts 15

CME Lists Group Delivery Rates for January 2014 Natural Gas Contracts 15

NYMEX Amends Product Titles and Floating Price Rules for Gasoline Futures 16

NOS Clearing Updates Tanker Block Trades 17

Agriculture, Forestry and Metal Markets 18

Euronext Announces Launch of Rapeseed Derivatives Complex 18

Argus to Introduce FMB Weekly Sulphur Report and Data Feed 18

Dalian Commodity Exchange Lists Agricultural, Forestry, and Metals Contracts 18

NCDEX Launches New Gold Futures 18

NCDEX Announces Additional Gold Futures 19

CME Adds Calendar Spread Options for KC HRW Wheat Futures 19

Platts Discontinues Base Metals Formula Prices 19

Platts Removes Metals Daily Report 20

Platts Proposes Delivery Port Change for Australian Alumina 20

Platts Corrects Unit of Measurement for US Metals Symbol 20

Platts Updates Japan Bulk Alloys Price Assessments 20

Platts Revises Singapore MSFO Methodology 20

Argus to Change Timing and Description of Renewable Volume Obligation 21

CME Expands Listing of Contract Months for Corn-Wheat Products 21

CME Lists Group Delivery Dates for January 2014 Lumber, Soybean, and Metals Contracts 21

CBOT Expands Listing of Trading Months for Wheat-Corn Intercommodity Spread Options 22

NCDEX Modifies Contract Specifications for Maize-Feed/Industrial Grade Futures 22

NCDEX Modifies Contract Specifications for Wheat Futures 22

Summary


Environmental Markets and Weather Services 23

AccuWeather Announces Public Support for New Channel 23

CME Lists Delivery Dates for January 2014 Emissions Contracts 23

CME Delists EUA Futures as a Result of Union Registry Closure 23

EU Emissions Trading Scheme to Remove 300mn Allowances in 2014 24

Platts Extends RIN Year 1 Expiry Dates 24

Argus Updates European Emissions Markets Report and Data Feed 24

European HDD and CAT Weather Contract Months Expanded 24

FX, Interest Rates, Credit and Equity Indexes 27

CME Permits Block Trading on Yen-Denominated Nikkei Stock Average Futures 27

NASDAQ OMX Clears First Buy-Side Client Interest Rate Swap 27

Euronext and Invesco PowerShares Launch NYSE Century ETF 27

Eurex Offers New Index Derivatives 27

Eurex Lists New Futures and Options on ATX, ATX five, CECE EUR, and RDX EUR Indexes 28

New UBS ETF Launched on Xetra 28

New Physical Replication CSI300 ETF Launched on Xetra 28

CME Lists Delivery Dates for January 2014 Currency Contracts 29

Eurex and TASE Sign Derivatives Trading Cooperation Agreement 29

Thomson Reuters Reveals TRust Index Fourth-Quarter Results 29

Other Matters 30

CFTC and Monetary Authority of Singapore Sign MOU 30

Genscape Introduces Customizable QAP Plans and Readiness Assessments 30

The Wall Street Journal Launches WSJD Website 30

FERC and CFTC Sign MOUs on Jurisdiction and Information Sharing 30

Platts Corporate Name Changed to “McGraw Hill Financial, Inc.” 30

CME Expands Use of FIXML Regulatory Trade Block ID 30

TOCOM Announces Revisions for EFP and EFS Application Procedures 31

MCE Ltd. Advises Platts of Intent to Join Asia Mogas Paper MOC 31

MCE Ltd. Advises Platts of Intent to Join European Jet Fuel Paper, EMEA Mogas Paper, and Naphtha Paper MOC 31

EEX Acquires Majority Stake in Cleartrade Exchange 31

EEX and Cleartrade Exchange Create Combined Global Offering 31

Eurex Acquires Stake in TAIFEX 31

Monthly Market Analysis 32

Crude Oil Brent vs. WTI: Prompt-Month Contract (NYMEX) 32

Crude Oil Brent vs. WTI: Forward Curve (NYMEX) 32

North American Natural Gas Spot Prices (ICE) 33

Henry Hub Natural Gas Forward Curve (ICE) 33

Actual Weather (AccuWeather) 34

Electricity: Day-Ahead Prices (ICE) 34

News from Data Vendors 35

New Data Reports from ZEMA 35

PEGAS Volumes for December 2013 36

PEGAS: Powernext to Launch PEG TIGF/PEG Sud Spot Spread Contracts on February 4, 2014 37

Argus Launches Spot CFR East Coast India Coal Assessments 38

IIR Energy Launches New NGLs Live Service 39

Record Volume Recorded on EPEX SPOT: 31.6 TWh 41

Swiss Stakeholders and EPEX SPOT Discuss Market Coupling on Swiss Borders 42

EPEX SPOT Prepares for Internal Energy Market 42

French Minister for European Affairs Thierry Repentin Visits European Power Exchange 44

InDepth 45

Middle Eastern and Asian Commodity Exchanges Turn Up the Volume 45

While the U.S. and Canada are finding any excuse to escape prime membership in the tight global circle of cleaner and greener govern-ments, the European Union continues to aggressively fight climate change by tightening its environmental goals and targets. The EU negotiated and established its 2020 goals a while ago; since then, the world has been waiting for results from the EU’s negotiations at the next stage. The next stage was finally revealed at the 2030 Framework for Climate and Energy EU2030 conference, which took place in Brussels on January 22, 2014. Here, the European Commission revealed a new and very ambitious proposal.

After extended fighting amongst member states, the Commission’s results were announced and another landmark decision added to the annals of the world’s history. Now Europe intends to cut its GHG emissions by 40% by 2030 compared to 1990 levels, and Europe hopes to produce 27% of its energy from renewable sources by 2030.

The Commission’s discussion of renewable sources’ share in the generation portfolio induced the most debates at the conference, with the U.K. being most opposed to tightening environmental targets. However, the U.K. was finally outnumbered and overruled by the EU’s largest members, including Germany, France, and Italy. In the end, the discussion of renewables seemed to be a battle that took place largely between Germany and the U.K., with Germany winning. It is interest-ing that Germany won this debate, given that Germany is the world’s largest producer of renewable power and is on the path to replacing all German nuclear generators with wind turbines.

Needless to say, Greenpeace, Wind Energy Alliance, Alliance to Save Energy, and environmental organizations still remained unhappy and disappointed with the results of the conference, as the EU’s targets were still softer targets than what these organizations had hoped for. These organizations’ dissatisfaction was deepened by the fact that the new renewable energy goals set for the EU as a whole give each member country the ability to develop its own energy mix to meet environmental targets. This is a large deviation from the 2020 renewables targets, which were binding for each member state. Some states, like the U.K., see the EU’s flexibility about member states’ energy mixes as a great achievement—a facet of the proposal that will allow individual states to concentrate more on GHG reduction in a

way that is suitable for their interests, enabling them to focus not only on renewables, but also on nuclear, carbon capture, and storage and energy efficiency technologies.

The European Commission’s GHG emission reduction goals were agreed on without much ado. Actually, the new climate initiative gives member states more flexibility in achieving GHG goals; the new, more flexible GHG goals have added a major reform of EU ETS, Europe’s emissions trading system, and have allowed surplus carbon permits to be curbed.

Despite all that, this is the toughest climate change target of any region in the world. The EU’s targets also set a baseline for the rest of the world’s countries, who are expected to establish national emis-sions targets before the global United Nations meeting in Paris in 2015.

While Europeans went on with their analysis about whether the glass is half-full or half-empty and speculated about the impact their decisions would have on other nations, U.S. president Barack Obama delivered the State of the Union speech on January 28. His speech was very closely listened to by the energy industry and environmentalists, which is no surprise: several months ago, the U.S. president promised to take a tough stance towards fighting climate change, even threatening to exclude the deeply divided U.S. Congress from his decision-making process about climate change by taking on administrative actions.

Well, things do change. Environmental issues actually came up in the President’s speech as part of his discussion of an “all of the above” energy strategy which supports the development of all domestic energy sources, including natural gas and crude oil. The President called natural gas “the bridge fuel that can power our economy” and quoted $100 billion being invested in new factories that use natural gas.

At the same time, the President’s address posed the U.S. as a global leader in solar power generation, and promises were made to revise a tax policy that presently allocates $4 billion a year to fossil fuel industries. Other than that, not much was added to the plate–no mention was made of promised administrative actions or the upcoming global meeting in Paris. One interesting remark was made, though, that “the shift to a cleaner energy economy won’t happen overnight, and it will require tough choices along the way.” Whatever that means, it does not give the U.S. a clear vision of the government’s action plan for climate change; the address also kept renewable generation as one of the last items on the agenda. n

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Advertising & Vendor RelationshipsBruce ColquhounPhone: (604) 790-3299 Email: [email protected]

ZEMA Suite Inquiries Bruce ColquhounPhone: (604) 790-3299 Email: [email protected]

Have an idea for an article or would like to contribute to an upcoming issue?Write to us at [email protected]

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

EditorOlga GorstenkoPhone: 778-296-4183 Email: [email protected]

Olga Gorstenko

Environmental Reforms: The U.S. Takes a Backseat to Europe

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Editor’s Letter

http://www.whitehouse.gov/the-press-office/2014/01/28/president-barack-obamas-state-union-address

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MISO South, the Largest-Ever Power Grid Integration, LaunchedOn December 19, 2013, the Midwest Independent Transmission System Operator, Inc. (MISO) completed the integration of a four-state region of the electric grid across the South into MISO’s existing footprint in the Midwest. Now, MISO’s operational and market footprint extends from the Gulf of Mexico to Manitoba, Canada.

MISO’s integration added ten new transmission owning companies, six local balancing authorities, and thirty-three new market participants from Mississippi, Louisiana, Arkansas, Texas, and Missouri. This new region, referred to as MISO South, includes the following transmission owners and local balancing authorities:

• Entergy (Arkansas, Mississippi, Louisiana, Texas, Gulf States, and New Orleans)

• Cleco Corporation

• Lafayette Utilities System

• Louisiana Energy and Power Authority

• Louisiana Generating

• South Mississippi Electric Power Association

• East Texas Electric Cooperative

The launch of MISO South will enable MISO’s new southern members to receive cost savings, improved reliability, and enhanced service. In total, MISO now manages a combined footprint of over 65,280 miles of transmission with a total electric generation capacity of approximately 196,000 MW. See the original announcement.

CAISO to Integrate EVs into California GridOn December 27, 2013, the California Independent System Operator Corporation (CAISO) released a blueprint for integrating electric vehicles (EVs) into the grid. This blue-

print, entitled the Vehicle-Grid Integration Roadmap: Enabling Vehicle-based Grid Services (VGI Roadmap) outlines three inter-dependent tracks to assess how consumer use of EVs could benefit electric reliability in California. The blueprint also includes tracks to help determine the policies and technologies that will promote a more reliable, sustainable electric grid. The VGI Roadmap will help coordinate EV charging with grid conditions; it will also help provide a mechanism for EV’s to respond to the ISO’s signals. In addition, the VGI Roadmap explores the potential for VGI services to be included in clean technology developments such as demand response, energy storage, and energy efficiency.

CAISO collaborated on this project with the California Energy Commission, California Public Utilities Commission, the California Air Resources Board, the California Governor’s office, and industry stakeholders. The blue-print is a response to California Governor Jerry Brown’s executive order in 2012 to have 1.5 million zero-emis-sion vehicles (ZEVs) on California roads by 2025. See the original announcement.

Platts to Adjust UK Annual Power AssessmentsEffective March 31, 2014, Platts proposes to refo-cus its U.K. power assessments by launching daily baseload and peakload assessments of year-ahead calendar power for delivery from January 1-December 31. These new assessments will be assessed as a midpoint only and will reflect changing trading patterns in the electricity market as forward delivery periods transfer to the Gregorian calendar. Platts is also pro-posing to cease its April annual baseload and peakload assess-ments when the April 2014 annual contract expires on March 28, 2014. Questions and comments can be sent by February 21 to [email protected], cc to [email protected] the original announcement.

Power Markets


Power Markets

https://www.misoenergy.org/AboutUs/MediaCenter/PressReleases/Pages/MISOCOMPLETESLARGEST-EVERPOWERGRIDINTEGRATION.aspx

http://www.caiso.com/Documents/CaliforniaISORollsOutRoadmap-DriveBenefits-ElectricVehicles.pdf

mailto:[email protected]


http://www.platts.com/subscriber-notes-details/21987057


Power Markets

ERCOT’s Load Forecasting Methodology ReviewedOn December 17, 2013, the Electric Reliability Council of Texas (ERCOT) announced that it will review its forecasting methodology prior to releasing its next long-term outlook for resource adequacy.

One aspect of the methodology that will be reviewed is the formulas ERCOT uses to estimate future peak demand. These formulas will be amended in order to address a widening gap between economic indicators and actual growth in energy use during summer days when demand peaks. Another proposed change incudes a move to a growth forecast that is based on the number of accounts in competitive regions as opposed to economic indicators.

In addition, another methodology change proposes to shift how weather patterns are incorporated into the forecasting model in order to better reflect the diversity of weather conditions in different regions during peak demand periods. Another methodology aspect under review includes the target reserve margin, which a previous stakeholder has proposed to increase from its present rate of 13.75 percent.

ERCOT’s board has already approved changes to certain frequency regulation service requirements to reflect an increasing need for support reliability services as more wind generation is added to the system.

An independent consultant, Itron, will provide an assessment of ERCOT’s updated forecasting methodology in late January 2014. Once ERCOT receives Itron’s input, ERCOT will set a release date for the next Capacity, Demand, and Reserves (CDR) report. See the original announcement.

ZEMA User Forum MAY 27-28, 2014

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http://www.ercot.com/news/press_releases/show/26568


NYMEX Amends Western Electricity Futures ContractsOn trade date January 21, 2014, NYMEX amended the floating price and final settlement price rules for eight existing electricity contracts with Mid-Columbia and Palo Verde trading points. These eight contracts are listed for trading on CME Globex and the floor, as well as for submission for clearing through CME ClearPort.

The floating prices for each of the contracts listed below shall be equal to the final settlement price for the futures contracts reported by the Intercontinental Exchange (ICE Futures U.S.) that are listed in the table. Final settlement price revisions to the contracts listed below will be considered within ten business days following the termination of trading if ICE Futures U.S. revises the final settlement price for the futures contracts listed in the table.

The graph below was created in ZEMA using NYMEX Futures Settlement data. The graph shows the PJM average Peak/Off-Peak Electricity futures against average real time prices in the past twelve months.

See the original announcement.

Power Markets

Contract Title ChapterClearing Code

ICE Futures U.S. Futures Contract

Mid-Columbia Day-Ahead Peak Calendar- Month 5 MW Futures

935 MDC Mid-Columbia Day-Ahead Peak Fixed Price Future

Mid-Columbia Day-Ahead Peak Calendar- Day 5 MW Futures

936 MDA Mid-Columbia Day-Ahead Peak Daily Fixed Price Future

Mid-Columbia Day-Ahead Off-Peak Calendar-Month 5 MW Futures

937 OMC Mid-Columbia Day-Ahead Off-Peak Fixed Price Future

Mid-Columbia Day-Ahead Off-Peak Calendar- Day 5 MW Futures

938 MXO Mid-Columbia Day-Ahead Off-Peak Daily Fixed Price Future

Palo Verde Day-Ahead Peak Calendar- Month 5 MW Futures

939 PVD Palo Verde Day-Ahead Peak Fixed Price Future

Palo Verde Day-Ahead Peak Calendar- Day 5 MW Futures

940 VDP Palo Verde Day-Ahead Peak Daily Fixed Price Future

Palo Verde Day-Ahead Off-Peak Calendar- Month 5 MW Futures

941 OVD Palo Verde Day-Ahead Off-Peak Fixed Price Future

Palo Verde Day-Ahead Off-Peak Calendar- Day 5 MW Futures

942 QVD Palo Verde Day-Ahead Off-Peak Daily Fixed Price Future

*Graph created with ZEMA

http://www.cmegroup.com/tools-information/lookups/advisories/ser/SER-6972.html

Fossil Fuel Markets


Fossil Fuel Markets

NGX Launches Real-Time Price Indices for Mobile PhonesOn December 18, 2013, the Natural Gas Exchange Inc. (NGX) announced the launch of a new mobile-friendly webpage that displays NGX natural gas and crude oil price indices. These indices update in real time, based on trading done on the WebICE and Shorcan trading platforms. NGX’s website is accessible via https://secure.ngx.com/mobile.

All NGX contracting parties and subscribers to NGX’s premium viewing service receive complimentary access to the new service. To subscribe to NGX’s viewing services, visit their viewing services web page.

The following Canadian natural gas and crude oil price indices are available on the mobile service:

• AB-NIT Same Day Index (2A)

• AB-NIT Weekend Index

• AB-NIT Month Ahead Index (7A)

• AB-NIT Bid-Week Index

• Union Dawn Day-Ahead Index

• Union Dawn Weekend Index

• Spectra Station #2 Day-Ahead Index

• Spectra Station #2 Weekend Index

• TCPL-Emerson 2 Day-Ahead Index

• TCPL-Emerson Weekend Index

• Sweet (SW) 1A and 1B

• Synthetic (SYN) 1A and 1B

• Western Canadian Select (WCS) 1A and 1B

• Condensate (C5) 1A and 1B

• Cold Lake (CLK) 1A and 1B

• Central Alberta (CAL) 1A and 1B

• Midale (M) 1A and 1B

• Light Sweet Blend (LSB) 1A and 1B

• Sour (PSO) 1A and 1B

• Hardisty-Gibson Light (HLT) 1A and 1B

• US Sweet Clearbrook (UHC) 1A and 1B See the original announcement.

Dalian Commodity Exchange Lists Coal and Polyethylene ContractsOn January 16, 2014, the Dalian Commodity Exchange (DCE) listed trading on its coke 1501 contract, coking coal 1501 contract, LLDPE 1501 contract, and PVC 1411 contract.

Benchmark listing prices for these contracts are included below:


Platts to Launch Mediterranean Premium Gasoline Swap AssessmentsEffective March 3, 2014, Platts is proposing to launch FOB Mediterranean premium unleaded 10ppm gasoline swap assessments reflecting balance-month, front-month, and second-month swap values in dollars per metric ton. The proposal comes after a period of increased liquidity in 2013. Assessments, which will be published in PFC Europe, will appear as outright values and as a differential to the Eurobob Gasoline FOB ARA Barge swap assessments for the same months. Comments can be sent to [email protected], cc [email protected] by February 3. See the original announcement.

Contract Name Benchmark Listing Price

A1507 Contract RMB 4,183/ton

B1501 Contract RMB 4,004/ton

C1501 Contract RMB 2,372/ton

J1501 Contract RMB 1,446/ton

JM1501 Contract RMB 1,029/ton

L1501 Contract RMB 10,525/ton

M1501 Contract RMB 3,159/ton

P1501 Contract RMB 5,906/ton

V1501 Contract RMB 6,495/ton

Y1501 Contract RMB 6,714/ton

I1501 Contract RMB 857/ton

JD1501 Contract RMB 4,192/500 kg

FB1501 Contract RMB 68.20/piece

BB1501 Contract RMB 124.90/piece

https://secure.ngx.com/mobile

http://www.ngx.com/?page_id=82

http://www.ngx.com/pdf/NGX%20Mobile%20Index%20Announcement.pdf

http://www.dce.com.cn/portal/info?cid=1261730309136&iid=1389865169100&type=CMS.NEWS




Platts Adds New Mexico OSPs for US West Coast and EuropeOn January 21, 2014, Platts began publishing two new monthly official selling prices (OSPs). These OSPs are for Pemex’s Isthmus crude loading from Mexico to the U.S. West Coast and for Pemex’s Olmeca crude loading from Mexico to Europe.

These OSPs will appear on pages 1063 and 1064 of Platts Global Alert and in Platts Latin America Wire.

New OSPs include the following:



Fossil Fuel Markets

Platts to Publish Daily West African Gasoline MarkerEffective from May 1, 2014, Platts proposes to begin publishing a daily marker for gasoline delivered into West Africa, calcu-lated as a freight net-forward from Platts Premium gasoline 10 ppm gasoline FOB Rotterdam barge assessment (PGABM00). The new daily marker will be titled “West African gasoline marker.”

Platts’s West African gasoline marker will be based on four Worldscale flat rates: Amsterdam-Lome, Rotterdam-Lome, Amsterdam-Lagos, and Rotterdam-Lagos. The West African gasoline marker will be calculated by multiplying the Worldscale flat rate by Platts’s daily tanker rate assessment for UKC-West Africa 37,000 mt cargoes (PFAMH00), then by adding the resulting figure to Platts’s PGABM00 assessment. The 2014 Worldscale flat rate that will be used to calculate the new forward formula is $18.74/mt.See the original announcement.

Platts Adds Weekend European Gas Assessments Platts proposes to launch weekend-ahead gas price assessments on February 28, 2014 for Germany’s GASPOOL and NCG markets, France’s PEG Nord and Sud, Italy’s PSV, and the Austrian CEGH VTP hub.

Weekend prices for these markets will be assessed and published on Fridays, or on the last working day of the week in the event of a U.K. bank holiday on Friday. Prices will be published in European Gas Daily or European Power Alert; they will also be available as market data. See the original announcement.

MDC Symbol Bates Dec Frequency Currency UOM Description Location

OS AAXKJ00 u 2 DW USD BBL Isthmus Posting (USWC) PGA 1063

OS AAXJW00 u 2 MA USD BBL Isthmus OSP (Mexico to USWC) PGA 1064

OS AAXLY00 u 2 MA USD BBL Isthmus Constant (USWC) PGA 1063/1064

OS AAXLZ00 u 2 DW USD BBL Isthmus Formula (USWC) PGA 1063

OS AAXLZ03 u 2 MA USD BBL Isthmus Formula (USWC) MAvg PGA 1063

OS AAXNC00 u 2 DW USD BBL Olmeca Posting (Europe) PGA 1063

OS AAXJX00 u 2 MA USD BBL Olmeca OSP (Mexico to Europe) PGA 1064

OS AAXJX00 u 2 MA USD BBL Olmeca OSP (Mexico to Europe) PGA 1064

OS AAXND00 u 2 MA USD BBL Olmeca Constant (Europe) PGA 1063/1064

OS AAXNE00 u 2 DW USD BBL Olmeca Formula (Europe) PGA 1063

OS AAXNE03 u 2 MA USD BBL Olmeca Formula (Europe) MAvg PGA 1063




US Coal Industry to Use Argus Standard-Heat Coal IndexAs of January 2014, the US coal industry will begin using Argus standard-heat rail coal index. Trading will use Argus coal price assessments to settle the new coal product which is a standardized 12,000 Btu CSX-originated coal forward contract. See the original announcement.

Argus to Add New Series to Coal Daily InternationalOn January 3, 2014, Argus will add a new series to the Argus Coal Daily International publication and data module. New codes are price type 8 and have a time stamp of 6. New code details will appear in the DCI module in the DATA/DCOAL folder of server ftp.argusmedia.com.


Argus to Introduce New Assessments to Freight Report and Data FeedEffective January 3, 2014, Argus will introduce new assessments to their Freight report and data feed. New data codes are price types 1, 2, and 8 and have a time stamp of 0.


Argus Adds New Toluene CodeOn January 10, 2014, Argus added the following code to the Argus Dewitt Toluene, Xylenes, and Isomers report. This code is located in the dtxweekly data file in the DATA/DTXWeekly folder of server ftp.argusmedia.com.


Argus Adds New Monthly Index Series to Argus Coal Daily ReportOn January 24, 2014, Argus introduced several new monthly index series to the Argus Coal Daily publication and data module. The series listed below will appear in the USCoal module in the DATA/DCDR folder of server ftp.argusmedia.com.



Fossil Fuel Markets

PA-Code Description

PA0013229 Coal India 4200 GAR cfr within 90 days

PA0013230 Coal India 5000 GAR cfr within 90 days

PA0013231 Coal India 5500 NAR cfr within 90 days

PA-Code Description

PA0013248 Dry sulphur Black Sea - Brazil 30-35k

PA0013249 Dry sulphur Baltic - North Africa 30-35k

PA-CodeTime Stamp

Price Type

Continuous Forward

Description

PA0012019 0 8 0 Toluene blend value USGC

PA-CodeTime Stamp

Price Type

Continuous Forward

Description

PA0013283 21 4 1 Central Appa-lachia Nymex Spec OTC index month

PA0013284 21 4 1 Central Appa-lachia Nymex Spec OTC index quarter

PA0013285 21 4 1 CSX <1% SO2 12000 OTC index month

PA0013286 21 4 1 CSX <1% SO2 12000 OTC index quarter

PA0013287 21 4 1 CSX <1% SO2 12500 OTC index month

PA0013288 21 4 1 CSX <1% SO2 12500 OTC index quarter

PA0013289 21 4 1 Powder River Basin 0.8 8800 OTC index month

PA0013290 21 4 1 Powder River Basin 0.8 8800 CTC index quarter

PA0013291 21 4 1 Powder River Basin 0.8 8400 OTC index month

PA0013292 21 4 1 Powder River Basin 0.8 8400 OTC index quarter

http://www.argusmedia.com/About-Argus/Press-Releases/2013/US-Standard-Heat-Coal-Index

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140103cdi.pdf

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140103fre.pdf

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140103fre.pdf

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140110txweekly.pdf

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140124cdr.pdf

CME Announces Contract Specifications for New Henry Hub Combo FuturesOn January 13, 2014, CME announced the following contract specifications for new Henry Hub Combo futures:

The graph below was created in ZEMA using CME Futures Settlement data. The graph shows average daily Henry Hub Swap futures (CME Code: NN) from March 2013 to January 30, 2014.

For further details, see the original announcement.

NYMEX Permits Block Trading in Natural Gas Fixed Price FuturesOn trade date January 6, 2014, the New York Mercantile Exchange (NYMEX) began to permit block trading in the financially settled natural gas fixed price futures contracts from the locations listed below. These products have a block trade minimum threshold of 25 contracts.

• Chicago Natural Gas (Platts IFERC)

• PG&E Citygate Natural Gas (Platts IFERC)

• CIG Rockies Natural Gas (Platts IFERC)

• Algonquin Natural Gas (Platts IFERC)

• Florida Gas Zone 3 Natural Gas (Platts IFERC)

• Florida Gas Zone 2 Natural Gas (Platts IFERC)

• NGPL TexOk Natural Gas (Platts IFERC)

• OneOk, Oklahoma Natural Gas (Platts IFERC)

• Southern Natural Louisiana Natural Gas (Platts IFERC)

• Trunkline Louisiana Natural Gas (Platts IFERC) See the original announcement.

NYMEX Permits Block Trading in New Henry Hub Combo Futures and Gasoline ProductsOn trade date January 13, 2014, NYMEX began to permit block trading in the following new products:


Platts Discontinues US Midwest Finished Gasoline AssessmentsEffective from January 1, 2014, Platts discontinued its assessments for conventional 87 octane finished gasoline (N grade) in the Midwest/Group 3 market. These assessments were published under the symbol PGA S00 and appeared on page 330 of Platts Global Alert.See the original announcement.

Platts Discontinues Oso Condensate OSPEffective from January 2014, Platts will discontinue the code for the official selling price (OSP) of the Nigerian grade Oso Condensate, which is issued by the Nigerian National Petroleum Corporation (NNPC) on a monthly basis. Platts has done so because the NNPC ceased publishing OSPs for Oso Condensate in February 2012 as a response to falling production levels.

OSPs for Oso Condensate were published under code AAIQM00 on page 1065 of Platts Global Alert.See the original announcement.


Fossil Fuel Markets

NameClearing/Floor Code

Product Size

Series Listing Convention

Block Eligible/Minimum Block Quantity

Henry Hub Combo Futures

HBI 2,500 MMBtu

Globex: 36 Months

CPC & NXPIT: 36 Months

Yes/25

Product TitleBlock Trade Minimum Threshold

Gasoline Euro-bob Oxy NEW Barges (Argus) Crack Spread Average Price options

10 contracts

RBOB Gasoline Brent Crack Spread Average Price options

10 contracts

PJM Western Hub Real-Time Off-Peak Calendar-Month 50 MW Option on Calendar Futures Strip

1 contracts

Henry Hub Combo futures 25 contracts


http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/NPadv13-48.html

http://www.cmegroup.com/tools-information/lookups/advisories/market-regulation/NYMEX_COMEX_RA1326-4.html

http://www.cmegroup.com/tools-information/lookups/advisories/market-regulation/NYMEX_COMEX_RA1327-4.html



Platts Ceases Japanese and Korean Fuel Oil AssessmentsEffective from April 1, 2014, Platts will discontinue its FOB Korea and FOB Okinawa 1.5% 180 CST fuel oil assessments, as well as its FOB Okinawa 3.5% 180 CST fuel oil assessments. Platts will do so in order to reflect the fact that these grades are no longer typically sold from these locations.

Discontinued assessments are currently published in Platts Global Alert and Platts Asia Pacific Arab Gulf Marketscan, as well as in the Platts price assessment database. See the original announcement.

Platts to Cease Assessing Middle East M2 LPG DifferentialsEffective June 1, 2014, Platts is proposing to cease its assessments of physical market premiums for refrigerated propane and butane cargoes loading in the Middle East LPG market in the second month-ahead; Platts will do so in response to changing market conditions in the Persian Gulf. Platts currently publishes these assessments under symbols AALAM00 (refrigerated propane M2 cash differential) and AALAN00 (refrigerated butane M2 cash differential) on Platts Global Alert, LP Gaswire, and in the Platts price assessment database. Comments can be sent to [email protected] by March 30, 2014.See the original announcement.

Platts to Cease Assessment for NWE Avg Styrene CPEffective June 2, 2014, Platts is proposes to cease assessing the average contract price for Northwest European (NWE) styrene. Since January 1, 2014, Platts no longer assesses the FD Northwest Europe and FOB Rotterdam styrene contract price, however, FOB ARA styrene barge contract prices will continue to be published by Platts and can be found in

Petrochemical Alert on page 376 and in the Europe and Americas Petrochemical report. Comments can be sent to [email protected], cc [email protected] the original announcement.

Argus Suspends Several NYMEX Gasoline and Gasoil Products On January 3, 2014, Argus suspended several codes until further notice. These codes will stop being distributed in the DHP data modules in folder DUSPR of server ftp.argusmedia.com.


Argus Discontinues Argus Marine Fuels CodesOn January 2, 2014, Argus discontinued several codes in Argus Marine Fuels. Affected data is located in the DATA/DAMarineF folder of server ftp.argusmedia.com.

Discontinued codes include the following:


Argus Discontinues Russian NGL Index Grades AssessmentsOn January 17, 2014, Argus discontinued several Russian NGL index grades assessments. Affected date is located in the DRLPG files in the DRLPG folder of server ftp.argusmedia.com.


Fossil Fuel Markets

PA-Code Time Stamp

Price Type

Continuous Forward Description

PA0011566 2 1 0 Fuel oil bunker LS 380 cst Halifax

PA0011566 2 2 0 Fuel oil bunker LS 380 cst Halifax

PA-Code Description Differential Basis

PA0003914 Gasoline 876 conv N Group 3

Nymex Gasoline RBOB

PA0003917 Gasoline 87 conv N Group 3 any month

Nymex Gasoline RBOB

PA0004089 Diesel 61 10ppm (ULS) Colonial pipeline cycle

Nymex Heating Oil

PA0004434 Diesel 61 10ppm (ULS) Colonial pipeline wtd avg cycle

Nymex Heating Oil







http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140103usp.pdf

ftp://ftp.argusmedia.com

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140102amarine.pdf

Affected assessments have price types of 1 and 2 and are listed below:

• PA0006603: Argus Russian NGL index grade A

• PA0006604: Argus Russian NGL index grade BSee the original announcement.

NYMEX Delists Gulf Coast Heating Oil FuturesOn January 20, 2014, the New York Mercantile Exchange (NYMEX) delisted the products listed below from CME ClearPort and the NYMEX trading floor as a result of a lack of customer interest in these products.

There was no open interest in these contracts. Product rule chapters, terms, and conditions contained in the position limit, position accountability, and reportable level table located in the “Interpretations and Special Notices” section of chapter 5 of the NYMEX Rulebook have been removed.


Platts Changes Delivery Range for NWE Aromatics to 5-30 Days ForwardOn January 2, 2013, Platts changed the delivery range for European benzene, toluene, mixed xylenes, paraxylene, orthoxylene, styrene, and methanol to 5-30 days. Affected assessments appear in Europe and Americas Petrochemical Scan, Platts Petrochemical Alert, and in the Platts market price database.

Postings that will be affected include the following:


Platts Renames European Fuel Oil SwapsOn January 8, 2014, Platts renamed several assess-ments for FOB ARA fuel oil 3.5% barge swaps, FOB ARA fuel oil 1% barge swaps, and related deriva-tives assessments. These assessments have been renamed to reflect Rotterdam as the basis location for the Platts physical high sulfur fuel oil barge assessments that underpin derivatives used to create assessments.

Related swap assessments are published on Platts Forward Curve Europe, an add-on information service to Platts Global Alert. A table of pages containing FOB ARA fuel oil swaps assessments is included below:



Fossil Fuel Markets

Symbol Posted Price

AAOAX00 Benzene CIF ARA

PHAAJ00 Benzene FOB ARA

AASFD00 TDI toluene FOB ARA

PHAFW00 T2 nitration toluene FOB ARA

AAOQP00 Styrene FOB ARA

AAILD00 Paraxylene FOB ARA

PHABD00 Virgin xylene FOB ARA

PHAAW00 Solvent xylene FOB ARA

PHABK00 Orthoxylene FOB ARA

HPACQ10 Methanol FOB Rotterdam

Page Content

1684 Platts Fuel Oil 1% FOB ARA Barge and Brent Crack Swaps

1687 Platts Fuel Oil 3.5% ARA/Med Diff Swaps

1680 Platts Fuel Oil 3.5% FOB ARA Barge and Brent Crack Swaps

Product NameProduct Code

NYMEX Rulebook Chapter Number

Gulf Coast Heating Oil (OPIS) Futures

7O 255

Gulf Coast Heating Oil (OPIS) vs. NY Harbor ULSD Futures

7W 256

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140117lpgr.pdf





Fossil Fuel Markets

Platts Amends USGC Naphtha Barge AssessmentsFollowing a review of its U.S. Gulf Coast naphtha barge assessments, Platts confirmed on January 10, 2014 that it is committed to using the waterborne U.S. Gulf Coast conventional gasoline (M grade) assessment as the basis to determine its U.S. Gulf Coast naphtha barge assessments. See the original announcement.

Platts Updates Intraday UK NBP Gas PricesOn January 28, 2014, Platts moved the timestamp of its intraday U.K. NBP gas assessments to 11:00 a.m. London time. This change—reflective of market coupling arrangements in North West European power markets—applies to within-day and day-ahead intraday assessments currently published at 09:30 GMT

The codes listed below will have an updated timestamp; they are published on page 670 of European Power Alert and in Platts Market Data in dispatch category EG.

• GNWDV00

• GNDAV00

On May 1, 2014, Platts also proposes to discontinue its 12:00 p.m. London midday assessment of U.K. NBP day-ahead gas, replacing it with the intraday assessment for day-ahead that has a timestamp of 11:00 a.m. London time.

The code listed below will have an updated timestamp; it is published on page 611 of European Power Alert and in Platts Market Data in dispatch category EG.

• GNCMV00See the original announcement.

Argus Removes Second Calendar Year for US Ethanol Series On January 3, 2014, Argus added a second year for biodiesel, ethanol, and cellulosic RIN calendar year series. After industry feedback, Argus announced on January 10, 2014 that they will reverse these changes to the following RIN series. The codes listed below will revert to their original names:

These changes apply to the DHP and DHPS data files in the DUSPR folders and DUSB files in the DUSEthanol folder of server ftp.argusmedia.com.

Argus will also remove the second continuous forward value previously added to these series. As a result, the series listed below will be terminated.See the original announcement.

PA-Code2 to 9 January Description

Old Description

PA0010069 Ethanol RIN calendar year

Ethanol RIN current year

PA0010070 Biodiesel RIN calendar year

Biodiesel RIN current year

PA0010071 Cellulosic RIN calendar year

Cellulosic RIN current year

PA0010072 Advanced Biofuels RIN calendar year

Advanced Biofuels RIN current year

PA-CodeTime Stamp

Price Type

Con-tinuous Forward

Description

PA0010069 2 1 1 Ethanol RIN calendar year

PA0010069 2 2 1 Ethanol RIN calendar year

PA0010070 2 1 1 Biodiesel RIN calendar year

PA0010070 2 2 1 Biodiesel RIN calendar year

PA0010071 2 1 1 Cellulosic RIN calendar year

PA0010071 2 2 1 Cellulosic RIN calendar year

PA0010072 2 1 1 Advanced Biofuels RIN calendar year

PA0010072 2 2 1 Advanced Biofuels RIN calendar year

Data. Analytics.Integration.ZEMA is a complete end-to-end enterprise data management system. Designed for energy and commodities markets, ZEMA replaces fragmented data collection and analysis processes with a sophisticated, unified, and automated data management system that integrates with both internal and external systems.



http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140110usp.pdfhttp:/web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140103use.pdf


Fossil Fuel Markets

CME Updates Natural Gas Futures ContractsEffective on January 6, 2014, CME Group updated the contract names, rule chapters, commodity codes, spot month aggregation locations, and accountability levels for several natural gas futures and options contracts, including natural gas basis futures, fixed price futures, index futures, pipe options, and basis options.

Affected futures and options contracts have the following locations:

• Algonquin City-Gates

• Chicago

• CIG Rockies

• Florida Gas Zone 2

• Florida Gas Zone 3

• NGPL TexOk

• OneOk, Oklahoma

• PG&E Citygate

• Southern Natural Louisiana

• Trunkline Louisiana

To view a full list of affected contracts, see the original announcement.

Products First Position (Optional) First Intent First Delivery Last Trade Last Intent Last Delivery

Ethanol (EH) Dec 30 (Dec 26) Dec 30 Jan 2 Jan 6 Jan 7 Jan 8

ProductsLast Trade

Allocation of Deliveries

Notice Day

First Delivery

Last Delivery

REBCO (RE) Dec 12 Dec 13 Dec 16 Jan 1 Jan 31

Light Sweet Crude Oil (CL)/Gulf Coast Sour Crude Oil (MB) Dec 19 Dec 20 Dec 23 Jan 1 Jan 31

Western Canadian Select (WCS) Crude Oil (WCE) Dec 20 Dec 20 Dec 20 Jan 1 Jan 31

Coal (QL) Dec 26 Dec 27 Dec 27 Jan 1 Jan 31

Natural Gas (NG)/Henry Hub Natural Gas Last Day Physically-Delivered (MNG)

Dec 27 Dec 30 Dec 10 Jan 1 Jan 31

Heating Oil (HO)/RBOB Gasoline (RB) Dec 31 Jan 2 Jan 3 Jan 9 Jan 30

Polypropylene (P1)/Polyethylene (P6) Dec 31 Jan 2 Jan 3 Jan 7 Jan 21

Conway Physical Propane In-Well (OPIS) (CPP) Jan 30 Jan 30 Jan 31 Jan 31 Jan 31

Mont Belvieu: Iso-Butane (3L)/Normal Butane (3M)/LDH Propane (3N)/Non-LDH Propane (3P)/Ethane (3Q)/Natural Gasoline (3R)/Spot Ethylene In-Well (MBE)

Jan 30 Jan 30 Jan 30 Jan 31 Jan 31

CME Lists Group Delivery Rates for January 2014 Natural Gas ContractsOn December 30, 2013, CME listed the following relevant delivery dates for January 2014 CBOT, NYMEX, and DME natural gas contracts:

CBOT

NYMEX: January Energy Contracts

http://www.cmegroup.com/tools-information/lookups/advisories/market-regulation/SER-6988.html


Fossil Fuel Markets

NYMEX: February Energy Contracts that Allocate in January

DME


NYMEX Amends Product Titles and Floating Price Rules for Gasoline FuturesEffective on January 31, 2014 and beginning with the January 2014 contract month, NYMEX will amend product titles and floating price rules for Group Three Unleaded Gasoline (Platts) futures (commodity code A9) and Group Three Unleaded Gasoline (Platts) vs. RBOB futures (commodity code A8). CME is implementing these amendments as a result of a phase-out of the existing grade of unleaded gasoline, which is being replaced by a “sub-octane” gasoline grade that specifies the addition of a 10% blend of ethanol.

The following product titles will be updated:

Chapter Old Product Title New Product Title

322 Group Three Unleaded Gasoline (Platts) Futures Group Three Sub-octane Gasoline (Platts) Futures

323 Group Three Unleaded Gasoline (Platts) vs. RBOB Gasoline Futures

Group Three Sub-octane Gasoline (Platts) vs. RBOB Gasoline Futures

Products Last TradeAllocation of Deliveries

Notice Day First Delivery Last Delivery

REBCO (RE) Jan 14 Jan 15 Jan 16 Feb 1 Feb 28

Light Sweet Crude Oil (CL)/Gulf Coast Sour Crude Oil (MB) Jan 21 Jan 22 Jan 23 Feb 1 Feb 28

Western Canadian Select (WCS) Crude Oil (WCE) Jan 17 Jan 17 Jan 17 Feb 1 Feb 28

Coal (QL) Jan 28 Jan 29 Jan 29 Feb 1 Feb 28

Natural Gas (NG)/Henry Hub Natural Gas Last Day Physically-Delivered (MNG)

Jan 20 Jan 30 Jan 30 Feb 1 Feb 28



Oman Crude Oil (OQ) January Nov 29 Dec 2 Dec 3 Jan 1 Jan 31

Oman Crude Oil (OQ) (Feb) Dec 31 Jan 2 Jan 3 Feb 1 Feb 28

http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv13-583.pdf


The calculation for the floating prices of these products will be updated as follows:


NOS Clearing Updates Tanker Block TradesFrom February 3, 2014 onwards, all tanker block trades will be reported hourly on NOS Clearing’s website in order to enhance post-trade transparency. A list of tanker block trades will be available under the “Freight Daily Volume and Open Interest” section of the website.

In addition, trade affirmation will no longer apply for NOS block trades, as block transactions are reported to the exchange by pre-appointed block broker members.


Fossil Fuel Markets

Chapter New Product Title Old Floating Price New Floating Price

322.02 Group Three Sub-octane Gasoline (Platts) Futures

Equal to the arithmetic average of the Platts Group Three Unleaded gasoline mean for each business day that the floating price is determined during the contract month.

Equal to the arithmetic average of the Platts Group Three Sub-octane gasoline mean for each business day that the floating price is determined during the contract month.

323.02 Group Three Sub-octane Gasoline (Platts) vs. RBOB Gasoline Futures

Equal to the arithmetic average of Platts Group Three Unleaded Gasoline mean minus the NYMEX RBOB Gasoline Futures first nearby contract month settlement price for each business day that both prices are determined during the contract month. For purposes of determining the floating price, the Platts Group Three Unleaded Gasoline mean will be rounded each day to the nearest thousandth of a cent.

Equal to the arithmetic average of Platts Group Three Sub-octane Gasoline mean minus the NYMEX RBOB Gasoline Futures first nearby contract month settlement price for each business day that both prices are determined during the contract month. For purposes of determining the floating price, the Platts Group Three Sub-octane Gasoline mean will be rounded each day to the nearest thousandth of a cent.


http://www.nosclearing.com/freight-and-oil-products-news/nos-block-trades-update-article1989-582.html

Euronext Announces Launch of Rapeseed Derivatives ComplexOn January 22, 2014, Euronext announced the launch of a combined rapeseed derivatives complex that will become active by the end of 2014. The derivatives complex will offer in-dustry participants both rapeseed meal and rapeseed oil futures and options in individual contracts. The launch will also expand Euronext’s commodities offerings to cover the bio-diesel sector.

The launch of the new rapeseed derivatives complex will complement Euronext’s existing rapeseed futures and options contracts. In the past five years, Euronext’s rapeseed futures contract has grown by 67 percent. In 2013, the contract traded 93 million tonnes of rapeseed. The contract is used as a risk mitigation tool by many industry participants. See the original announcement.

Argus to Introduce FMB Weekly Sulphur Report and Data FeedEffective January 2, 2014, Argus will introduce new assessments to their FMB Weekly Sulphur report and data feed. New data codes are price types 1, 2, and 8 and have a time stamp of 0.


Dalian Commodity Exchange Lists Agricultural, Forestry, and Metals ContractsOn January 16, 2014, the Dalian Commodity Exchange (DCE) listed trading on its No. 1 soybeans 1507 contract, No. 2 soybeans 1501 contract, corn 1501 contract, soybean meal 1501 contract, RBD palm olein 1501 contract, soybean oil 1501 contract, and egg 1501 contract. It also listed trading on its iron ore 1501 contract, fiberboard 1501 contract, and blockboard 1501 contract.

Benchmark listing prices for these contracts are included below:


NCDEX Launches New Gold FuturesOn January 20, 2014, the National Commodity & Derivatives Exchange Limited (NCDEX) announced the launch of new futures contracts in gold. These contracts have a ticker symbol of GOLDH100; they are available for trading from January 21, 2014 and expire in the months of March, May, and July 2014. New gold contracts are available for settlement exclusively through COMTRACK®.

For detailed contract specifications, including the basis, quotation/base value, tick size, quality specification, delivery center, trading hours, due date/expiry date, delivery specification, closing of contracts, final settlement price calculation methodology, additional margin, and delivery logic.


Agriculture, Forestry and Metal Markets

PA-Code Description

PA0013248 Dry sulphur Black Sea - Brazil 30-35k

PA0013249 Dry sulphur Baltic - North Africa 30-35k

Contract Name Benchmark Listing Price

A1507 Contract RMB 4,183/ton

B1501 Contract RMB 4,004/ton

C1501 Contract RMB 2,372/ton

J1501 Contract RMB 1,446/ton

JM1501 Contract RMB 1,029/ton

L1501 Contract RMB 10,525/ton

M1501 Contract RMB 3,159/ton

P1501 Contract RMB 5,906/ton

V1501 Contract RMB 6,495/ton

Y1501 Contract RMB 6,714/ton

I1501 Contract RMB 857/ton

JD1501 Contract RMB 4,192/500 kg

FB1501 Contract RMB 68.20/piece

BB1501 Contract RMB 124.90/piece

http://www.nyse.com/press/1389612069772.html

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140102sulphur.pdf

http://www.dce.com.cn/portal/info?cid=1261730309136&iid=1389865169100&type=CMS.NEWS



The graph below shows the high, low, and settle prices of CME COMEX 100 Gold futures as of January 24, 2014. This graph was created in ZEMA using CME Comex Futures Settlement data.

see the original announcement.

NCDEX Announces Additional Gold FuturesOn trade date January 15, 2014, the NCDEX announced the launch of new futures contracts in gold. These contracts have a ticker symbol of GOLDHEDGE; they expire in March, May, and July 2014.

For detailed contract specifications, including trading hours, due date/expiry date, price limit, final settlement price, and minimum initial margin,

see the original announcement.

CME Adds Calendar Spread Options for KC HRW Wheat FuturesOn January 27, 2014, the Chicago Mercantile Exchange (CME) will add calendar spread options (CSOs) to their current lineup of options on KC HRW Wheat futures.

CSOs are options on the price differentials between two con-tract months, rather than on the underlying asset itself. CSOs can provide a more precise hedge against adverse movements in price spreads in the KC HRW Wheat market, particularly spreads between old and new crop months.

New KC HRW Wheat CSOs will be listed on the following spreads:

• Nearby five consecutive futures calendar spreads

• Nearest March-July futures spread

• Nearest July-December futures spread

• Nearest December-July futures spread

• Nearest July-July (1 year) futures spread

• Nearest December-December (1 year) futures spread

For consecutive combinations, when the first combination expires, a new combination will be listed on the following business day. For each non-consecutive combination, when the combination for the current cycle expires, the same combination for the next cycle will be listed on the following business day.

New KC HRW Wheat CSOs will have the same contract specifications as existing CBOT SRW Wheat CSOs. These include the following:

• European-style exercise

• Strike price ranges

• Strike price increments

• Minimum premium increments

• Price limits

• Position limits

• Trading hours

• Venues

• Last trade date

• Daily and final settlementSee the original announcement.

Platts Discontinues Base Metals Formula PricesOn January 2, 2014, Platts discontinued several U.S. formula prices for base metals, since market feedback indicated that these formula prices were no longer relevant to current business. These published price indicators involved calculations on exchange prices or calculations on producer list prices that failed to update very frequently.

Discontinued prices are as follows:

• Copper: Daily MW Atlantic Seaboard, Daily MW CIF Europe, Daily MW Composite, Daily MW Producer Cathode, Daily MW Producer Refined, and Weekly Producer Cathodes. Platts will continue to publish daily COMEX and London Metal Exchange (LME) copper futures prices and weekly U.S. and European premiums to COMEX and LME prices.

• Lead: Daily MW NA Producer and Daily Secondary Producer. Platts will continue to publish its daily North American Market price, which reflects the LME lead cash price plus the Platts weekly premium for 99.7% lead, as well as Platts’s weekly used lead-acid battery assessment.

• Nickel: Daily MW LME Mean.

• Tin: Daily Composite and Daily MW NY low-lead. Platts will continue to publish its twice-weekly NY Dealer assessment, which reflects LME cash plus the assessed premium.

http://ncdex.com/Downloads/Circulars/PDF/Launch_Futures_Contract_Gold_20012014.pdf

http://ncdex.com/Downloads/Circulars/PDF/Launch_Futures_Contract_Gold_GOLDHEDGE_11012014.pdf




• Zinc: Daily MW Four Corners. Platts will continue to publish its weekly premiums for SHG zinc and alloy No. 3, as well as its daily and weekly SHG, galvanizer, and No. 3 prices that reflect LME plus the premium.


Platts Removes Metals Daily ReportAs of January 27, 2014, readers of Platts’s Metals Daily publication will only be able to access this publication through Platts’s Market Center, as the Metals Daily report has been removed from Platts.com.

In addition, Market Data Metals customers can no longer access LME data on Platts.com, including the MM, LM, MX, and ML categories. This data is now only available on Platts’s Market Center through the Market Data Snapshot tool. See the original announcement.

Platts Proposes Delivery Port Change for Australian AluminaEffective April 1, 2014, Platts is proposing to change the delivery port for the daily Australia to China alumina freight assessment from Qingdao to Lianyungang. In terms of annualized tons, Lianyungang is the largest alumina receiving port in China. All other contract specifications will remain the same. See the original announcement.

Platts Corrects Unit of Measurement for US Metals Symbol On January 7, 2014, Platts corrected the unit of measurement (UOM) for the symbol below from kilogram (KG) to pound (LB).

• FA MMAFQ03 c4 MA USD LB Ferromolybdenum US Mo AvgSee the original announcement.

Platts Updates Japan Bulk Alloys Price AssessmentsOn February 20, 2014, Platts will update its specifi-cations and methodologies for two CIF Japan bulk alloys price assessments. Platts will update these assessments as a result of changes in market trading patterns in recent years. The assessments have specified Chinese-origin material, but will be updated to reflect the emergence of new producers outside of China. These assessments have also been updated because Chinese imports of silicomanganese have ceased.

Assessment modifications include the following:

• Ferrosilicon 75% CIF Japan (MMAJP00): Weekly assessment of the repeatable, tradable spot price ferrosilicon imported

into Japan, with 75-79% silicon, normalized to 75% Si, maximum 2% aluminum, 0.02% sulfur, 0.2% carbon, 0.05% phosphorous, lumps 10-100 mm, packed in 1 mt big bags in seagoing 20-foot (18-24-mt) containers, CIF main port Japan. Assessed in dollars per metric ton, reflecting the narrow range where the majority of business is occurring. Payment cash against documents or LC at site, loading less than 60 days after the date of transaction. Minimum volume 100 mt per transaction. Assessment made Thursdays or closest business day from survey of producers, traders and end-users in the steel and other metal sectors.

• Silicomanganese 65% CIF Japan (MMAJG00): Weekly assessment of the repeatable, tradable, spot price for 65-70% Mn, normalized to 65% Mn; silicon 14-20%, carbon maximum 2-2.5%, phosphorous maximum 0.3%, sulfur maximum 0.02%, boron maximum 0.02%, lump size 10-55 mm, in bulk or super sacks, all origins. Price is assessed in $/mt Mn contained, reflecting the narrow price range where the majority of business is occurring, basis CIF main Japanese ports of Yokohama, Nagoya and Osaka, load-ing within 60 days from the date of transaction, net 30-days payment terms from date of delivery. The assessment will reflect minimum quantities of 100 mt or greater. Assess-ment made Thursdays or closest business day from survey of producers, traders and end-users in the steel sector.


Platts Revises Singapore MSFO MethodologyEffective January 2, 2014, Platts revised its methodology for assessing FOB Singapore 180 CST 2% sulfur cargoes by applying a standard quality premium to its benchmark FOB Singapore HSFO 180 CST 3.5% sulfur assess-ment. Very low levels of liquidity in the medium sulfur market prompted Platts to make the change. The premium, which is calculated as 2.25% of the base value of FOB Singapore HSFO 180 CST 3.5%, is a reflection of relative premiums for medium sulfur fuel over the past two years. Comments and feedback can be sent to [email protected] the original announcement.








Argus to Change Timing and Description of Renewable Volume ObligationOn January 2, 2014, Argus will change the timing and the description of its renewable volume obligation. To accommodate both first and second year volume obligations, the timing will change from “prompt” to “year.” The description will also change from “Argus Renewable Volume Obligation” to “Argus Renewable Volume Obligation year.” Existing PA0012358 data will be updated to carry forward periods (year value).

Altered data is located in the DUSB data module in the DUSEthanol folder of server ftp.argusmedia.com. Affected data has a price type of 8, a time stamp of 2, and a continuous forward range of 1.


CME Expands Listing of Contract Months for Corn-Wheat ProductsOn trade date January 27, 2014, the Chicago Mercantile Exchange (CME) will expand its listing of contract months for the products listed below. These products are available on CME Globex and on the trading floor.




Code Clearing/Globex

TitleCurrent Listing Schedule

New Listing Schedule (as of 1/26/2014)

XCW/ZCW

CORN-WHEATH IN-TER CALNDR SPRD OPTION

4 months of Jul, Dec

10 months of March, May, July, Sep, and Dec

QCW CORN-WHEAT SNYTHETIC COMBO

4 months of Jul, Dec

10 months of March, May, July, Sep, and Dec

ProductsFirst Holding

First Intent

First Delivery

Last Trade

Last Intent

Last Delivery

Lumber (LB)

Jan 2 Jan 16

Jan 16 Jan 15

Jan 31

Feb 25

ProductsFirst Position (Optional)

First Intent First Delivery Last Trade Last Intent Last Delivery

Soybean (S)/Mini-Soybean (YK)/Soybean Meal (06)/Distillers Dried Grain (DDG)

Dec 30 (Dec 26) Dec 30 Jan 2 Jan 14 Jan 15 Jan 16

Soybean Oil (07)/Rough Rice (14) Dec 30 (Dec 26) Dec 30 Jan 2 Jan 14 Jan 23 Jan 24

Products Last Trade First Notice Day First Delivery Last Notice Day Last Delivery

Gold (GC)/Silver (SI)/1000-oz Silver (SIL)/Copper (HG)/Palladium (PA)/Platinum (PL)

Jan 29 Dec 31 Jan 2 Jan 30 Jan 31

PA-Code Description

PA0012358 Argus Renewable Volume Obligation year

CME Lists Group Delivery Dates for January 2014 Lumber, Soybean, and Metals ContractsOn December 30, 2013, CME listed the following relevant delivery dates for January 2014 CME, CBOT, and NYMEX/COMEX lumber, soybean, and metals contracts:

CME

CBOT

NYMEX/COMEX: Metals


http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140102use.pdf



CBOT Expands Listing of Trading Months for Wheat-Corn Intercommodity Spread OptionsOn trade date January 27, 2014, the Chicago Board of Trade (CBOT) will list March, May, and September expirations in CBOT Wheat-Corn Intercommodity spread options. The CBOT Wheat-Corn Intercommodity spread options are option contracts on the spread between CBOT SRW Wheat futures and CBOT Corn futures. The exchange currently lists only July and December expirations.

The Commodity Futures Trading Commission (CFTC) will be notified of the listing of additional trading months during the week of February 2, 2014. See the original announcement.

NCDEX Modifies Contract Specifications for Maize-Feed/Industrial Grade FuturesOn January 18, 2014, the NCDEX modified contract specifications for its Maize-Feed/Industrial Grade futures expiring from May 2014 and thereafter. These futures contracts have a ticker symbol of MAIZEKHRF and MAIZERABI.

Contract modifications include the following:

• Moisture is increased from a 12% basis to a 14% maximum.

• In relation to the premium discount on futures, maize with a count of more than 400 grains per 100 grams will now be rejected.

To view contract specifications for Kharif Maize-Feed/Industrial Grade futures expiring in January, February, and March 2014 and Rabi Maize-Feed/ Industrial grade futures contracts expiring in April 2014, see the original announcement.



Contract Specification Existing Contract Specification Modified Contract Specification

Additional delivery center

Bareilly, Indore, Itarsi, Kanpur, Karnal, Khanna, Kota, Rajkot, and Bangalore (within 50 km radius from municipal limits). The location-wise premium/discount for all centers will be announced by the exchange prior to the launch of the contract.

Kanpur, Kota (within 50 km radius from municipal limits). The location-wise premium/discount for all centers will be announced by the exchange prior to the launch of the contract.

ZEMA User Forum MAY 27-28, 2014

REGISTER TODAY!www.ze.com/events

NCDEX Modifies Contract Specifications for Wheat FuturesOn January 18, 2014, the NCDEX modified contract specifications for its wheat futures expiring from May 2014 and thereafter. These futures contracts have a ticker symbol of WHEAT.

Contract modifications include the following:

To view contract specifications for wheat futures expiring in January, February, March, and April 2014, see the original announcement.

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http://ncdex.com/Downloads/Circulars/PDF/Modification_contract_specifications_Maize_Feed_Industrial_Grade_futures_contract_18012014.pdf

http://ncdex.com/Downloads/Circulars/PDF/Modification_contract_specifications_Wheat_futures_contract_18012014.pdf

AccuWeather Announces Public Support for New ChannelOn January 17, 2014, AccuWeather provided an update regarding their new channel. Public support for the new AccuWeather channel, which was announced in the third quarter of 2014, has been very high.

The AccuWeather channel will be a multi-platform solution streamed on AccuWeather.com, other internet sites, and media partner mobile and internet sites. It will also likely be available through cable and satellite carriers. See the original announcement.

CME Lists Delivery Dates for January 2014 Emissions ContractsOn December 30, 2013, CME listed the following relevant delivery dates for January 2014 NYMEX energy contracts:



Environmental Markets and Weather Services



In Delivery Month European Union Allowance (EUA) (6T)/Certified Emission Reduction Plus (CPL)/Emission Reduction Unit (ERU) (REU)

Jan 27 Jan 27 Jan 27 Jan 28 Jan 29

Daily European Union Allowance (EUA) (EUL)Date of Contract

Date of Contract

Date of ContractDate of Contract +1 Business Day

Date of Contract +2 Business Days

RGGI (RJ) (December) Dec 31 Jan 2 Jan 2 Jan 6 Jan 6

RGGI (RJ) (January) Jan 31 Feb 3 Feb 3 Feb 5 Feb 5

CME Delists EUA Futures as a Result of Union Registry ClosureEffective on January 29, 2014, CME Clearing will delist daily European Union allowance (EUA) futures for contract days January 27, 2014 and January 28, 2014 as a result of the Union Registry’s closure on January 29, 2014.

The January in delivery month EUA monthly contract (commodity code 6T) and certified emission reduction plus monthly contract (commodity code CPL) will be delivered on January 28, 2014 as a result of the Union Registry’s closure. See the original announcement.

http://www.accuweather.com/en/press/22187842


http://www.cmegroup.com/tools-information/lookups/advisories/clearing/Chadv14-027.html

EU Emissions Trading Scheme to Remove 300mn Allowances in 2014On December 19, 2013, the EU Emissions Trading Scheme (ETS) decided to remove a maximum of 300mn allowances from the scheme in 2014, rather than the 400mn originally predicted. The Climate Change Committee and the European Commission made the final decision on how allowances will be removed on January 8, 2014.

The graph below shows a snapshot of how EU ETS allowance prices continued to drop near the end of Phase II of the EU ETS, even while the volume of allowances increased in comparison to the beginning of 2011. This graph was created in ZEMA using EEX Emission Spot Prices data.


Platts Extends RIN Year 1 Expiry DatesOn January 15, 2014, Platts extended the expiry date for its Year 1 (2012) renewable identification number (RIN) assessments to April 30, 2014. Previously, the expiry date for these RIN assessments was January 31, 2014. Platts’s RIN assessments reflect delivery one month ahead of the publication date.

Platts has extended the expiry date of these assessments as a result of the Environmental Protection Agency’s 2013 renewable fuel standard compliance, which has an extended deadline of June 1, 2014.


Argus Updates European Emissions Markets Report and Data FeedEffective from January 20, 2014, Argus will replace and amalgamate several data series in its European Emissions Markets report as a result of a change in the format through which ROC auction results are reported.

Data in Argus’s report will now reflect the latest ROC auction price, rather than any one specific compliance period or specification. Historical data effective from April 7, 2009 will be made available under a new code. Data prior to April 7, 2009 will retain its history under the inactive codes section in MyArgus.

The following new ROC assessment will be introduced with price types of 1, 2, and 8, a time stamp of 6, and a continuous forward of 0:

• PA0013277: Green power UK Rocs auction price

The following ROC assessments will be stopped. These assessments have price types of 1, 2, and 8, time stamps of 6, and continuous forwards of 1:

• PA0003147: Green power UK Rocs co-fired year

• PA003148: Green power UK Rocs non-co-fired yearSee the original announcement.

European HDD and CAT Weather Contract Months ExpandedEffective on trade date December 30, 2013, the Chicago Mercantile Exchange (CME) expanded its listing contract months for the products listed below.

Products in the table below previously had a listing schedule of 7 months (October-April); they will now have a listing schedule of 21 months (October-April):



Code Clearing/Globex Title

D0/D0 London Monthly HDD Futures

D1/D1 Paris Monthly HDD Futures

D2/D2 Amsterdam Monthly HDD Futures

D3/D3 Berlin Monthly HDD Futures

D4/D4 Essen Monthly HDD Futures

D5/D5 Stockholm Monthly HDD Futures

D9/D9 Rome Monthly HDD Futures

DQ/DQ Madrid Monthly HDD Futures

D8/D8 Barcelona Monthly HDD Futures

D6/D6 Oslo-Blindern Monthly HDD Futures

D7/D7 Prague Monthly HDD Futures


http://www.argusmedia.com/pages/NewsBody.aspx?frame=yes&id=880565&menu=yes


http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140120aeem.pdf


Products in the following table previously had the following listing schedule: “HDD: Minimum of two, and maximum of seven, consecutive calendar months (Oct-Apr) in a strip, for 1 season.” These products will now have this listing schedule: “HDD: Minimum of two, and maximum of seven, consecutive calendar months (Oct-Apr) in a strip, for the next 3 seasons.”

Contracts listed in the table below had a previous listing schedule of 7 months (April-October); they now have a listing schedule of 21 months (April-October).



D0V, D0X, D0Z, D0F, D0G, D0H London Heating Seasonal Strip Future

D1V, D1X, D1Z, D1F, D1G, D1H Paris Heating Seasonal Strip Future

D2V, D2X, D2Z, D2F, D2G, D2H Amsterdam Heating Seasonal Strip Future

D3V, D3X, D3Z, D3F, D3G, D3H Berlin Heating Seasonal Strip Future

D4V, D4X, D4Z, D4F, D4G, D4H Essen Heating Seasonal Strip Future

D5V, D5X, D5Z, D5F, D5G, D5H Stockholm Heating Seasonal Strip Future

D9V, D9X, D9Z, D9F, D9G, D9H Rome Heating Seasonal Strip Future

DQV, DQX, DQZ, DQF, DQG, DQH Madrid Heating Seasonal Strip Future

D8V, D8X, D8Z, D8F, D8G, D8H Barcelona Heating Seasonal Strip Future

D6V, D6X, D6Z, D6F, D6G, D6H Oslo-Blindern Heating Seasonal Strip Future

D7V, D7X, D7Z, D7F, D7G, D7H Prague Heating Seasonal Strip Future


G0/G0 London CDD Monthly Futures

G1/G1 Paris Monthly CDD Futures

G2/G2 Amsterdam Monthly CDD Futures

G3/G3 Berlin Monthly CDD Futures

G4/G4 Essen Monthly CDD Futures

G5/G5 Stockholm Monthly CDD Futures

G9/G9 Rome CDD Monthly Futures

GQ/GQ Madrid CDD Monthly Futures

G8/G8 Barcelona CDD Monthly Futures

HL/HL Oslo Blindern, CAT Monthly Futures

B7/B7 Prague CDD Monthly Futures



Contracts listed in the table below had the following previous listing schedule: “CAT: Minimum of two, and maximum of seven, consecutive calendar months (April-October) in a strip, for 1 season.” These products will now have this listing schedule: “CAT: Minimum of two, and maximum of seven, consecutive calendar months (April-October) in a strip, for the next 3 seasons.”

The graph below shows historical prices of monthly HDD futures for Paris, London, Rome, and Stockholm in the last four years. This graph was created in ZEMA using CME Futures Settlements data.



G0J, G0K, G0M, G0N, G0Q, G0U London Cooling Seasonal Strip Futures

G1J, G1K, G1M, G1N, G1Q, G1U Paris Cooling Seasonal Strip Futures

G2J, G2K, G2M, G2N, G2Q, G2U Amsterdam Cooling Seasonal Strip Futures

G3J, G3K, G3M, G3N, G3Q, G3U Berlin Cooling Seasonal Strip Futures

G4J, G4K, G4M, G4N, G4Q, G4U Essen Cooling Seasonal Strip Futures

G5J, G5K, G5M, G5N, G5Q, G5U Stockholm Cooling Seasonal Strip Futures

G9J, G9K, G9M, G9N, G9Q, G9U Madrid Cooling Seasonal Strip Futures

G8J, G8K, G8M, G8N, G8Q, G8U Barcelona Cooling Seasonal Strip Futures

G8/G8 Barcelona CDD Monthly Futures

HLJ, HLK, HLM, HLN, HLQ, HLU Oslo Cooling Seasonal Strip Futures

B7J, B7K, B7M, B7N, B7Q, B7U Prague Cooling Seasonal Strip Futures



CME Permits Block Trading on Yen-Denominated Nikkei Stock Average FuturesPending relevant regulatory review periods, CME will begin to permit block trading in options on yen-denominated Nikkei Stock Average futures at a block trade minimum threshold of 50 contracts.

A complete listing of CME and CBOT products in which block trading is permitted is available in Section 12 of the original announcement, including times affecting interest rate products.See the original announcement.

NASDAQ OMX Clears First Buy-Side Client Interest Rate SwapOn December 23, 2013, NASDAQ OMX Clearing (NASDAQ OMX) announced its first buy-side client cleared interest rate swap. This interest rate swap, part of NASDAQ OMX’s move to offer buy-side firms access to NASDAQ OMX’s OTC clearing service, was cleared between SEB Clearing Services and Nektar Fund.

OTC instruments available for clearing are Swedish krona-denominated interest rate swaps, overnight index swaps, and forward rate agreements. NASDAQ OMX will expand its service in 2014 to also include Danish krona, Norwegian krona, and euro-denominated instruments. Buy-side firms can access the OTC clearing service through NASDAQ OMX’s approved OTC clearing members.

To view a list of approved interest rate swap clearing members,see the original announcement.

Euronext and Invesco PowerShares Launch NYSE Century ETFOn January 15, 2014, NYSE Euronext and Invesco PowerShares Capital Management LLC—a global provider of exchange-traded funds (ETFs)—announced the launch of the PowerShares NYSE Century Portfolio (NYCC) on NYSE Arca.

NYCC is based on the NYSE Century Index, an index which includes 372 U.S. companies that have been incorporated for at least 100 years, are listed on a U.S. exchange, and have a market capitalization of at least $1 billion. NYCC is the first fund based on the NYSE Century Index. See the original announcement.

Eurex Offers New Index DerivativesOn February 10, 2014, Eurex Exchange (Eurex) will offer four new index derivatives. The introduction of these index derivatives is based on Eurex’s license agreement with Warner Börse AG.

New indices listed on Eurex include:

• ATX®: Contains the 20 most heavily traded Austrian stocks.

• ATX® five: Consists of the 5 largest securities in the ATX index.

• CECE® EUR: Comprises the 25 largest listed stock corporations on the Polish, Czech, and Hungarian stock exchanges.

• RDX® EUR: Consists of 15 Russian securities listed as ADRs/GDRs outside of Russia.

All new index futures and options will be settled in cash. Futures will be available for trade between 8 a.m. and 10 p.m. CET; options will be available in accordance with the trading hours of underlying cash markets. The contract value for each index point is ten euros. See the original announcement.

FX, Interest Rates, Credit and Equity Indexes


http://www.cmegroup.com/tools-information/lookups/advisories/market-regulation/CME_CBOT_RA1314-3.html

http://www.nasdaqomx.com/newsroom/pressreleases/pressrelease?messageId=1233194&displayLanguage=en

http://www.nyse.com/press/1389612025711.html

http://deutsche-boerse.com/dbg/dispatch/en/notescontent/dbg_nav/press/10_Latest_Press_Releases/10_All/INTEGRATE/mr_pressreleases?notesDoc=BE7CBC885252ECB4C1257C6600464727&newstitle=eurexintroducesnewindexderivat&location=press



Eurex Lists New Futures and Options on ATX, ATX five, CECE EUR, and RDX EUR IndexesOn February 10, 2014, Eurex will introduce new futures and options on the ATX®, ATX® five, CECE® EUR, and RDX® EUR indexes.

Product codes for new futures are listed below:

Product codes for new options are listed below:

For further contract specifications, see the original announcement.

Index Product Code ISIN

ATX® Index FATX DE000A1YD5K9

ATX five Index FATF DE000A1YD5L7

CECE® EUR Index FCEE DE000A1YD5M5

RDX® EUR Index FRDE DE000A1YD5N3

Index Product Code ISIN

ATX® Index OATX DE000A1YD5P8

ATX five Index OATF DE000A1YD5Q8

CECE® EUR Index OCEE DE000A1YD5R4

RDX® EUR Index ORDE DE000A1YD5S2

ETF Name Asset Class ISINTotal Expense Ratio

Distribution Policy

Benchmark

UBS (Irl) ETF pic-MSCI USA 100% hedged to EUR UCITS ETF (EUR) A-acc

Equity index ETF DE000A1YD5P8 0.30 percent Non-distributing MSCI USA 100% hedged to EUR

ETF Name ISINTotal Expense Ratio

Distribution Policy

Fund Currency Trading Currency

Db X-trackers harvest CSI300 Index UCITS ETF (DR)

LU0875160326 1.10 percent Distributing USD EUR

New UBS ETF Launched on XetraOn January 15, 2014, Deutsche Börse introduced a new exchange-listed equity index fund issued by UBS in their Xetra segment. This new ETF enables investors to participate for the first time in the performance of the MSCI USA index; it also enables investors to benefit from hedging against exchange rate fluctuations between the euro and dollar.

Information about the new UBS ETF is included below:


New Physical Replication CSI300 ETF Launched on XetraOn January 16, 2014, Deutsche Börse introduced a new ETF on its Xetra segment. This ETF, the db X-trackers Harvest CSI300 Index UCITS ETF (DR), physically replicates the Chinese CSI300 Index, thus enabling European investors to participate for the first time in the performance of the CSI300 Index.

Deutsche Börse’s new ETF was issued by Deutsche Asset and Wealth Management and Harvest Global Investments. Harvest Global Investments, a Renminbi-qualified institutional investor (RQFII), has the authorization required for the new ETF to directly invest in A-class Chinese equities.

Information about the new ETF is included below:


http://www.eurexgroup.com/blob/group-en/46532-786194/786192/4/data/er14014e.pdf

http://deutsche-boerse.com/dbg/dispatch/en/notescontent/dbg_nav/press/10_Latest_Press_Releases/10_All/INTEGRATE/mr_pressreleases?notesDoc=8D6F95282441B3BBC1257C610036DEE0&newstitle=newubsetflaunchedonxetra&location=press

http://deutsche-boerse.com/dbg/dispatch/en/notescontent/dbg_nav/press/10_Latest_Press_Releases/10_All/INTEGRATE/mr_pressreleases?notesDoc=8B7E1C60D321AEE6C1257C620033712D&newstitle=europesfirstphysicalreplicatio&location=press

Eurex and TASE Sign Derivatives Trading Cooperation Agreement On December 19, 2013, Eurex Exchange announced that they signed a cooperation agreement with the Tel Aviv Stock Exchange (TASE). Under the agreement, Eurex will list and clear index futures based on the TA-25 index, which is both Israel’s blue chip index and one of the most heavily traded regional equity indexes. Eurex’s TA-25 index futures will be denominated in U.S. dollars. The launch is planned for H1 2014.

By the end of Q3 2013, TA-25 index options were the tenth most traded index derivatives contract worldwide. The year-to-date 2013 average daily volume (ADV) in TA-25 index options traded at TASE is around 190,000 contracts.See the original announcement.

Thomson Reuters Reveals TRust Index Fourth-Quarter ResultsOn January 16, 2014, Thomson Reuters announced the results of its TRust Index, revealing that trust sentiment in the top 50 global financial institutions has decreased since the third quarter. TRust Index metrics also revealed several new trends in 2013, including a regional convergence of news and social media sentiment, continued confidence in analyst expectations, and a proliferation of regulatory activity.

Fourth-quarter TRust Index metrics revealed that the top 50 global financial institutions ended the year with a trust score of -1.75 percent, down from -1.5 percent in the third quarter. Top institutions in different regions had diverse levels of trust sentiment, as listed below:

• Europe/U.K.: -1.25 percent, down from -1.0 percent in the third quarter

• Americas: -1.85 percent, down from -1.6 percent in the third quarter

• Asia: -1.5 percent, down from -1.0 percent in the third quarter

Decreased fourth-quarter trust sentiment is attributable to a range of issues, including the record mortgage and LIBOR-related bank fines, penalties, and settlements exacted by U.S. and European regulators, the U.S. government shutdown, cuts to Asian GDP growth forecasts by the World Bank, IMF and ECB activities around capital buffers, debt, leverage, and risk, and the release of the approved Volker Rule in December 2013.

For further information on the results of the fourth-quarter TRust Index, see the original announcement.



CME Lists Delivery Dates for January 2014 Currency ContractsOn December 30, 2013, CME listed the following relevant delivery dates for January 2014 CME currency contracts:

CME


Products First Holding First Intent First Delivery Last Trade Last Intent Last Delivery

Mexican Peso (MP)/South African Rand (RA)/USD/ZAR (ZAR)/Offshore Chinese Renminbi (CNH)/E-Micro Offshore Chinese Renminbi (MNH)

N/A Jan 13 Jan 15 Jan 13 Jan 13 Jan 15

http://deutsche-boerse.com/dbg/dispatch/en/notescontent/dbg_nav/press/10_Latest_Press_Releases/10_All/INTEGRATE/mr_pressreleases?notesDoc=0E20AD9785411730C1257C46004B0D4C&newstitle=taseandeurexsignderivativestra&location=press

http://thomsonreuters.com/press-releases/012014/Trust-in-Global-Financial-Institutions-Stronger-Over-2013


CFTC and Monetary Authority of Singapore Sign MOU On December 27, 2013, the U.S. Commodity Futures Trading Commission (CFTC) and the Monetary Authority of Singapore (MAS) signed a memorandum of understanding (MOU) to enable information sharing. Information exchanged between the two organizations will be regarding supervision and oversight of regulated entities that operate on a cross-border basis in the United States and Singapore. Other issues addressed in the MOU included markets and organized trading platforms, central counterparties, trade repositories, intermediaries, dealers, and other market participants.See the original announcement.

Genscape Introduces Customizable QAP Plans and Readiness AssessmentsOn January 15, 2014, Genscape announced that at the 2014 National Biodiesel Conference and Expo–held in San Diego this January–Genscape experts will offer customizable quality assurance procedure (QAP) plans and readiness assessments to qualified attendees.

Genscape will offer customizable QAP plans and readiness assessments because an increasing number of Genscape cli-ents require QAP as part of their risk management procedures.See the original announcement.

The Wall Street Journal Launches WSJD WebsiteOn January 1, 2014, The Wall Street Journal launched WSJD, a website which features technology news, analysis, commentary, and consumer product reviews.

WSJD will also host live events around the globe throughout the year; these events will be attended by top technology newsmakers, innovators, and entrepreneurs. One upcoming event is a tech conference from October 27-29, 2014.

WSJD can be found on twitter @wsjd or contacted via email at [email protected] the original announcement.

FERC and CFTC Sign MOUs on Jurisdiction and Information SharingOn January 2, 2014, the U.S. Federal Energy Regulatory Commission (FERC) announced that it signed two memoranda of understanding (MOU) with the Commodity Futures Trading Commission (CFTC). These MOUs address circumstances of overlapping jurisdiction and help the two commissions share information about market surveillance and investigations into potential market manipulation, fraud, or abuse. Overall, the MOUs will enhance regulations that protect energy market competitors and consumers.

The jurisdiction MOU outlines a process by which FERC and the CFTC will notify one another of activities that may involve overlapping jurisdiction; it will also help the agencies to further address regulatory concerns.

The information sharing MOU establishes procedures through which FERC and the CFTC will share information of mutual interest related to their respective market surveillance and investigative responsibilities. The agencies will also share appropriate data relating to financial markets for gas and electricity on an ongoing basis.

These MOUs were formed as a result of Congress’s Dodd-Frank Wall Street Reform and Consumer Protection Act. See the original announcement.

Platts Corporate Name Changed to “McGraw Hill Financial, Inc.” Effective from January 6, 2014, Platts will change its copyright notice in all market data files from “The McGraw-Hill Companies, Inc.” to “McGraw Hill Finan-cial, Inc.” See the original announcement.

CME Expands Use of FIXML Regulatory Trade Block IDFor trades dated on or after February 10, 2014, all CME U.S. Clearing real-time trade confirmation and allocation messages will carry a regulatory trade ID block containing a unique trade identifier (UTI). These UTIs supply European Union (EU) clients with a key data element when meeting European Market Infrastructure Regulation (EMIR) regulatory reporting requirements. These UTIs have the same block and attribute currently used for unique swap identifiers (USIs) displayed on some CME Clearing FIXML confirmation messages. See the original announcement.

Other Matters


Other Matters

http://www.cftc.gov/PressRoom/PressReleases/pr6811-13

http://www.genscape.com/featured-news-releases/genscape-introduces-customizable-qap-plans-readiness-assessments-renewable

http://online.wsj.com/news/technology

http://wsjdconference.wsj.com/


http://new.dowjones.com/press-room/draft-wsjd-announcement/

http://ferc.gov/media/news-releases/2014/2014-1/01-02-14.pdf



TOCOM Announces Revisions for EFP and EFS Application ProceduresOn December 30, 2013, the Tokyo Commodity Exchange, Inc. (TOCOM) announced rule revisions for exchanges of futures for physicals (EFPs) and exchanges of futures for swaps (EFSs). These revisions, implemented on December 26, 2013, were undertaken to streamline exchange application procedures.

In EFP transactions, counterparties submit to exchanges to buy and sell orders that mirror off-exchange physical trades. EFP transactions are executed when the exchange accepts a counterparty’s application.

In EFS transactions, parties executing swap agreements enter a buy order and sell order at an exchange at the same price, contract month, and volume as the swap trade.

TOCOM’s revisions to EFP and EFS application procedures are as follows:


MCE Ltd. Advises Platts of Intent to Join Asia Mogas Paper MOCEffective December 20, 2013, MCE Ltd. has announced its intention to take part in Asia Mogas Paper MOC. Expressions of interest to trade will be published as MCE Ltd.

Comments and feedback can be sent to [email protected]. See the original announcement.

MCE Ltd. Advises Platts of Intent to Join European Jet Fuel Paper, EMEA Mogas Paper, and Naphtha Paper MOCEffective December 20, 2013, MCE Ltd. has announced its intention to take part in European Jet Fuel Paper, EMEA Mogas

Paper, and Naphtha Paper MOC. Expressions of interest to trade will be published as MCE Ltd.

Comments and feedback can be sent to [email protected] the original announcement.

EEX Acquires Majority Stake in Cleartrade Exchange On January 13, 2014, the European Energy Exchange (EEX) and Cleartrade Exchange (CLTX), a Singaporean futures exchange founded in 2010, announced that EEX has become the new majority shareholder in CLTX. EEX has a 52% holding CLTX; the transaction was financed with EEX book cash.

By acquiring a majority share in CLTX, EEX hopes to further promote Deutsche Börse Group’s Asia strategy.

EEX and CLTX will hold a joint press conference in London later in January to give further details about the deal. See the original announcement.

EEX and Cleartrade Exchange Create Combined Global OfferingOn January 23, 2014, the European Energy Exchange (EEX) and Cleartrade Exchange (CLTX) announced that they have collaborated to create a unique global offering in the commodities sector. The collaboration took place in December 2013 and has resulted in a combined group with over 300 members and 10 major asset classes.

EEX’s current product offering comprises energy and related products for power, natural gas, emission allowances, and coal; CLTX offers products such as freight, iron ore, fuel oil, and fertilizer. See the original announcement.

Eurex Acquires Stake in TAIFEXOn January 3, 2014, Eurex Zürich AG (Eurex), a subsidiary of Deutsche Börse AG, announced that it will become a minority shareholder of the Taiwanese futures exchange TAIFEX. Pending regulatory approval, Eurex will acquire a five percent stake in TAIFEX from Yuanta Financial Holdings. The price for this stake is 47 million U.S. dollars. The Yuanta Group will remain a shareholder in TAIFEX after the sale of the five percent stake.

From May 2014 onwards, Eurex and TAIFEX plan to list daily futures based on futures and options on the Taiwanese blue-chip index TAIEX after Taiwanese trade hours at Eurex Exchange.See the original announcement.


Other Matters

Revision to: Pre-Revision Post-Revision

Application Document

Exchange-provided appli-cation form accompanied by a copy of the written agreement for the subject trade

Exchange-provided application form only

Application Period

From 8:30 JST until 15:45 JST (15 minutes after the close of the day session). Subject to change when deemed necessary by the Exchange

From 17:00 JST until 15:45 JST of the following business day (Not including from 4:15 JST to 8:30)

http://www.tocom.or.jp/news/2014/20140107EFP.html





http://www.eex.com/en/Press%20Room/Press%20Release/press/152605

http://www.eex.com/en/Press%20Room/Press%20Release/press/153266

http://www.eurexgroup.com/group-en/newsroom/press-releases/765462/

Crude Oil Brent vs. WTI: Prompt-Month Contract (NYMEX)

On the New York Mercantile Exchange (NYMEX), crude oil prices for NYMEX prompt-month contracts dropped by more than 3% for Brent and Western Texas Intermediate (WTI) by the end of the fourth week of January 2014 when compared to December 2013.

By the end of the fourth week, the NYMEX Brent prompt-month contract dropped to $106 USD/bbl from $109 USD/bbl, almost equaling the past twelve month average. Meanwhile, WTI declined by $3 USD/bbl to $94 USD/bbl, the lowest level since March 2013. The Brent-WTI spread closed around $12 USD/bbl, $4 USD/bbl above the twelve month average.

WTI was under pressure as U.S. service industries expanded at a slower pace than what was forecasted in the previous month and U.S. fuel supplies rose. In early January 2014, a government report showed bigger-than-expected gains in gasoline and distillate supplies along with tepid demand—find-ings that supported the decline in WTI prices.1 EIA reported that domestic crude production rose to 8.15 Mbpd, the high-est level since September 1988.1 Also, inventories at Cushing, Okla. rose to 40.7 million.1 It is clear that inventories are high, but momentum is low. Although the market is supported by cold temperatures, temperature alone was not enough to push prices high in this well-supplied market.

After months of disruptions in production, Libyan oil production rose to 600,000-650,000 bpd.2 In the third week of January, OPEC reported that global demand for its oil fell by 0.5 Mbpd to 29.9 Mbpd. OPEC expects demand to decline further this year, which will extend Brent’s slide.3

Crude Oil Brent vs. WTI: Forward Curve (NYMEX)

On the New York Mercantile Exchange (NYMEX), crude oil futures slid as strong U.S. domestic production and weak economic data coincided with weaker-than-expected Chinese data, a coincidence which raises concerns about the world’s economic state. Brent for March delivery fell by $2 USD/bbl and was traded at $107 USD/bbl, whereas Western Texas Intermediate (WTI) futures dropped to $94 USD/bbl for same-month delivery. From December 2013 to January 2014, crude forward contracts until September 2019 dropped by $2 USD/bbl and $3 USD/bbl for Brent and WTI respectively, widening the Brent-WTI spread to $13 USD/bbl.

The U.S. Labour Department reported that the U.S. economy added only 74,000 jobs in December 2013, well below expected levels by 122,000 jobs. The labor participation rate fell to an almost 35-year low of 62.8%.1 The Labour Department’s monthly job reports are closely watched by oil traders, as these reports show the economic health of the world’s biggest crude oil consumer. The Federal Reserve is scheduled to meet in the final week of January to review the economy and, perhaps, assess its tapering policy. On the other hand, the opening of the southern leg of the Keystone XL pipeline is expected to reduce a bottleneck at a key storage hub (the projected delivery rate for the southern leg prior to the end of 2014 is 520,000 bpd).2 This development helps alleviate a supply glut in Cushing, Okla. As a shale gas revolution has boosted U.S. oil output to record highs, a large amount of crude remains trapped in storage tanks due to a lack of infrastructure that can connect crude storage to existing refineries.

Brent futures also declined after the preliminary HSBC China Manufacturing Purchasing Managers’ Index for January fell to a six-month low of 49, signaling economic contraction.2 This weaker-than-expected data concerns traders, as China has the world’s second-largest economy and has high energy demands.2

Monthly Market Analysis



*Graph created with ZEMA *Graph created with ZEMA

http://www.bloomberg.com/news/2014-01-08/wti-crude-fluctuates-before-supply-data.html



http://www.platts.com/latest-news/oil/newdelhi/petrotech-2014-libyan-oil-production-rises-to-26614196

http://online.wsj.com/article/BT-CO-20140117-701181.html

http://www.nasdaq.com/article/wti-oil-futures-edge-lower-on-us-demand-concerns-cm317574

http://www.nasdaq.com/article/brent-drops-from-2014-highs-awaiting-stockpile-news-20140123-00276





North American Natural Gas Spot Prices (ICE)

Although heavy winter storms and frigid weather conditions have been experienced in most parts of the U.S., California enjoyed mild winter temperatures. These mild temperatures caused a moderate demand for natural gas products in the West Coast; however, demand was very different on the East Coast.

On the Intercontinental Exchange (ICE), North American natural gas spot prices experienced unprecedented fluctuations in January when compared to the last month in three out of four major hubs: PG&E Citygate in California, Chicago Citygates, Henry Hub, and New York Transco Zone 6. From December 2013 to January 2014 (week ending January 21, 2014), monthly average prices surged in Henry Hub by 5% to $4.37 USD/MMBtu, in Chicago Citygates by 82% to $8.3 USD/MMBtu, and, most remarkably, by 191% in Trans Z6 to $19.4 USD/MMBtu. On the other hand, spot prices for PG&E Citygate in California dropped by 3% to $4.54 USD/MMBtu.

For the week ending January 22, 2014, EIA’s Natural Gas Weekly Update reported that natural gas spot prices rose in most of the country, particularly in the Northeast, where record high prices were traded due to extremely cold weather conditions in densely populated areas.1 As a result, gas consumption increased significantly as temperatures fell drastically. From the third week of January to the fourth, total natural gas consumption rose by 18.9%, whereas the residential/commercial sectors in the Southeast and Midwest were driving the surge. In Trans Z6, spot prices jumped to an all-time high of $90 USD/MMBtu.2 The price surge along the East Coast highlights how a cold shock can cause demand for natural gas to skyrocket. The fact is, despite the pipeline network’s high inventory levels, the network cannot meet demands in certain markets.2

Henry Hub Natural Gas Forward Curve (ICE)

On the Intercontinental Exchange (ICE), natural gas futures at the U.S. benchmark Henry Hub in Erath, LA, rose by 2% in the weeks of January 2014 compared to last month. Henry Hub futures increased from $4.18 USD/MMbtu in December 2013 to $4.25 USD/MMbtu by the end of the fourth Friday of January 2014 for the following twelve months.

For the week ending January 22, 2014, EIA’s Natural Gas Weekly Update reported that February natural gas futures reached their highest level since June 2011 due to weather forecasts for persistent cold weather and resulting strong storage withdrawals.1

According to the Wall Street Journal, as the blast of Arctic air increased residential heating demands and caused gas futures to be traded at $4.463/MMBtu on Dec. 23, 2013–the highest level in two-and-a-half years–many power companies started switching to coal instead of gas to meet peak demands.2 This switch to coal may have reduced commercial demand for natural gas although gas inventories were at a five-year low at the beginning of the month due to high demands.2 Lingering extreme cold temperatures kept gas prices high for the next eight weeks, but the MDA’s prediction that warmer weather is on its way affected market speculations about peak demand.3

*Graph created with ZEMA *Graph created with ZEMA

http://www.eia.gov/naturalgas/weekly/

http://online.wsj.com/news/articles/SB10001424052702303933104579304452246495282

http://online.wsj.com/news/articles/SB10001424052702303933104579304452246495282

http://www.eia.gov/naturalgas/weekly/



http://www.reuters.com/article/2014/01/06/markets-nymex-natgas-idUSL2N0KG0XG20140106



Actual Weather (AccuWeather)

From December 2013 to the fourth Friday of January 2014, winter’s arrival heralded frigid temperatures across almost the entire U.S., except for the West Coast. The monthly average temperature in Sacramento increased by three degrees Celsius to 10C, whereas the monthly average temperature in Chicago dived by seven degrees to -15C, in Raleigh by five degrees to 3C, and in New York by six degrees to -4C. At the beginning of the New Year, the city of Chicago reached a record low temperature of -40C, but emerged from this deep freeze in the following days.

In all observed cities except for Sacramento, this year’s January turned out to be below the two-year average. Comparing the past two-year average of January temperatures to January 2014, this year felt colder than the two-year average in Chicago by 9 degrees, in Raleigh by 4 degrees, and in New York by 3 degrees. By contrast, Sacramento City experienced a milder winter, as the past two-year temperature average for January was 2 degrees lower than that of January 2014.

Electricity: Day-Ahead Prices (ICE)

On the Intercontinental Exchange, electricity day-ahead prices spiked in all the observed North American markets except the West Coast for the week ending January 24, 2014. From the previous month to January 2014 (week ending January 24), the day-ahead monthly average prices surged. Prices surged in PJM North by 207% to $115 USD/MWh, in ISO-NE by 60% to $181 USD/MWh, and in NYISO by 113% to an unprecedented $194 USD/MWh. By contrast, electricity day-ahead prices dropped in CAISO-SP15 by 7% to $49 USD/MWh as the West Coast experienced mild weather temperatures.

In one of the coldest winters in decades, ISOs in the Midwest and East Coast issued notices about the impact of cold weather on generation and distribution. To fully grasp the seriousness of supply constraints, PJM sought to temporarily lift the $1,000/MWh price cap for generators. Following in PJM’s footsteps, NYISO also sought a similar FERC approval to lift its $1,000/MWh price cap and compensate plants.1 Extreme weather conditions and unprecedented price volatility in Northeastern power markets made generators push for new mandates. The Northeast region reacted to these extreme weather conditions with upward spikes in wholesale power prices, the result of commercial and residential consumers’ struggle to procure natural gas supplies. The record-high winter peak demand along with unexpected outages of power plants and natural gas equipment drove peak electricity prices. Although many major natural gas pipeline projects came in service ahead of the 2013-14 winter, natural gas supplies to New York City remained constrained during extreme weather conditions.2




http://www.forbes.com/sites/peterdetwiler/2014/01/24/cold-weather-and-price-volatility-in-northeastern-power-markets-generators-seek-relief/

http://www.pennenergy.com/articles/pennenergy/2014/01/northeast-mid-atlantic-energy-markets-react-to-winter-freeze-gas-constraints.html

News from Data Vendors



New Data Reports from ZEMAZE is continuously working to expand our data coverage, as we provide our clients with data essential to their operations. Our highly flexible data parsers can collect information in any electronic format, from any source, and at a frequency clients need.

ZE has added several new data reports to ZEMA following the publication of our December issue of DataWatch:

Data Source Report Commodity

Amprion Solar Power Actual Electricity

Amprion Solar Power Forecast Electricity

Amprion Vertical Load Electricity

Amprion Wind Power Actual Electricity

Amprion Wind Power Forecast Electricity

Deutsche Börse Available Transfer Capacity Electricity

ETSOVista Total Demand (Actual and Forecast) Electricity

Fifty Hertz Vertical Load Electricity

ICAP Straddle Prices Others

ICAP Volatility Prices Others

IESO Variable Generation 5 Minute Energy Forecast Electricity

NEISO Seven-Day Wind Power Forecast Wind

NEISO Three-Day Reliability Region Demand Forecast Electricity

NEISO Winter Reliability-Demand Response Energy Charges Allocation Report Electricity

NEISO Winter Reliability-Demand Response Energy Charges Calculation Report Electricity

NEISO Winter Reliability-Demand Response Monthly Charges Allocation Report Electricity

NEISO Winter Reliability-Demand Response Monthly Charges Calculation Report Electricity

NEISO Winter Reliability-Generation Monthly Charges Allocation Report Electricity

NEISO Winter Reliability-Generation Monthly Charges Calculation Report Electricity

PJM Current Wind Generation and Forecast Wind

PMUM Daily Report Electricity

Poten & Partners Asphalt Market Price Others

Regelleistung Imbalance (SALDO) Electricity

Regelleistung Settlement Price (IGCC) Electricity

Regelleistung Tender Results (Minute Reserve) Electricity

Regelleistung Tender Results (Secondary Reserve) Electricity

Regelleistung Transfer (IGCC) Electricity



PEGAS Volumes for December 2013 Paris, January 7, 2014: PEGAS, the natural gas platform established by the European Energy Exchange (EEX) and Powernext, announced that a total volume of 23.0 TWh was traded on the platform and cleared by European Commodity Clearing (ECC) in December 2013.

Spot MarketsOverall, trading volumes on spot markets amounted to 16.5 TWh in December 2013. German spot markets (market areas GASPOOL and NCG) recorded a volume of 8.0 TWh, which included 0.9 TWh traded in German quality-specific gas products in December. In French spot markets (market areas PEG Nord, PEG Sud, PEG TIGF), traded volumes amounted to 7.0 TWh. The Dutch spot market recorded a volume of 1.5 TWh. In December 2013, the spot market volume included 2.0 TWh traded in spread products.

Derivatives MarketsIn December 2013, trading volumes on PEGAS derivatives markets amounted to 6.5 TWh. German futures markets (GASPOOL and NCG market areas) recorded a volume of 1.9 TWh. In French market areas, a total of 2.6 TWh was traded on PEG Nord and PEG Sud futures. The TTF futures market recorded a volume of 2.0 TWh in December. The derivatives market volume included 1.3 TWh traded in spread products.

Details on natural gas volumes and prices are available in the enclosed monthly report.

About the Pan-European Gas Cooperation (PEGAS) PEGAS is a cooperation between the European Energy Exchange (EEX) and Powernext. In the framework of this cooperation, both companies combine their natural gas market activities to create a pan-European gas offering. Members benefit from one common Trayport gas trading platform with access to all spot and derivatives market products offered by the two exchanges for the German, French, and Dutch market areas. Furthermore, spread products between these market areas are tradable on the same trading platform. For more information, visit www.pegas-trading.com.

About the European Energy Exchange (EEX) The European Energy Exchange (EEX) is the leading European energy exchange. It develops, operates, and connects secure, liquid, and transparent markets for energy and related products on which power, natural gas, CO2 emission allowances, coal, and guarantees of origin are traded. Clearing and settlement of all trading transactions is provided by the clearing house European Commodity Clearing AG (ECC). EEX is a member of Eurex Group. For more information, visit www.eex.com.

About Powernext Powernext SA manages complementary, transparent, and anonymous energy markets. Powernext gas spot and Powernext gas futures were launched on November 26, 2008 in order to hedge volume and price risks for natural gas in France and in the Netherlands. Powernext has managed the National Registry for electricity guarantees of origin in France since May 1, 2013. Powernext owns 50% in EPEX SPOT and 20% in EEX Power Derivatives. For more information, visit www.powernext.com.

PEGAS Monthly Figures Report for December 2013Volumes

Spot Market Index NameDec 2013 Index Value (min. / max. in EUR/MWh)

Dec 2013 in MWh Dec 2013 in MWh

GASPOOL 3,296,499 1,126,510

NCG 4,685,980 763,310

PEG Nord 4,243,520 2,381,150

PEG Sud 2,731,170 231,260

PEG TIGF 29,980 n/a

TTF 1,483,667 2,016,080

http://www.pegas-trading.com

http://www.eex.com

http://www.powernext.com



Indices

EE Index Name Dec 2013 Index Value (min. / max. in EUR/MWh)

GASPOOL EEX Daily Reference Price 26.480/29.532

NCG EEX Daily Reference Price 26.646/29.129

PEG Nord Powernext Gas Spot DAPPowernext Gas Spot EOD 26.62/29.10 25.89/29.32

PEG Sud Powernext Gas Spot DAPPowernext Gas Spot EOD 33.47/42.96 33.67/42.96

TTF EEX Daily Reference Price 26.849/29.009

Derivatives Market Index Name Jan 2014 Index Value (in EUR/MWh)

Germany EGIX (European Gas Index) – Monthly Average 28.019

GASPOOL EGIX – Monthly Average 27.924

NCG EGIX – Monthly Average 28.114

PEG Nord Powernext Gas Futures Monthly Index 28.52

PEG Sud Powernext Gas Futures Monthly Index 37.61

TTF Powernext Gas Futures Monthly Index 28.04

PEGAS: Powernext to Launch PEG TIGF/PEG Sud Spot Spread Contracts on February 4, 2014 Paris, January 21, 2014: Powernext announces the launch of a spot spread contract between TIGF and GRTgaz Sud delivery zones on February 4, 2014. This new product will be listed for all spot maturities on PEGAS, the common natural gas platform launched by Powernext and the EEX.

PEG TIGF and PEG Sud spot contracts have been traded on Powernext Gas Spot since November 26, 2008. By launching the spread between GRTgaz PEG Sud and PEG Nord in May 2011, Powernext Gas Spot was the first organized market in Europe to offer location spread products corresponding to the actors’ trading practices on an anonymous and cleared platform. These geographical spread products have progressively been offered between all hubs listed on PEGAS ever since, contributing to the development of the liquidity of the European gas markets and the transparency of their price references.

“There is now a clear market need for spread products between PEG TIGF and PEG Sud. The supply of the south of France strongly depends on LNG imports, and with the connection

from PEG Nord being regularly congested, volatility on these two hubs is comparatively much stronger than on PEG Nord. This new contract will help the 22 members of Powernext Gas Spot that are active on both PEG TIGF and PEG Sud to balance their portfolios in this region,” comments Jean-François Conil-Lacoste, Powernext’s CEO.

“GRTgaz supports the launch of this product as an efficient way to handle positions in highly correlated delivery zones, and also in the perspective of the creation of a common PEG in 2015,” noted Guy Fasanino, Commercial Director of gas transmission operator GRTgaz.

“This new product is expected to foster liquidity, and improve the quality of the balancing interventions on TIGF delivery area,” added Monique Delamare, CEO of gas transmission and storage operator TIGF.

About the Pan-European Gas Cooperation (PEGAS) PEGAS is a cooperation between the European Energy Exchange (EEX) and Powernext. In the framework of this



cooperation, both companies combine their natural gas market activities to create a pan-European gas offering. Members benefit from one common Trayport gas trading platform with access to all spot and derivatives market products offered by the two exchanges for the German, French, and Dutch market areas. Furthermore, spread products between these market areas are tradable on the same trading platform. For more information, visit www.pegas-trading.com. About the European Energy Exchange (EEX) The European Energy Exchange (EEX) is the leading European energy exchange. It develops, operates, and connects secure, liquid, and transparent markets for energy and related products on which power, natural gas, CO2 emission allowances, coal, and guarantees of origin are traded. Clearing and settlement

of all trading transactions are provided by the clearing house European Commodity Clearing AG (ECC). EEX is a member of Eurex Group. For more information, visit www.eex.com.

About Powernext Powernext SA manages complementary, transparent, and anonymous energy markets. Powernext gas spot and Powernext gas futures were launched on November 26, 2008 in order to hedge volume and price risks for natural gas in France and in the Netherlands. Powernext has managed the National Registry for electricity guarantees of origin in France since May 1, 2013. Powernext owns 50% in EPEX SPOT and 20% in EEX Power Derivatives. For more information, visit www.powernext.com.

Argus Launches Spot CFR East Coast India Coal Assessments Singapore, January 6, 2014: Global energy and commodity news and price reporting agency Argus has launched CFR coal assessments for the east coast of India. Argus will assess spot prices on a weekly basis for three main grades of coal delivered to the key port of Krishnapatnam. The grades are NAR 5,500 kcal/kg, GAR 5,000 kcal/kg and GAR 4,200 kcal/kg.

The new assessments further expand Argus coverage of key coal markets in the Asia-Pacific region and reflect growing interest in such price references in India amid rapid growth in imports in recent years. Indian thermal coal imports have grown to more than 120mn t in 2013 from around 90mn t in 2012, as demand continues to outpace supply. Coal is used to produce around 80pc of the country’s electricity, and demand for the fuel growing by more than 10pc/yr.

With these new price assessments, Argus provides a pricing tool for spot and term cargoes from an increasingly diverse number of sources. By providing greater visibility of price trends, these assessments are expected to help utilities and cement manufacturers in their import strategies and in managing price risk.

“We are pleased to offer customers greater insight into the price of coal delivered to one of Asia’s fastest growing import markets,” Argus chairman and chief executive Adrian Binks said. “The assessments illustrate the changing dynamics of the coal market and the importance of reliable price information in managing risk and taking advantage of these changes.”

The new assessments are published weekly in Argus Coal Daily International, a global report covering coal prices in key markets, as well as through Argus Direct, an advanced online platform.

Media Contacts

London: Seana Lanigan +44 20 7780 4272 [email protected]

http://www.pegas-trading.com

http://www.eex.com

http://www.powernext.com




IIR Energy Launches New NGLs Live Service What Is NGLs Live?

NGLs Live will utilize IIR Energy’s unique research methodologies to provide continuous updates on the P.E.C. status for new construction, capacity additions and expansions, and grassroots projects so that customers will always be one step ahead of the market.

NGLs Live will provide a focused product for wet gas plants, fractionation units, condensate splitters, isom units, ethylene, and many other gas processing plants and units.

What Do You Get with NGLs Live?

Comprehensive coverage of all existing and newly built natural gas liquids processing, transmission, storage, and exporting facilities in North America has been added to NatGas Live as an add-on feature to enhance consumers’ understanding of all things within the natural gas and products infrastructure markets.

Intelligent and Comprehensive Content:

• Detailed plant and unit profiles

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• Outages and shutdown activity

• Customizable outage, news, and project alerts delivered via e-mail, FTP, or mobile device

January 2014 datawatch.com Powered by

• Custom summary reports, outlooks, and forecasts

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Providing up-to-the minute information on the operational status of all major & minor natural gas infrastructure assets.

For a live demo, contact Paul Copello at 800-762-3361 x3430 or [email protected].

40



Record Volume Recorded on EPEX SPOT: 31.6 TWh Paris, January 3, 2014: In December 2013, a total volume of 31.6 TWh was traded on EPEX SPOT’s day-ahead and intraday markets (December 2012: 29.2 TWh). This is the best monthly result since the creation of the European Power Exchange and beats the last record from December 2011 (30.9 TWh) by 2.2%. Over the entire month, more than 1 TWh was traded on a daily average on EPEX SPOT’s markets, making it one of the most liquid places for spot power trading in Europe and the world.

Day-Ahead Markets In December 2013, power trading on the day-ahead auctions on EPEX SPOT accounted for a total of 29,141,566 MWh (December 2012: 27,575,997 MWh) and can be broken down as follows:

* Peak excl. weekend

The volume on the German/Austrian market reached a new all-time high, beating the previous record from October 2013 (21 670 182 MWh) by 2.3%.

Prices within the French and the German market, both coupled with the Benelux markets within Central Western Europe (CWE), converged 48% of the time.

Intraday Markets On the EPEX SPOT intraday markets, a total volume of 2,410,275 MWh was traded in December 2013 (December 2012: 1,630,877 MWh).

* Swiss market launched in June 2013

The German/Austrian market reached its second best result of all time and also hit the 2 TWh mark for the second time.

In December, cross-border trades represented 15.1% of the total intraday volume. Volume in 15-minute contracts amounted to 207,041 MWh. In December, they represented 9.9% of the volume traded on the German and Swiss intraday markets.

About the European Power Exchange (EPEX SPOT)

EPEX SPOT SE operates the power spot markets for France, Germany, Austria, and Switzerland (day-ahead and intraday). Together, these countries account for more than one third of all European power consumption. EPEX SPOT is a European company (Societas Europaea) based in Paris with a branch in Leipzig.



Ar-eas

Monthly volume

MWh

Monthly volume– Previous Year

MWh

Price–Monthly Average (Base/Peak*)

Euro/MWh

DE/AT

22,159,244 20,638,868 35.75 / 50.38

FR 5,439,227 5,459,899 49.71 / 61.54

CH 1,543,095 1,477,230 52.55 / 62.16

ELIX – European Electricity Index 43.54 / 57.86

AreasMonthly volume

MWh

Monthly Volume–Previous Year

MWh

DE/AT 2,055,071 1,401,993

FR 283,148 228,884

CH 72,056 0*


Swiss Stakeholders and EPEX SPOT Discuss Market Coupling on Swiss Borders Bern, January 9, 2014: The European Power Exchange (EPEX SPOT), together with Swiss stakeholders, has held a press conference today in Bern. In the media briefing, the following individuals participated:

• Dr. Walter Steinmann: Managing Director of the Federal Office of Energy (Bundesamt für Energie–BFE)

• Carlo Schmid-Sutter: President of the National Regulatory Authority Federal Electricity Commission (Eidgenössische Elektrizitätskommission–ElCom)

• Pierre-Alain Graf: CEO of transmission system operator Swissgrid

• Jean-François Conil-Lacoste: Chairman of the Management Board of EPEX SPOT

Topics discussed included the creation of the Swiss power exchange, a function which is vital for the implementation of market coupling on Swiss borders. Market coupling is a tool for integrating physical power markets. It will allow Switzerland to better integrate into the EU internal energy market, a move which will lead to enhanced social welfare in all coupled countries.

EPEX SPOT will establish a subsidiary in Bern, Switzerland to further facilitate communication with Swiss members and stakeholders.

About the European Power Exchange (EPEX SPOT)EPEX SPOT SE operates power spot markets for France, Germany, Austria, and Switzerland (day-ahead and intraday). Together these countries account for more than one third of all European power consumption. EPEX SPOT is a European company (Societas Europaea) based in Paris with a branch in Leipzig.

EPEX SPOT Prepares for Internal Energy Market Paris, Leipzig, and Vienna, January 15, 2014: In the fifth year following its creation, trading volumes on the markets of the European Power Exchange (EPEX SPOT) continue to grow. In 2013, 346 TWh were traded on its day-ahead and intraday power markets in Germany, France, Austria, and Switzerland. That is the best result in EPEX SPOT’s existence and corresponds to an overall increase of 2% compared to 2012 (339 TWh), following 314 TWh in 2011 and 279 TWh in 2010.

“The creation of EPEX SPOT–one common harmonized structure to accommodate and operate several national power markets–has led to a significant attraction of liquidity,” says Jean-François Conil-Lacoste, Chairman of the Management Board of EPEX SPOT. “The European Power Exchange has quickly become a key protagonist in the integration process of the European power market.” Over the past year, six key developments are noteworthy:

• An increase in 10 exchange members, to a total of now 212 companies active on the markets of EPEX SPOT. New members come mainly from Germany, Italy, and Poland.

• On the day-ahead, strong results on the German/Austrian market with two monthly records in October and December 2013.

• A less active price convergence between the German and French market, both coupled within Central Western Europe (CWE) market coupling, due to diverging market fundamentals.

• On the intraday, strong overall results and a year-on-year boost of 28.6% in trading volumes.

• The launch of the Swiss intraday market on 26 June 2013, followed by a strong take-off in terms of volumes and cross-border interaction, with intraday markets in Germany, France, and Austria. 91% of the volumes were traded cross-border, foreshadowing the benefits of Swiss market integration.

• An increase of trading volumes in 15-minute contracts by 104%, hitting 2.6 TWh in 2013. This outstanding result highlights the need for flexible tools in power trading.

42



Day-Ahead MarketsDay-ahead trading volumes in 2013 totaled 322,788,544 MWh (2012: 321,228,968 MWh) and can be broken down as follows:

The German/Austrian day-ahead market contributed its stable share of volumes, supported by the biggest and most active community of trading participants over all European markets. Renewables have become a generic part of spot trading in Germany. The German/Austrian Day-Ahead market stands as the European reference in terms of trading volumes, liquidity, and price signals.

The French day-ahead market displays stable results in a dif-ficult regulatory framework. The results are proof of confidence amongst market participants in the force of the free market. On the Swiss day-ahead market, a healthy increase in trading volumes continues. Reasons for this can be found in the new members on the Swiss market: After Germany and before Italy, Switzerland is now the second biggest EPEX SPOT market in terms of membership. Increased cross-border arbitration possibilities and ongoing liberalization over the past few years have also had a positive impact on trading volumes.

Market coupling, a tool to manage capacity congestion on the borders between national power spot markets, is a core service EPEX SPOT delivers together with European partners. Under marketing coupling, power exchanges’ orders and available cross-border capacities received from TSOs are auctioned simultaneously. As well, the trade of power and capacity occurs at the same time, which helps ensure that the best economic solution is automatically chosen. Prices are determined no longer on a national level—they are determined on a European level. Market coupling optimizes the use of existing infrastructure and increases the social welfare of all involved market participants.

Since November 9, 2010, the power markets of CWE, including Germany, France, and the Benelux countries, have been successfully coupled. As a result, price convergence between the German market and French market was observed in 48% of the hours in 2013.

The next step of European market integration, the launch of North-Western European (NWE) price coupling, will take place on 4 February 2014. NWE adds Denmark, Finland, Great Britain, Norway, Sweden, and the Baltic countries to the CWE region, thus covering 75% of European consumption. 17 partners from 12 countries have cooperated for two years to bring NWE into

existence. The launch is a significant step towards an integrated European power market and towards the implementation of the European target model for day-ahead markets.

NWE will also be the first implementation of the price coupling of regions (PCR) solution. PCR is an initiative by seven European Power Exchanges–amongst them EPEX SPOT–and provides systems and procedures for a pan-European coupling of power markets. It will be the engine for several regional market coupling initiatives that come into effect during 2014 and beyond.

Intraday MarketsIn 2013, total trading volumes on intraday markets amounted to 23,054,242 MWh (2012: 17,924,234 MWh), including: Volumes on the intraday markets of EPEX SPOT,

covering Germany/Austria, France and Switzerland, continue to climb. Overall intraday volumes increased sensibly by 28.6% year-on-year, underlining the relevance of intraday trading. In light of a European-wide transition towards renewable and therefore often intermittent power sources, trading participants more and more ask for flexible short-term trading platforms.

ComXerv, the intraday trading system used by EPEX SPOT, allows for seamless cross-border trading. The launch of intraday cross-border trading took place between France and Germany on December 14, 2010. The Austrian intraday market debuted in October 2012 and was instantly connected to Germany and France. The same applies for the Swiss market, which launched on June 26, 2013.

In so doing, the Swiss Intraday market benefits from tight integration with the French, German, and Austrian market. Over the year 2013, cross-border trades between all four markets accounted for 16.5% of traded volume on ComXerv; the year before, traded volume was 13.5%.

EPEX SPOT helps facilitate German energy transition. Since December 14, 2011, flexible 15-minute contracts can be traded on the German market. These contracts allow members to balance their portfolios every 15 minutes. With the launch of the Swiss intraday market, 15-minute contracts were extended to Switzerland, with the possibility of cross-border trade with Germany.

43


AreasVolume 2013 in MWh

Volume 2012 in MWh

Average Base Price 2013 / 2012

Euro/MWh

DE/AT 245,566,864 245,268,525 37.78 / 42.60

FR 58,478,684 59,282,499 43.24 / 46.94

CH 1,543,095 16,677,944 44.73 / 49.52

Areas Volume 2013 in MWh Volume 2012 in MWh

DE/AT 19,699,240 15,757,403

FR 2,881,145 2,166,831

CH 473,857 0

In 2013, the traded volume from both German and Swiss 15-minute contracts amounted to 2,625,136 MWh, which is equivalent to a 104% increase compared to the 2012 volume (1,288,883 MWh). This increase in traded volume reveals the need for flexible tools in power trading—tools that EPEX SPOT can provide.

About the European Power Exchange (EPEX SPOT)

EPEX SPOT SE operates the power spot markets for France, Germany, Austria, and Switzerland (day-ahead and intraday). Together, these countries account for more than one third of all European power consumption. EPEX SPOT is a European company (Societas Europaea) based in Paris with a branch in Leipzig.



French Minister for European Affairs Thierry Repentin Visits European Power Exchange Paris, January 23, 2014: The French Minister for European Affairs, Thierry Repentin, recently visited the European Power Exchange (EPEX SPOT). The visit took place on January 22, on the occasion of the Franco-German day marking the 51st anniversary of the Élysée Treaty. The visit also followed an announcement by French President François Hollande to strengthen Franco-German cooperation in the energy sector. Jean-François Conil-Lacoste, Chairman of the Management Board of EPEX SPOT, explained the functioning of the power exchange and the relevance of price formation in Europe’s wholesale power markets.

After his tour at the European Power Exchange, Thierry Repentin praised EPEX SPOT as a key actor facilitating cooperation between Germany and France in the energy sector: “EPEX SPOT and the French-German Office for Renewable Energy illustrate the innovative potential of our two countries regarding cooperation in the energy sector. Both can build European initiatives to strengthen the energy market.”

Jean-François Conil-Lacoste said: “The European Power Exchange relies on a strong basis which was built by a trusting partnership between French and German entrepreneurs five years ago. Since then, our Franco-German DNA has evolved into a truly European one. This is the basis for integrating European power markets.”

Sven Rösner, Deputy Director of the French-German Office for Renewable Energy, added: “Renewables have become a natural part of the power system. EPEX SPOT has proven its fundamental role in market integration of renewables. Enhanced Franco-German cooperation in terms of renewables will facilitate the energy transition in both countries.”

About the European Power Exchange (EPEX SPOT)EPEX SPOT SE was created by the merging of the power spot activities (day-ahead and intraday) of French and the German energy exchanges. Both power wholesale markets, together with Swiss and Austrian wholesale markets, have been operated under one common roof ever since. Jointly, these countries account for more than one third of all European power consumption. EPEX SPOT is a European company (Societas Europaea) based in Paris with branches in Leipzig and Vienna. In 2013, 346 TWh was traded on EPEX SPOT’s markets.

About the French-German Office for Renewable Energies The French-German Office for Renewable Energies is a French-German association in charge of promoting renewable energies, building connections between French and German actors in the sector, and exchanging information and best practices between France and Germany. The office is supported by professional associations and companies from both countries and is based within the ministries in charge of energy in France and Germany.

History of Commodity Exchanges Many buyers and sellers trade commodity-linked contracts on the basis of rules and procedures which are set out by a commodity exchange. Derivatives instruments for trade differ depending on whether markets are “spot” or “futures” markets. Derivative instruments such as spot contracts are contracts for the purchase or sale of a commodity for immediate delivery. Futures contracts, by contrast, oblige market participants to buy or sell stocks or commodities with a predetermined future delivery date and price.

In the U.S., exchanges historically acted as a platform for trade in futures contracts, and still do to this day. U.S commodities futures exchanges began to take shape in 1846 when two cities in New York State, Buffalo and New York City, became connected by telegraph. By 1847, a variety of commodities were being traded between the cities, including flour, corn,

wheat, and eggs. Futures exchanges then spread to the U.K. as a result of the steamship, which was used to transport cotton across the Atlantic. Steamships reduced the amount of time required for cotton delivery from two months to two weeks. The steamship allowed for a much more rapid transfer of cotton samples and information, such that before cotton even arrived in the U.K., supply and demand conditions were already being evaluated by merchants based on incoming shipments—a precursor to modern futures trading. By the end of 1880, five cotton exchanges (New York, New Orleans, Liverpool, Havre, and Alexandria) were connected by a transatlantic cable. Tech-nological developments such as the steamship and transatlan-tic cable enabled traders in the U.S. and U.K. to evaluate future supply and demand conditions prior to the arrival of incoming commodity shipments and make trading decisions accord-ingly. As part of this trend, the Chicago Board of Trade (CBOT)

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Middle Eastern and Asian Commodity Exchanges Turn Up the Volume

By Peadar Walsh

Emerging markets in the Middle East and Asia are growing faster than markets in the western world, partly due to their large infrastructure projects and subsequent need for imported commodities.

Commodity market participants in the Middle East and China, like their Western counterparts, trade on both physical and financial exchanges in order to improve market liquidity. Despite their somewhat recent emergence, commodity exchanges in the Middle East and Asia are set to make a significant global impact,

due in part to their expanded product offerings.


was established in the U.S in 1848. The CBOT was a central marketplace for trade where buyers and sellers could meet to negotiate and formalize forward contracts, or contracts for future commodity shipments.

The performance of early twentieth century futures markets remains relatively unexplored because of the limited availability of appropriate trade information. However, in the mid-twentieth century, futures exchanges in the U.S. and Europe entered a period of decline. Between 1940 and 1970 in the U.S., government interventions brought about a decline in global agricultural commodity markets through the introduction of farm bills. Farm bills were first created during the Great Depression to give financial assistance to farmers, who were struggling due to an excess crop supply that created low prices for agricultural products. Farm bills were also introduced to control the food supply in the U.S. Although well-intentioned, these farm bills made futures contracts redundant. Similar to farm bills in the U.S., the Common Agricultural Policy (CAP) had a similar effect on European markets. In the Middle East and Asia, a variety of factors delayed the creation of futures markets in this period, including Soviet political influence, Eastern European control, and strong state control.

The resurrection of futures exchanges came about in the 1970s in the U.S. During the 1960s, the U.S. Federal Reserve began pursuing expansionary monetary policies for domestic reasons, paying little attention to growing balance-of-payments deficits. Consequently, there was a growth of global liquidity and an upsurge in commodity prices. This growth caused the Bretton Woods, an arrangement in Western countries and Japan which provided a system of fixed exchange rates, to collapse. Following this collapse, numerous exchange rate and interest rate markets were created. For example, a crude oil market emerged following the 1970s oil crisis in the major industrial countries of the world, particularly the United States, Canada, Western Europe, Japan, Australia, and New Zealand; a gold market developed following the delinking of gold prices from the dollar; and global exchange rates fluctuated, creating the need for an exchange and interest rate market. As many diverse markets emerged globally, the need for enhanced price discovery and risk management processes increased.

The U.S. Commodity Futures Trading Commission (CFTC) was formed in 1975 to regulate the rapid expansion of futures trading and the financial instruments employed in futures markets. Prior to this, commodity exchanges were self-regulated. As markets burgeoned, an array of financial instruments was introduced, including foreign currencies, U.S. and foreign government securities, and U.S. and foreign stock indices. In the 1980s and 90s, not long after the inauguration of the CFTC, the U.S. government decided to withdraw from regulating agricultural trade. As a result, new commodity exchanges were required to manage the price discovery and

financial trading processes that had been previously regulated by the CFTC.

Today, online commodity trading happens in over twenty major commodity exchanges worldwide, and many emerging markets are located in the Middle East and Asia.

Middle Eastern Oil Markets Growing: The Creation of the Dubai Mercantile ExchangeEmerging markets in the Middle East continue to grow as a result of the Middle Eastern need for commodities and the simultaneous expansion of products available to traders in this region. One market that is particularly expanding is the oil market, given the region’s high volumes of crude oil production. Oil trading in the Middle East is growing rapidly; however, creating a centralized and efficient market there will pose a challenge, given many domestic energy producers’ high reliance on government subsidies and the dominance of the Middle Eastern oil market by national energy companies such as Saudi Aramco, Natural Iranian Oil, and Abu Dhabi National Oil. Nonetheless, several key global commodity exchanges have been created in the Middle Eastern market—specifically, the Dubai Mercantile Exchange (DME), which will be discussed in greater detail below.

Several key exchanges have developed in the region—many of which have been important precursors to the DME. One precursor was the Dubai Gold & Commodities Exchange (DGCX), which was the first commodity exchange to emerge from the region. DGCX commenced trading in November 2005; today, the exchange is the lead-ing derivatives exchange in the Middle East. As well, in 2006, the Iran Mercantile Exchange (IME) was launched; this exchange trades agricultural, industrial, and petrochemical products in spot and futures markets. In 2008, the Iranian Oil Bourse (IOB) was launched; the IOB features petroleum, petrochemicals, and gas products traded in a range of diverse currencies.

The Dubai Mercantile Exchange (DME) was launched in 2007; it was the first exchange in the Middle East to add energy products to its standard set of commodity offerings. Now, the DME focuses on developing and trading monthly crude oil futures and financial contracts for energy producers, refiners, traders, and financial institutions in the East of Suez region. Presently, one of DME’s major goals is to have one of its products—its DME Oman Crude Oil Futures contract (OQD)—become the crude oil pricing benchmark for the Asian oil market, given the lack of an Asian benchmark and the huge quantities of crude oil imported to the Asia-Pacific region an-nually from the Middle East.

As the DME has grown, its importance to the global commodity market has been acknowledged by other

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noteworthy exchanges. For example, in 2009 the Chicago Mercantile Exchange (CME) partnered with DME. Since 2009, CME Globex has listed DME’s products alongside three of the world’s largest crude oil benchmark products (WTI, Brent, and DME Oman) on its electronic trade platform. CME Globex’s listing of DME’s Oman crude oil futures and financial contracts has increased risk management opportunities for Asian refiners interested in DME’s products, as the listing provides Asian refiners with refined hedging strategies. DME’s listing on CME Globex also helps establish arbitrage opportunities from traders worldwide (DME).

In 2012 and 2013, DME delivered its best-ever trading performance. By 2012, DME had traded 3.5 billion barrels of oil since its inception, reaching a daily high of 12,648 contracts on April 25, 2012 (Global Finance). DME then set a new record for average daily volume (ADV), reporting almost 7.5 million barrels of crude oil per day in 2013, and posting a year-on-year ADV trading growth of 36 per cent (DME). New records in total monthly volume were also set in July 2013, with 162.4 million barrels of crude oil traded through the exchange (Gulf News).

However, over the last two years, DME’s trade volumes have been fluctuating considerably, ranging from 1,000 contracts to 20,000 contracts between December 2012 and July 2013. This is illustrated in Figure 1 below.

Figure 1: Number of contracts traded on the DME (December 2012 – January 2014) (Source: DME)

Despite these fluctuations, the DME is the most active exchange in the oil market. DME’s Oman Crude Oil Futures contract (DME Oman) is the largest physically-delivered crude oil futures contract in the world and is the sole benchmark for Oman and Dubai’s exports of crude oil. The majority of this oil ends up in East Asia: “A staggering 40% of the oil DME trades goes to China, where demand for crude is increasing by 400,000 barrels a day” (Global Finance).

The graph below illustrates expectations that the DME Oman and Brent benchmarks will be on the same level in the near future. Historically, Brent has been the strongest benchmark price for purchases of oil worldwide.

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http://www.dubaimerc.com/news/10nov08.aspx

http://www.dubaimerc.com/news/05Jan14.aspx

http://gulfnews.com/business/markets/dubai-mercantile-exchange-records-36-increase-in-2013-trading-volumes-1.1274121


Middle Eastern Metals Markets Growing: The DGCXNot only has there been a boom in oil futures in Dubai, there has also been a surge in gold, silver, and copper futures—products which the DGCX provides.

With trading volumes of over 12 million contracts in a 10 month period, the Dubai Gold and Commodities Exchange (DGCX) is emerging as one of the fastest growing exchanges in the world. According to Money Show, DGCX volumes “have dramatically increased year over year as a result of sturdy growth in metal contract trades in the Middle East. In January 2013 alone, the DGCX registered monthly trading volumes of 1.1 million, which is the highest monthly total to date. This represents a 133% increase from the previous year” (FOW Intelligence).

On November 10, 2013, the DGCX reported trade volumes of 12.17 million contracts between January and October 2013, up from 7.78 million in November 2012. The DGCX is to launch a gold spot contract in 2014 which will further strengthen its gold offering. There is exceptional market strength for spot gold contracts in Dubai, as almost a quarter of all physical gold traded worldwide passes through the city. Spot gold contracts will enhance liquidity in the Middle Eastern gold market by removing the need for offshore credit and collateral for gold trading. Silver contracts are also experiencing significant growth. In fact, in 2013, Dubai silver futures were the stand-out performer in DGCX’s metal segment, increasing 59% from 2012 to reach 18,491 contracts (Gulf News).

The DGCX launched the region’s first copper contract in April 20, 2012. The introduction of this new contract is the result of a high demand from market participants as a result of ongoing infrastructure projects. Regional demands for copper are expected to continue to grow, with current figures estimating that over 600,000 tons of copper are consumed annually in the Middle East (UEA Interact).

New Exchanges in AsiaWhile the Middle East is growing, its relationship with the Asia-Pacific region is growing too. On September 13, 2012, the Dalian Commodity Exchange (DCE) signed a memorandum of understanding (MOU) with the DGCX. The MOU enables Middle Eastern investors and producers of energy, petrochemicals, and plastics to benefit from China’s huge consumer market (DataWatch, 16). While the Middle East attempts to keep up with Chinese demands for commodities, Chinese exchanges are growing, too.

Although Asia has a relatively short history of commodity trading, the continent has made giant strides in this field. As the leader in emerging markets, China in particular is thirsty for oil and other resources to keep up with its current econom-ic expansion. To compete in a global commodity market, emerging markets like China’s must establish political and economic stability and well-defined regulatory systems.

Historically, Asian countries have faced stringent regulatory constraints from their own governments; as a result, foreign

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Figure 2: Oman vs. Brent futures (Source: NYMEX)

http://www.fointelligence.com/Article/3152937/Exchanges-turn-up-the-volumes-in-January.html


http://gulfnews.com/business/markets/dgcx-trading-volumes-reach-new-highs-in-2013-1.1277462

http://www.uaeinteract.com/docs/DGCX_launches_Copper_Futures/49122.htm

http://www.datawatch.ze.com/assets/oct2012.pdf


market participants have not been able to trade with many Asian countries, including China. However, all of this is changing quickly. Many Asian countries are breaking free from regulatory restraints in their push towards economic development. As they do so, they are quickly moving to the forefront of the world’s commodity exchange boom.

New commodity exchanges are being introduced across the Asia-Pacific region as a result of surging prices of agricultural products, base and precious metals, and oil and gas. Numerous Asia-Pacific commodity exchanges have been created in the past five years. Launched in August 2010, the Singapore Mercantile Exchange (SME) was the first pan-Asian multi-product commodity and currency derivatives exchange. Since its launch, it has become the world’s largest commodity exchange as measured by number of contracts traded.

Soon after, the Hong Kong Mercantile Exchange (HKMEx) was introduced in May 2011. The HKMEx trades commodity futures, options, and other financial derivatives. This same year also saw the inception of the China Beijing Environment Exchange (CBEEX), which hosts trading in the Beijing market.

Figure 3 displays a full demonstration of the steady growth in trading volumes at the Shanghai Futures Exchange, Zhengzhou Commodity Exchange (ZCE), and DCE, formed in 1999, 1990, and 1993 respectively. Over the past decade, growth in trading volumes has been slow but steady as a result of trading growth being driven solely by domestic firms.

Figure 4 above illustrates the exponential growth in ZCE’s trading volumes, which quadrupled when compared to the same period in the previous year: “the Shanghai Futures Exchange and Hong Kong Exchange (now owning LME since December 2012) both experienced respective progresses in trading volumes of 95% and 38%” (FOW Intelligence).

As many Asian exchanges are developing, the region looks far more promising for external investors. Liquidity is building quickly, and the region’s exchanges demonstrate enormous long-term potential. For example, the HKMEx has recently begun trading in renminbi, a move which has allowed regional commodity traders across China to manage price risks better, since commodities are priced in a local currency as opposed to U.S. dollars or euros. The rest of China plans to make the renminbi freely tradable by 2015. This liberalization of China’s commodity trading market will help the country capitalize on its own currency, which will be music to the ears of foreign investors who are desperate to enter the lucrative Chinese market.

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Figure 3: The growth in trading volumes at China’s three major commodity exchanges (2002–2011) (Source: Futures Magazine)



Conclusion There is no doubt that global commodity exchanges will continue to become more interconnected and complex as new markets like those in the Middle East and Asia emerge and evolve. ZEMA helps energy and commodity market participants keep up-to-date on trends in emerging markets. With a robust library of historical and current commodity market data, ZEMA can help market participants track changes in demand and capacity across emerging markets. For more information on how ZEMA helps businesses in energy and commodity markets manage their complex data needs, book a complimentary live demonstration.u

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Figure 4: Chinese exchange–monthly volume (January 2005–January 2013) (Source: FOW Intelligence)

About ZE PowerGroup Inc.:ZE is an experienced software and strategic consulting firm that combines energy industry expertise with advanced software development capabilities. 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.

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Disclaimer:ZE DataWatch is a report comprised of data updates and expectations for energy and commodity markets, powered by ZEMA. The information contained in ZE DataWatch is for information purposes only. Although ZE PowerGroup believes the information in this report is 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.

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