August 2013

August 2013

MISO launches LMP contour map

EPA sets renewable fuel standards

NASDAQ, NGX make energy pact

ICE adds 25 futures, options

Will the Rise of Distributed Energy Spell the End for Traditional Utilities?

August 2013

Summary
Page 4 Platts to End Oso Nigerian oil OSP Code Platts to End Europe, Africa MDO Assessment Argus Ends Russian Fuel Oil Assessment Argus Ends 3 European Natural Gas Assessments Platts to Normalize CIF Azeri Light Crude Platts Clarifies CDN Holiday Nat Gas Methodology Platts Clarifies Met Coal FOB Australian Loading Ports Platts to Align European T2 Ethanol Barge Timings Platts Adds Global Oil Assessment Commentary Platts to Revise NWE Aromatics Assessed Timings Argus Changes Coking Coal Data Modules FERC Improves Oil Pipeline Reporting Argus Renames Seven U.S. Gasoline Products Agriculture, Forestry, and Metal Markets Pages 13-14

Editors Letter

With the Morris worm of 1988, arguably the first computer worm spread via internet, our exposure to threats has expanded into the new dimension, cyber. It was a sign of things to come. We have had to adopt a new lingo to go along with the new threats. Virus and worm are no longer only listed in medicine and biology dictionaries. Younger generations are unlikely to associate a Trojan horse with the Helen-Paris-Menelaus love triangle. Computer geeks will give you surprised looks when you engage in conversation with them about shopping for rods and hooks to go phishing. Honey pots are fed not exclusively to Winnie-the-Pooh. Firewalls are not designed for buildings or vehicles only. Power Markets Pages 5-6

Platts to Add Two EFA-Gregorian Gap Products EEX to Launch Belgian and Dutch Power Futures Argus Adds European Electricity Codes MISO Adds Locational Marginal Price Contour Map Tradition Energy Awarded Government Contract S&P to End Dow Jones U.S. Hourly Electricity Indexes Argus Ends European Electricity EFA Codes Platts to Change UK Power Assessment Calendar Argus Renames 16 Electricity Forward Contracts Fossil Fuel Markets Pages 7-12

CME Launches Short-Dated New Crop Options CME Adds Aussie Dollar Wheat Swap Contracts CME Launches Aluminum Midwest Premium Contracts Platts to Add Asian Engelhard Precious Metals Platts to Add Daily 58% Fe Iron Ore Assessment Platts to Add US West Coast Ferrous Scrap Assessment Platts to End Gold, Silver JM Assessments Platts to End Three Iron Ore Quarterly Price Assessments Platts to Change JM Precious Metal Assessments Argus Changes Aromatic Solvents Series Descriptions Environment Markets and Weather Services Pages 15-17

Platts to Publish Ceyhan FOB Netback Platts Adds August Oseberg, Ekofisk Crude Premiums Platts to Add Assessment for AUS-CHN Met Coal Capesize Platts Approves Adding 5 WAF Crude Assessments Platts to Add Caribbean VLCC Assessments Platts to Add Baltic-UKC Cargo Assessments Platts to Add Group 3 84 Octane Gas Assessments Platts Launches Light Houston Sweet Assessment Platts Adds Sep Oseberg, Ekofisk Crude Premiums Platts Adds Asia FOB Malaysia Gas on eWindow Platts to Add Clean UK Continent-West African 60kt Platts to Add Black Sea-Mediterranean 140,000 mt CME Adds USD-Denominated Malaysian Palm Oil Swaps CME Adds Baltic Freight Route Futures FERC to Remove Energy Communications Barriers NASDAQ, NGX Announce US Physical Energy Alliance DOE Announces Cellulosic Ethanol Production OPIS Lists Propane cif ARA ToT Cargoes Futures on ICE ICE Futures Europe add 25 futures, options contracts Argus Adds U.S. Gasoline Ex-Duty Products Argus Adds Three Biofuel Assessments Argus Ends 10 Central Asia Product Assessments Platts to End US Waterborne LS Diesel Assessments Platts to End Styrene CFR Monthly Avg Code Platts to End Castle Oil Posted Price Assessments Platts Removes Price Change Indicators in Oilgram 2

EIA Adds Hurricane Information Web Tool Platts Adds 2014 RIN Assessments MDA Adds RADARSAT-2 Station in Bali MDA to Provide WorldView Satellite Ground Station MDA to Provide Space Shuttle Communications SSL to Provide Satellite for Eutelsat SSL to Provide Satellite for Intelsat SSL Awarded U.S. Air Force Contract Option NOAA Weather Service Doubles Computing Capacity NYSE Joins UN Sustainable Exchange Initiative EPA to Launch Clean Water Act E-Reporting EPA Adds Environmental Solutions Web Tool EPA Launches National Stormwater Calculator EPA Sets 2013 Renewable Fuel Standards AccuWeather Launches 45-Day Forecast ACR Issues First California Registry Offset Credits Dual Adds Real-time Cockpit Weather, Flight Planning FX, Interest Rates, Credit, and Equity Indexes Pages 18-20 ICE Completes NYSE Liffe Derivatives Transition LCH.Clearnet Extends IR Swap Clearing to AUS Banks LCH.Clearnet To Clear US Credit Default Swaps LCH.Clearnet To Clear EU Credit Default Swaps BVC to Add Family of Indexes CME, trueEX to Deliver New Credit Spread Futures

August 2013

Summary
Henry Hub Natural Gas Forward Curve (ICE) Actual Daily Temperature (AccuWeather) Actual Monthly Temperature (AccuWeather) Electricity Day-Ahead Prices (ICE) News from Data Vendors Pages 27-30

HKEx Adds CES 120 Index Futures HKEx Adds Liquidity Provider to CES 120 Futures GFI Group Applies For CFTC Swap Execution Facility ISE, SecuredGrowth Launch ETP Indexes TAG Immobilien AG Adds Corporate Bond to FSE REALITES Launches Initial Bond Offer on NYSE NYSE Adds AEX Ext Index CFTC Announces iTraxx CDS Index Mandatory Clearing Xetra Gains Three iShares Bond Index ETFs Javelin Files Application to Trade Interest Rate Swaps Russell, NYSE Enhance RussellTick AVANA Launches Actively Managed Equity ETF DGCX Launches First Indian Equity Index Futures Other Matters Pages 21-23

ZE Launches Curve Portal New Data Reports for ZEMA EPEXSPOT: Upsurge in Intraday Cross-Border Trading EEX Spot Market Products to be Migrated on 28 August 2013 MDA Weather Services Offers Global Forecasting Services

IHS Acquires Car Info Provider R.L. Polk & Co. IHS Launches Two Cloud Versions of Goldfire US and EU Reach Derivatives Global Trade Deal MDA to Provide Tech Solutions for Boeing ISE To Launch Gemini Options Exchange NYSE Liffe Launches TKG Options NYSE Liffe to List Digital Security Options NYSE Liffe to List Belgium Postal Service Options Grand City Properties Adds Bond to Frankfurt Exchange Deutsche Borse, Liquidnet Offer German Block Trading Eurex Adds Options for French Govt Bond Futures Bahrain Bourse Boosts Engine with NASDAQ Tech HKEx Adds Five Stock Option Classes DOE Secretary Dedicates Supercomputer to NET Lab Tradition Launches Volatility Futures Platform NASDAQ OMX and NGX Create US Energy Alliance HKEx, Hubei Financial Services Office Sign MOU Monthly Market Analysis Pages 24-26

InDepth

Pages 31-35

Will the Rise of Distributed Energy Spell the End for Traditional Utilities? By Karen Hung It would be an understatement to say that utilities have been bracing for hard times in the last few years. Even as the economy has gradually recovered from the global economic recession, U.S. utilities have continued to suffer from decreasing demand, and thus decreasing revenues. This has mainly been the result of a confluence of circumstances: an increase in regulation due to climate change concerns, an influx of new demand-side technology, and nowthe rise of distributed energy, also known as distributed generation or distributed energy resource (DER) systems.

Crude Oil Brent vs WTI: Prompt-Month Contract (NYMEX) Crude Oil Brent vs WTI: Forward Curve (NYMEX) North American Natural Gas Spot Prices (ICE)

Have an idea for an article or would like to contribute to an upcoming issue? Write to us at datawatch@ze.com. To access previous issues of ZE DataWatch, go to datawatch.ze.com 3

August 2013

Editors Letter

Securing Data and Companies Against Cyber Attacks

With the Morris worm of 1988, arguably the first computer worm spread via internet, our exposure to threats has expanded into the new dimension, cyber. It was a sign of things to come. We have had to adopt a new lingo to go along with the new threats. Virus and worm are no longer only listed in medicine and biology dictionaries. Younger generations are unlikely to associate a Tr ojan horse with the Helen-Paris-Menelaus love triangle. Computer geeks will give you surprised looks when you engage in conversation with them about shopping for rods and hooks to go phishing. Honey pots are fed not exclusively to Winnie -the-Pooh. Firewalls are not designed for buildings or vehicles only. These new threats have meant that we have also engaged in a completely new type of war. We face cyber-attacks every time we open e-mails, browse the internet, download software or shop online. According to different studies, the estimated costs of cybercrimes range from $100 billion to $1 trillion a year in economic losses to the U.S. economy. This cyber warfare is complicated. It has two sides, us and them. Opposing sides follow different sets of rules, procedures, and positio ning. On our side, we have the Department of Homeland Security working industriously on a Cybersecurity Program for protection of the U.S. cyber infrastructure. We have the U.S. Department of Defense, which declared a cyberspace war in 2011 and established new operational branches, th including U.S. Cyber Command, Army Cyber Command, Navy Cyber Forces, and Air Forces Cyber/24 Air Force to guard our peace and quiet. Our enemies seem invisible; they are citizenship-irrelevant and we dont know their faces they could even be our neighbors. We are developing guiding principles for the war. NATO is now equipped with the Tallinn Manual, 95 black-letter rules of engagement in cyber warfare, released in March 2013. The rules, first of all, restrain our engagement and recommend that governments should refrain from launching attacks on civilians, hospitals, nuclear power stations, dams, and dykes. On the opposite side of the barricades, our enemies have no concept of self-limitation and Geneva Conventions are the most unlikely treaties to be adopted at their sessions. Our enemy weapons are being upgraded and improved on a constant basis. We are almost hopelessly stuck to a defensive side and develop counter weapons as a response to increasingly sophisticated tools and ammunition invented by our ghost enemies. Cyber security is usually associated with concerns over breaches into financial institutions, government, and military systems. Our enemies, however, are anything but complacent. More industries and entities are being added to their target list every day. Power utilities have not been left out. According to the Congressional survey on Electric Grid Vulnerability, the electric grid is being cyber-attacked by different weapons, ranging from phishing to malware infections, numerous times each day; one utility reported 10,000 attempted attacks each month. Other utilities have reported probes on networks looking for vulnerabilities in systems and applications on a daily basis. According to the analysis, attackers can hack into control systems of any electric equipment connected to the grid and throw the equipment out of phase, which will cause severe physical damage to the equipment. Power outages and disturbances already cost $10 billion USD for each event amounting to almost $200 billion USD to the U.S. economy annually. Can you imagine the bill the nation will have to pay if they succeed? The warning sign is often ignored by utilities; disregarded is the large scale of such potential disasters. The results of the Congressional survey disclosed that while utilities comply with mandatory cyber-security standards, voluntary NERC recommendations have been largely ignored. Inertia is being displayed by utilities and it is rather surprising in the light of reports demonstrating that attempts similar to the attack on state-run oil company Saudi Aramco, which ruined the hard drives of more than 30,000 computers, have been launched on major American energy companies. If successful, administrative systems of those companies would have been destroyed. In May 2013, the Department of Homeland Security released an advisory that warned of a heightened risk for a potentially devastating cyber-attack against U.S. infrastructure. FERC is moving ahead to strengthen the cyber security of the bulk electric system by extending the scope of the systems that are protected by cyber security standards (and, actually enhancing these standards); FERC is doing this through NERC. Meanwhile, esteemed utilities, do you remember the old English saying: An ounce of prevention is worth a pound of cure?

Olga Gorstenko
Editor Olga Gorstenko Phone: 778-296-4183 Email: olga@ze.com Advertising & Vendor Relationships Bruce Colquhoun Phone: 604-790-3299 4 Email: bruce.c@ze.com ZEMA Suite Inquiries Bruce Colquhoun Phone: 604-790-3299 Email: bruce.c@ze.com

August 2013

Power Markets

Platts to Add Two EFAGregorian Gap Products

On July 4, 2013, Platts announced it will be launching two new EFA trading-Gregorian calendar gap assessment products: September 29/30 2014 (baseload and peakload) and March 30/31 2015 (baseload and peakload). Comments can be sent by November 1 to ukpowercalendar@platts.com and pricegroup@platts.com.

Tradition Energy Awarded Government Contract

On August 13, 2013, Tradition Energy announced it had received a three-year contract from the U.S. Communities Government Purchasing Alliance to provide management services and energy consulting. Tradition will provide a services suite to the public agencies that includes procurement of natural gas, electricity, transportation and renewable energy, demand response services, procurement aggregation, data management, bill payment, risk management and more.

EEX to Launch Belgian and Dutch Power Futures

On July 31, 2013, the European Energy Exchange (EEX) has announced that it will introduce Belgian and Dutch power futures contracts, effective September 2, 2013. This introduction will expand its European contract product range in addition to its existing Phelix and French futures. The exchange will also introduce a transaction fee scheme for the new futures. The European Commodity Clearing (ECC) will provide clearing and settlement for the products.

S&P to End Dow Jones U.S. Hourly Electricity Indexes

On July 2, 2013, S&P Dow Jones Indexes announced it will stop calculating the Dow Jones U.S. Hourly Electricity indexes, effective, August 30. Also, end-of-day files will not be emailed or posted to FTP sites for these indexes. The following FTP directories will be affected: FTP Directories customalternativeenerindehour customalternativeenerindehour4C customalternativeenerindehour4Cdaily customalternativeenerindehour4Cdeep customalternativeenerindehour4CMay1 customalternativeenerindehourCOBdaily customalternativeenerindehourCOBdeep customalternativeenerindehourCOBMay1 customalternativeenerindehourhour customalternativeenerindehourMidCdaily customalternativeenerindehourMidCdeep customalternativeenerindehourMidCMar1 customalternativeenerindehourPV customalternativeenerindehourPVdaily customalternativeenerindehourPVdeep customalternativeenerindehourPVMay1 histcustomalternativeenerindehour4C histcustomalternativeenerindehourCOB histcustomalternativeenerindehourMidC histcustomalternativeenerindehourPV

Argus Adds European Electricity Codes

Effective November 1, 2013, Argus announced it will be adding new European Electricity codes to help with the transition of the UK electricity market from Electricity Forward Agreement (EFA) contracts to the Gregorian calendar contracts used in other European markets. For a full listing of new electricity products, see the Argus update here.

MISO Adds Locational Marginal Price Contour Map

On August 7, 2013, MISO launched an updated Locational Marginal Price (LMP) contour map that combines market data and real-time visualizations. The larger map also comes with a historical playback function that allows users to view 48 hours of previous market data and conditions. Other new features include colorized hubs, zoom capability, fuel mix pie charts, sortable LMP consolidated table, float-over information boxes, and more. Access MISOs new LMP Contour map here.

August 2013

Power Markets

Argus Ends European Electricity EFA Codes

Effective November 1, 2013, Argus announced it will be ending some of its European Electricity codes to help with the transition of the UK electricity market from Electricity Forward Agreement (EFA) contracts to the Gregorian calendar contracts used in other European markets. For a full listing of the affected electricity products, see the Argus update here.

Argus Renames 16 Electricity Forward Contracts

Effective August 1, 2013, Argus will rename its 16 existing European electricity forward contracts to reflect the Gregorian calendar use (as opposed to the previous EFA calendar). The affected products are as follows: Code PA0002822 PA0002820 PA0002818 PA0002821 PA0002670 PA0002671 PA0002672 PA0000273 PA0000305 PA0003026 PA0003023 PA0003022 PA0002681 PA0002697 PA0002707 PA0002684 Old Description UK OTC base load index cmltv season UK OTC base load index current mth UK OTC base load index month UK OTC base load index season UK OTC base load month UK OTC base load quarter UK OTC base load season UK OTC base Load year UK OTC peak load year UK OTC base load vol. current mth UK OTC base load volume month UK OTC base load volume season UK OTC off peak season UK OTC peak load month UK OTC peak load quarter UK OTC peak load season New Description UK OTC base load index cumulative EFA season UK OTC base load index current EFA month UK OTC base load index EFA month UK OTC base load index EFA season UK OTC base load EFA month UK OTC base load EFA quarter UK OTC base load EFA season UK OTC base load EFA year UK OTC peak load EFA year UK OTC base load vol. current EFA mth UK OTC base load volume EFA month UK OTC base load volume EFA season UK OTC off peak EFA season UK OTC peak load EFA month UK OTC peak load EFA quarter UK OTC peak load EFA season

Platts to Change UK Power Assessment Calendar

On July 4, 2013, Platts announced it would change the UK power assessment basis calendar from EFA trading to the Gregorian calendar starting with the Winter 14/15 seasons, effective November 1. All assessments prior with deliveries prior to October 2014 will continue to reflect the EFA calendar.

August 2013

Fossil Fuel Markets

Platts to Publish Ceyhan FOB Netback

On July 5, 2013, Platts announced it will publish 80,000 mt and 135,000 mt FOB Ceyhan netback assessments generated by the 80,000 mt CIF Augusta (loading basis Ceyhan) and the Platts daily freight rate assessments. It will continue to publish its FOB basis SUPSA assessment as normal. Feedback can be sent by August 15 to europe_crude@platts.com and pricegroup@platts.com.

Platts to Add Caribbean VLCC Assessments

On July 17, 2013, Platts proposed to add three Caribbean very large crude carrier (VLCC) route assessments, effective October 1. The assessments will reflect 270,000 mt crude cargoes loading out of the Caribbean for CaribbeanSingapore, Caribbean-China and Caribbean-West Coast India routes that carry Colombian Castilla Blend, Venezuelan Merey 16, Mexicos Maya, Roncador and Brazils Marlim grades.

Platts Adds August Oseberg, Ekofisk Crude Premiums

On July 1, 2013, Platts announced the crude Quality Premium for North Sea Ekofisk will be $0.4619/barrel and North Sea Oseberg will be $0.5056 for August-loading cargoes, effective July 1. These month-ahead QPs are found on Platts Global Alert (pages 1210 and 1212) and in Crude Oil Marketwire (under AAXDZ00 and AAXDX00).

Platts to Add Baltic-UKC Cargo Assessments

On July 24, Platts announced it will begin publishing daily assessments for a Baltic to UK Continent route, effective November 4, 2013. The assessments will reflect 30,000mt clean product cargoes primarily loading from Primorsk, UstLuga and Vysotsk in Russia; Porvoo, Finland; Riga and Ventspils, Latvia; Klaipeda, Lithuania, and Tallinn, Estonia and discharging in ports in Northwest Europe.

Platts to Add Assessment for AUS-CHN Met Coal Capesize

On July 9, 2013, Platts proposed to add an Australia-China metallurgical coal freight daily assessment for spot Capesize cargos, which would reflect a cargo of 140,000 mt (not exceeding 10 years of age) that would load seven-to-45 days forward from the assessment date, between Hay Point, Australia, and Qingdao, China. Feedback can be sent by July 29 to julien.hall@platts.com and cokingcoal@platts.com.

Platts to Add Group 3 84 Octane Gas Assessments

On July 23, 2013, Platts announced it will launch a U.S. Midwest Group 3 84 sub-octane (V grade) gasoline assessment that will reflect the Magellan Pipeline specifications at the Tulsa, OK, injection site on an FOB basis, effective September 3. At the same time, Platts is still seeking feedback on the discontinuing of its Group 3 conventional 87 octane gasoline (N grade) assessment, effective Dec. 31.

Platts Approves Adding 5 WAF Crude Assessments

On July 22, 2013, Platts announced it approved its June proposal to add five new West African crude assessments: Nigerias Akpo and Bonga grades (light and medium sweets, respectively), Angolas Pazflor and Plutonio (heavy and medium sweets, respectively), and the Republic of Congos Djeno (heavy sweet crude), effective August 1. These five add to Platts current 12 WAF assessments, six from Nigeria and six from Angola.

Platts Launches Light Houston Sweet Assessment

On July 26, 2013, Platts launched a Light Houston Sweet (LHS) crude oil assessment that reflects the crude flowing into Texas by Eagle Ford, Permian Basin, and Cushing, OK. The assessment reflects a WTI Midland at East Houston specifications (which may normalize Eagle Ford and Domestic Light Sweet bids, offers, and transactions), a minimum of 25,000 barrels, 1,000 b/d ratable crude, and delivery over the prompt pipeline month by a Free In Pipe (FIP) basis. Magellan East Houston Terminal, Oil Tanking Houston Terminal, and Enterprise Houston Crude Oil Terminal will deliver the crude, and the number of terminals may grow.

August 2013

Fossil Fuel Markets

Platts Adds Sep Oseberg, Ekofisk Crude Premiums

On August 1, 2013, Platts announced the crude Quality Premium for North Sea Ekofisk will be $0.4095/barrel and North Sea Oseberg will be $0.4921 for September-loading cargoes, effective July 1. These month-ahead QPs are found on Platts Global Alert (pages 1210 and 1212) and in Crude Oil Marketwire (under AAXDZ00 and AAXDX00).

CME Adds USD-Denominated Malaysian Palm Oil Swaps

On July 1, 2013, CME Group announced the first trade of its USD Malaysian Cruise Palm Oil Calendar Swaps, which are based on Bursa Malaysia Derivatives (BMD) Crude Palm Oil futures contracts and enable trades in forward months to be universally cleared instead of bilaterally between two parties. These swaps do not require financing or ISDA agreements to trade as the previous OTC ones did.

Platts Adds Asia FOB Malaysia Gas on eWindow

On August 6, 2013, Platts announced it plans to add eWindow technology to the Asian Market on Close (MOC) assessment process for its physical FOB Malaysia gas cargoes, effective August 16. The loading locations must be clearly stated on each offer communicated to Platts, which is now an easier process with the eWindow technology. The loadpoints currently reflected by Platts are Tanjung Bin, Paris Gudang, Tanjung Langsat and certain floating storage units in FOB Singapore.

CME Adds Baltic Freight Route Futures

On July 8, 2013, CME Group announced the launch of its financially settled Freight Route TC14 (Baltic) Futures, effective July 29. The futures are based on the tanker freight contract price for the cost of vessel freight on the Baltic route TC14, which moves 38000 metric tons of clean U.S. Gulf product to North West Europe. Name Freight Route TC14 (Baltic) Futures Clearing FRC Globex Span FRC FRC

Platts to Add Clean UK Continent-West African 60kt

On August 12, 2013, Platts announced it will add a UK Continent-West Africa route assessment based on 60,000 mt clean product cargoes, effective November 4. The assessment will reflect clean product cargoes (mostly gasoil and gasoline) on long-range tankers. Feedback can be send by October 1 to Europe_products@platts.com, tankers@platts.com, and pricegroup@platts.com.

FERC to Remove Energy Communications Barriers

On July 18, 2013, Federal Energy Regulatory Commission (FERC) issued a Notice of Proposed Rulemaking (NOPR) to get rid of communication barriers that exist between electric transmission operators and interstate natural gas pipelines in order to promote operational planning and more reliable service. The notice provides authority to voluntarily share operational and non-public information to promote reliable system services, yet prohibits the information recipients from disclosing this information to a third party or affiliate. Comments on the proposed rule can be submitted on the Commissions website (quoting Docket No.RM13-17-000) within 30 days of publication in the Federal Register.

Platts to Add Black SeaMediterranean 140,000 mt

On August 12, 2013, Platts announced it will add a Black SeaMediterranean route assessment based on 140,000 mt crude oil cargoes, effective November 4. The assessment will reflect Suez maximums carrying crude oil cargoes and are in addition to current 135,000 mt Black Sea-Med Suezmax. Feedback can be send by October 1 to Europe_products@platts.com, tankers@platts.com, and pricegroup@platts.com.

August 2013

Fossil Fuel Markets

Code JCM PDM SWM DBM RSM HOM RBM IMM RMM JCF GCJ SYS AEO AOM Name Jet CIF NWE Cargoes (Platts) Mini Future Dated Brent (Platts) Mini Future Singapore Gasoil (Platts) Mini Future Dubai 1st Line (Platts) Mini Future Singapore Jet Kerosene (Platts) Mini Future Heating Oil 1st Line Mini Future RBOB Gasoline 1st Line Mini Future Brent 1st Line Mini Future WTI 1st Line Mini Future Gulf Coast Jet Fuel (Platts) Average Price Option Gulf Coast Jet Fuel (Platts) Mini Future Fuel Oil 380 CST Singapore (Platts) Average Price Option Argus Eurobob Oxy FOB Rotterdam Barges Average Price Option Argus Eurobob Oxy FOB Rotterdam Barges Mini Future Naphtha CIF NWE Cargoes (Platts) Average Price Option Naphtha CIF NWE Cargoes (Platts) Mini Future Monthly Brent CFD (Platts) vs Third Month (Platts) Future Naphtha FOB Med Cargoes (Platts) Future C5 TMX 1a Index Future WCS TMX 1a Index Future SYN TMX 1a Index Future Brent NX 1st Line Mini Future Gulf Coast ULSD (Platts) vs Heating Oil 1st Line Balmo Future Ethanol T2 FOB Rotterdam Barges(Platts) Future TD19 FFA - Cross Med (Ceyhan to Lavera) (Baltic) Future

NASDAQ, NGX Announce US Physical Energy Alliance

On July 9, 2013, NASDAQ OMX Commodities and Natural Gas Exchange Inc. (NGX) announced the creation of the Alliance involving the following entities: NASDAQ OMX U.S. physical energy entity, NASDAQ OMX Commodities Clearing Company (NOCC), and the NGX physical energy exchange and clearinghouse. The alliance will maximize collateral efficiency and increase market liquidity (in the U.S. and Canada) and transparency. NGX will list physical power futures contracts in September as the NOCCs remaining physical power contracts are in novation to NGX. NGXs power futures will be listed exclusively for the ERCOT market, expanding at a later date into the WECC region.

DOE Announces Cellulosic Ethanol Production

On July 31, 2013, the Department of Energy (DOE) announced it had recognized the INEOS Bios Indian River BioEnergy Center in Vero Beach, FL, project as the first American commercial-scale cellulosic ethanol production. The joint venture between New Plant Energy and INEOS Bio uses gasification and fermentation technology that converts grass clippings, wood scraps, and other waste materials into fuels for transportation, heat and power.

NEC NAM CFL NIT TMF TMW TMS BNO MXQMYU EFR WCL

OPIS Lists Propane cif ARA ToT Cargoes Futures on ICE

On April 29, 2013, Oil Price Information Service (OPIS) announced the listing of its Propane cif ARA (ToT Cargoes) futures contract on ICE Clear Europe, ICE Futures Europes clearing house. The contracts are monthly cash settled futures based on the daily price of Propane cif ARA (ToT Cargoes), with a contract size of 1,000 metric tonnes, and a contract symbol of TOT.

To read more about these contracts, see the ICE Press Release here.

Argus Adds U.S. Gasoline ExDuty Products

Effective August 1, 2013, Argus also will be adding a new series of gasoline ex duty to its DHP files. The following gas codes have been added PA0012544 (Gasoline 83.7 RBOB NYH cargo ex duty), PA0012545 (Gasoline 87 regular conv NYH ex duty Wint Supp), PA0012546 (Gasoline 83.7 RBOB NYH cargo ex duty Wint Supp), PA001247 (Gasoline 87 regular conv NYH ex duty Sum Supp), PA0012548 (Gasoline 83.7 RBOB NYH cargo ex duty Sum Supp), PA0012549 (Gasoline 83.5 CBOB NYH cargo ex duty), and PA12550 (Gasoline 87 regular conv NYH ex duty). For a full list of gasoline products, please see the Argus U.S. product update here.

ICE Futures Europe add 25 futures, options contracts

On July 29, 2013, ICE Futures Europe announced the launch of 25 new futures and options contracts, effective August 12. There are four new oil options, one wet freight future, and 20 new oil futures all of which will be cleared on ICE Clear Europe. The new contracts include:

August 2013

Fossil Fuel Markets Platts to End Styrene CFR Monthly Avg Code
On July 9, 2013, Platts announced that it would be retiring the database code AAITW00 for Styrene CFR Taiwan Monthly Averages ($/mt), effective September 1. The price will continue to be reported under the code PHBHE03 instead.

Argus Adds Three Biofuel Assessments

Effective August 1, 2013, Argus will be adding the following biodiesel Rotterdam barge fob fuel assessments: Tallow OME RED, UCOME (Used cooking oil) RED (EU) and UCOME RED (DE). These additions will be assessed as differential midpoints Argus FAME RED assessments. For a full list of biofuels affected, please see the Argus biofuels update here.

Argus Ends 10 Central Asia Product Assessments

Effective July 25, 2013, Argus announced it will be discontinuing 10 Central Asia product assessments for its Caspian Market. The following products are affected: Code PA0008523 PA0008526 PA0008527 PA0008528 PA0008530 Description Gasoline A80 cpt Kudukli Tajikistan, Price Type 1 & 2 Gasoline A92 cpt Kudukli Tajikistan, Price Type 1 & 2 Fuel oil 1pc cpt Lugovaya Kyrgyzstan, Price Type 1 & 2 Fuel oil 1pc cpt Kudukli Tajikistan, Price Type 1 & 2 Gasoil diesel summer 0.2pc cpt Kudukli Tajikistan, Price Type 1 & 2

Platts to End Castle Oil Posted Price Assessments

On July 18, 2013, Platts announced that it will stop posting all oil prices for Castle Oil (a New York fuel oil and heating distributor), effective July 19, 2013. The New York No.2, No.4, and No.6 oils under codes POAAE00, PRAKR00, and PRALT00 respectively will no longer be published.

Platts Removes Price Change Indicators in Oilgram

On August 1, 2013, Platts announced it has removed from Platts Oilgram Price Report PDF any daily price change indicators, represented by the - or + signs. The change is to reduce confusion as to whether the assessments referenced price changes or premiums and discounts.

Platts to End Oso Nigerian oil OSP Code Platts to End US Waterborne LS Diesel Assessments
On July 19, 2013, Platts announced its intent to discontinue low-sulfur diesel (500 ppm diesel) waterborne assessments for the U.S. West Coast and Gulf Coast, effective January 1, 2014. Due to a limited demand and limited spot market activity for domestic pipeline assessments on low-sulfur diesel, Platts has previously discontinued this product. Feedback can be sent by September 21 to Americas_products@platts.com and pricegroup@platts.com. On August 9, 2013, Platts announced it will end the code for Nigerias Oso Condensate Official Selling Price (OSP), effective January 2014. The decision to discontinue comes after the company that sets Nigerian oil OSPs, the Nigerian National Petroleum Corporation, stopped providing the prices in February 2012. The Oso Condensate prices were published under code AAIQM00 on the Platts Market Price Database and on Page 1065 of Platts Global Alert.

10

August 2013

Fossil Fuel Markets

For a full listing of the affected electricity products, see the Argus update here.

Platts to End Europe, Africa MDO Assessment

On August 12, 2013, Platts confirmed it will end marine diesel oil bunker fuel assessments from Europe and Africa, effective September 2. Demand for MDO has been replaced with marine gasoil and similar oils, since 1986, and since MDA now is less than 1% of bunker fuel shipped, Platts will discontinue the assessments. The affected assessments include: Code POADJ00 POABH00 POABZ00 AAVWB00 AARSW00 AARSO00 AARTI00 AARST00 AARSG00 AARSJ00 AARTA00 POABR00 Assessment Rotterdam Antwerp Hamburg Gothenburg Great Belt Gdansk St Petersburg Gibraltar Algeciras Ceuta Las Palmas/Tenerife Durban Page 1850 1850 1850 1870 1870 1870 1870 1860 1860 1860 1860 1860

Platts to Normalize CIF Azeri Light Crude

On July 5, 2013, Platts proposed to normalize its Azeri Light crude oil assessment, based on CIF Augusta, to Turkish Port Ceyhan loaded volumes and may normalize the load port indications for the Black Seas Batumi or Supsa. The proposal is based on the divergence in volume and quality between the Black Sea and the Mediterranean loadings. The BakuTbilisi-Ceyhan Turkish Pipeline loadings will not be subject to delays from the Turkish Straits to the Mediterranean.

Platts Clarifies CDN Holiday Nat Gas Methodology

On July 15, 2013, Platts clarified its natural gas methodology for Canadian holidays falling on a Monday as follows: for daily gas indexes in the Northwest, Canadian Border (Sumas), and West Coast (Station 2), Friday deals are for flow Saturday to Tuesday. These deals will be published in Mondays edition and repeated in Tuesdays edition as well. Trades done on the holiday Monday may be used to formulate the index for Tuesday.

Argus Ends Russian Fuel Oil Assessment

Effective August 12, 2013, Argus announced it is ending the Fuel oil M-100 fca Astrakhan (RUB/t) assessment. The Russian-Caspian series will be stopped in DARM data module and the /DARM ftp folder. Code PA0004550 Description Fuel oil M-100 fca Astrakhan (for Central reg) Price Type 8, Time Stamp 26

Platts Clarifies Met Coal FOB Australian Loading Ports

On July 9, 2013, Platts clarified loading ports for its metallurgic coal FOB Australian assessments, including Dalrymple Bay, Hay Point, Abbot Point, Gladstone, Newcastle and Port Kembla. All hard coking coal freight rates for these ports are normalized to Hay Point port and PCI and semi soft freight rates are normalized to Dalrymple Bay.

Argus Ends 3 European Natural Gas Assessments

Effective October 31, 2013, Argus announced it is ending the European Natural Gas assessment based on the termination of the UK power trading Electricity Forward Agreement (EFA) contracts. Code PA0002670 PA0002671 PA0002672 Description UK OTC base load EFA month UK OTC base load EFA quarter UK OTC base load EFA season 11

August 2013

Fossil Fuel Markets

Platts to Align European T2 Ethanol Barge Timings

On July 29, 2013, Platts announced it will align its eWindow guidelines for physical T2 Rotterdam Barge European Ethanol Market on Close assessment processes, effective August 1. The aligned times include: Description Last time to register barge price indications Increments Repeatability Final state Bids and offers Extension Time 16:05 London Time

Argus Changes Coking Coal Data Modules

Effective August 12, 2013, Argus announced that its Argus Steel Feedstocks publication will supersede the Argus Coking Coal International publication, though no PA codes will be stopped. The DCCI data module will be discontinued, but its PA codes will continue via the DSteelFeedstocks data module. For details of the coal products affected, see the full list here.

Maximum EUR1/cu m, a min. of every 20 seconds Maximum of 30 seconds to repeat a bid or offer following a trade None Changed in price up until the close of the assessment 60 seconds triggered by a change in bid or offer price or repeat bid/offer in the last 20 seconds

FERC Improves Oil Pipeline Reporting

On July 18, 2013, Federal Energy Regulatory Commission (FERC) issued a final rule to modify reporting to enhance the ability to monitor oil pipeline costs by both FERC and the public. The modifications apply to the annual FERCjurisdictional interstate oil and refined product pipelines financial reports Page 700 of FERC Form No.6, which provides a simple presentation of a pipelines jurisdictional cost of service. The rule expands the following: Rate Base (line 5), Rate of Return (line 6), Return on Rate Base (line 7), and Income Tax Allowance (line 8).

Platts Adds Global Oil Assessment Commentary

On August 1, 2013, Platts announced that as part of its commitment to market transparency it will be publishing key benchmark assessment rationales for its global oil assessments, effective August 1 in Asia and the U.S. and August 5 in Europe. The rationales can be found in Platts Global Alert and other Platts oil publications. For a full listing of all the affected products, see the full Subscriber Notes here.

Argus Renames Seven U.S. Gasoline Products

Effective August 1, 2013, Argus will rename its seven existing gasoline series to inside duty. The affected products are : Code PA0000905 PA0002338 PA0004376 Old Description Gasoline 87 regular conv NYH Gasoline 83.7 RBOB NYH cargo Gasoline 87 regular conv NYH Wint Supp Gasoline 83.7 RBOB NYH cargo Wint Supp Gasoline 87 regular conv NYH Sum Supp Gasoline 83.7 RBOB NYH cargo Sum Supp Gasoline 83.5 CBOB NYH cargo New Description Gasoline 87 regular conv NYH inside duty Gasoline 83.7 RBOB NYH cargo inside duty Gasoline 87 regular conv NYH inside duty Wint Supp Gasoline 83.7 RBOB NYH cargo inside duty Wint Supp Gasoline 87 regular conv NYH inside duty Sum Supp Gasoline 83.7 RBOB NYH cargo inside duty Sum Supp Gasoline 83.5 CBOB NYH cargo inside duty

Platts to Revise NWE Aromatics Assessed Timings

On August 9, 2013, Platts proposed to revise the Northwest European aromatics, styrene, and methanol assessed timings from a rolling 3-30 day window to a 5-30 day rolling window (both inclusive and from the publication date). The assessments affected will be for NWE benzene, toluene, mixed xylenes, orthoxylene, paraxylene, styrene, and methanol. All comments and feedback can be sent by October 11 to petchems@platts.com, with a CC to pricegroup@platts.com.

PA0004383

PA0004395

PA0004402

PA0008601

12

August 2013

Agriculture, Forestry and Metal Markets

CME Launches Short-Dated New Crop Options

On July 30, 2013, CME announced the launch of Short-Dated New Crop Options on KC Hard Red Winter (HRW) Wheat futures. This will allow price risk management during the hard red winter wheat growing season. Trading will commence on the Chicago trading floor and CME Globex will effective August 26, 2013 and will be subject to KCBT rules and regulations. The KC HRW Wheat Short-Dated New Crop Options will be offered in the July 2014 futures with earlier expiring contract months listed (December 2013, March 2014, and May 2014).

Platts to Add Daily 58% Fe Iron Ore Assessment

On July 3, 2013, Platts announced its proposal to add a daily 58% Fe iron ore price assessment that would reflect low alumina 58% Fe spot trades with 8% moisture, 5.5% silica, 1.5% alumina, 0.05% phosphorus, and 0.02% sulfur. The assessment would cover CFR Main Chinese ports that are normalized in Qingdao, at $/dry mt, with a minimum cargo size of 35,000 mt delivered two to either weeks forward from date of publication.

CME Adds Aussie Dollar Wheat Swap Contracts

On July 28, 2013, CME Group announced the addition of two new wheat swap contracts that are denominated in Australian dollars (AUD): AUD Chicago Soft Red Winter Wheat Swap (CAW) and AUD Kansas City Hard Red Winter Wheat Swap (KAW). All customer positions must be held in Customer Cleared Swaps (COTC) not through 4d orders from the CFTC and are subject to LSOC.

Platts to Add US West Coast Ferrous Scrap Assessment

On July 19, 2013, Platts announced its proposal to add an assessment for the U.S. West Coast ferrous scrap export market effective September 3, which reflects the containerized heavy melting scrap I/II (80:20 blend) price at the Port of Los Angeles on a free alongside ship (FAS) basis. The assessment specifications are based on the ISRI classification (equivalent 200 and 204), and are normalized to 1,000 mt, with a 100% payment due on delivery. The graph below shows how prices have changed for scrap metal between 1981 and 2013.

CME Launches Aluminum Midwest Premium Contracts

On August 8, 2013, CME Group announced the first Aluminum Midwest (MW) U.S. Transaction Premium Platts (25MT) Futures (AUP) contracts were traded. The aluminum swap futures contracts are a complementary product to the LME aluminum contract, originally created to cover freight from Baltimore to the Midwest. The premium now incorporates supply and demand for the North American market and will improve aluminum consumer price risk management. Data Source: CANSIM | Graph created in ZEMA.

Platts to Add Asian Engelhard Precious Metals

On July 16, 2013, Platts announced its proposal to add price assessments for Asian Engelhard Industrial Bullion (AEIB), including platinum, rhodium, palladium, iridium, and ruthenium, as of September 2. These assessments will be published at 1:15 p.m./1315 Singapore/Hong Kong time (0515 GMT).

Platts to End Gold, Silver JM Assessments

On July 16, 2013, Platts announced its proposal to end price assessments for Johnson Mattheys Asian morning gold and silver price assessments, effective October 1. The assessment is published as PMA 072.

13

August 2013

Agriculture, Forestry and Metal Markets

Code PA0012213 PA0012214 Old Description Aromatic 150 solvent fob Northeast Aromatic 150 solvent fob Canada East Toluene solvent fob USGC Toluene solvent fob Midwest Toluene solvent fob Northeast Toluene solvent fob Southeast Toluene solvent fob West Coast Xylenes solvent fob USGC Xylenes solvent fob Midwest Xylenes solvent fob Northeast Xylenes solvent fob Southeast Xylenes solvent fob West Coast New Description Aromatic 150 solvent fob US northeast Aromatic 150 solvent fob Canada East Toluene solvent fob US Gulf coast Toluene solvent fob US midcontinent Toluene solvent fob US northeast Toluene solvent fob US southeast Toluene solvent fob US west coast Xylenes solvent fob US Gulf coast Xylenes solvent fob US midcontinent Xylenes solvent fob US northeast Xylenes solvent fob US southeast Xylenes solvent fob US west coast

Platts to End Three Iron Ore Quarterly Price Assessments

On August 12, 2013, Platts announced it will end three of its quarterly iron ore price assessments, CVRD/Vale Carajas Fines CJF 66% Fe Jap Brazil Exp FOB Ponta Da Madeira (SB01096), CVRD/Vale Standard Sinter Feed 65% Fe Eur Brazil Exp FOB Tubarao (SB01097), and BHPB Mt Newman Hi-Grd 63% Fe Fines Jap Aus Exp FOB W Aus Port (SB01030), effective October 2. With the last publication of this quarterly data being October 1, the prices will no longer be published in Stell Business Briefing, Steel Markets Daily, The Briefing, the Price Analyzer or in Platts Market Data.

PA0012215 PA0012216 PA0012217 PA0012218 PA0012219

Platts to Change JM Precious Metal Assessments

On July 16, 2013, Platts announced its proposal to change Asian price assessments for Johnson Matthey as follows: Platts Metals Alert Page 072 with prices for platinum, palladium, and rhodium to update twice daily at 0830 Singapore/Hong Kong time (0030 GMT) and 1400 Singapore/Hong Kong time (0600 GMT). This is a change from once daily at 1500 Singapore time (0700 GMT).

PA0012220 PA0012221 PA0012222 PA0012223 PA0012224

Argus Changes Aromatic Solvents Series Descriptions

Effective August 5, 2013, Argus announced it is changing the descriptions in the Argus Dewitt Aromatic Solvents series. The affected products are as follows: Code PA0012207 PA0012208 PA0012209 PA0012210 PA0012211 PA0012212 Old Description Aromatic 100 solvent fob USGC Aromatic 100 solvent fob Midwest Aromatic 100 solvent fob Northeast Aromatic 100 solvent fob Canada East Aromatic 150 solvent fob USGC Aromatic 150 solvent fob Midwest New Description Aromatic 100 solvent fob US Gulf coast Aromatic 100 solvent fob US midcontinent Aromatic 100 solvent fob US northeast Aromatic 100 solvent fob Canada east Aromatic 150 solvent fob US Gulf coast Aromatic 150 solvent fob US midcontinent

14

August 2013

Environmental Markets and Weather Services

EIA Adds Hurricane Information Web Tool

On July 9, 2013, the U.S. Energy Information Administration (EIA) announced the launch of its interactive maps with 20 layers that showcase the countrys resources, energy infrastructure and National Hurricane Center real-time data feeds. The map allows industry members and the general public access to information to better understand the impact of an impending storm. The maps can be found at http://www.eia.gov/special/disruptions/.

MDA to Provide Space Shuttle Communications

On July 29, 2013, MacDonald, Dettwiler and Associates Ltd. (MDA) has announced it will develop an engineering concept solution to provide on-board communications for signal processing for NASAs Sierra Nevada Corporations Dream Chaser crew transportation vehicle. These vehicles provide reusable spacecraft used to transport cargo and crew to the International Space Station and Earth.

Platts Adds 2014 RIN Assessments

On July 1, 2013, Platts announced it had launched the 2014 RIN (next-year) assessments that reflect a January 2014 transfer timing with the last trading day being December of that year. Going forward, the RINs will be added on the first business day of July of the prior year.

SSL to Provide Satellite for Eutelsat

On July 30, 2013, Space Systems/Loral (SSL) announced it will provide a multi-mission satellite to Eutelsat, one of the worlds leading satellite operators. The satellite, EUTELSAT 65 West A, will provide broadcast and broadband services in Brazil and across Latin America. Space Systems/Loral (SSL) is a leading provider of commercial satellites.

MDA Adds RADARSAT-2 Station in Bali

On July 17, 2013, MacDonald, Dettwiler and Associates Ltd. (MDA) announced a multi-million dollar contract with Collecte Localisation Satellites (CLS), France, to provide a RADARSAT-2 ground station in Bali, Indonesia, and three years of RADARSAT information. This new service will provide maritime information solutions to help detect marine pollution and illegal fishing activity.

SSL to Provide Satellite for Intelsat

On July 23, 2013, Space Systems/Loral (SSL) announced it will provide a communications satellite to Intelsat S.A., a leading th satellite service provider. Intelsat 34 is the 50 satellite SSL will provide to Intelsat and it covers the Western hemisphere, which provides broadband for North Atlantic routes and services to its Latin American media customers.

MDA to Provide WorldView Satellite Ground Station

On July 22, 2013, MacDonald, Dettwiler and Associates Ltd. (MDA) announced it will provide an international Direct Access Facility ground station for DigitalGlobe to collect, task, and process images sent from the WorldView-1 and WorldView-2 satelites. This contract comes on the heels of other similar orders MDA has received from DigitalGlobe and will support Direct Access Program business line growth.

SSL Awarded U.S. Air Force Contract Option

On August 8, 2013, Space Systems/Loral (SSL) announced it was awarded a contract option to continue to develop and demonstrate next generation design concepts for Protected Military Satellite Communications (MILSATCOM) with the U.S. Air Force Space and Missile Systems Centre (SMC). SSL is using its previous experience in broadband, mobile communications, and high-definition video broadcasting to develop cost-effective SATCOM solutions for platforms like remote-piloted aircraft and ground command-and-control vehicles.

15

August 2013

Environmental Markets and Weather Services

NOAA Weather Service Doubles Computing Capacity

On July 29, 2013, the National Oceanic and Atmospheric Administrations (NOAA) National Weather Service announced it had more than doubled its computing capacity in order to increase the accuracy of its forecasts and models, with a 213 trillion calculation per second capacity. The supercomputer improvements will also help to increase the scientific data and insights, the NOAA can provide to government officials, businesses, and communities.

EPA Launches National Stormwater Calculator

On July 24, 2013, the U.S. Environmental Protection Agency (EPA) announced the launch of its National Stormwater Calculator aimed at helping developers, owners, landscapers, property owners, and urban planners make land-use decisions in accordance to President Obamas Climate Action Plan. Stormwater runoff can affect drinking water and ecosystems, so preventing the runoff can greatly impact peoples health and the environment. The graph below shows the relative accuracy of MDA EarthSats precipitation forecasts this spring, calculated as the difference between forecasted and actual precipitation.

NYSE Joins UN Sustainable Exchange Initiative

On July 24, 2013, NYSE Euronext (NYX) announced it joined the United Nations Sustainable Stock Exchanges (SSE) initiative in order to enhance transparency and encourage responsible approaches to investment. NYSE has been named to several sustainability indexes and has achieved a carbonneutral status every year since 2010.

EPA to Launch Clean Water Act E-Reporting

On July 31, 2013, the U.S. Environmental Protection Agency (EPA) proposed to launch a modern e-reporting process for municipalities, facilities, and industries that submit Clean Water Act (CWA) data and information. The EPA estimates that the new paperless rule, when fully implemented, will save the 46 states and the Virgin Island Territory that are part of the National Pollutant Discharge Elimination System (NPDES) program $29 million each year. Data Source: MDA EarthSat | Graph created in ZEMA.

EPA Sets 2013 Renewable Fuel Standards

On August 6, 2013, the U.S. Environmental Protection Agency (EPA) announced that in an effort to increase energy security and lower carbon pollution, it had finalized its Congressestablished Renewable Fuel Standard (RFS) programs 2013 fuel standards for four fuel categories. The new standards and volumes require renewable fuels (16.55 billion gallons) blended into the U.S. fuel supply. The specific requirements include biomass-based diesel (1.28 billion gallons; 1.13%), cellulosic biofuels (6.00 million gallons; 0.004%, and advanced biofuels (2.75 billion gallons; 1.62%).

EPA Adds Environmental Solutions Web Tool

On July 1, 2013, the U.S. Environmental Protection Agency (EPA) and the Department of Commerces International Trade Administration (ITA) announced the launch of their jointventure U.S. Environmental Solutions Toolkit, an online interactive reference tool that connects EPA environmental analysis with U.S. regulatory structures to national and international audiences. The toolkit is part of the EPAs export promotion strategy to increase human health protection efforts worldwide, while increasing economic activity and job growth in the U.S.

16

August 2013

Environmental Markets and Weather Services

AccuWeather Launches 45-Day Forecast

On August 5, 2013, AccuWeather announced the launch of its 45-Day Forecast, the only free, detailed, 45-day long-range forecasting available. The 45-Day Forecast, in addition to its 7-, 10-, 15- and 25-day forecasts, offers comprehensive weather information, including high and low temperatures, sky conditions, wind speed, precipitation type and amounts UV index, and more.

ACR Issues First California Registry Offset Credits

On August 5, 2013, the American Carbon Registry (ACR) announced it had issued the first California compliance offset program Registry Offset Credits (ROCs), which can be transitioned to Air Resource Board (ARB) compliance offset credits and used to help California entities meet emissions reductions targets and obligations. Environmental Credit Corp. received the first issuance with 300,000 ROCs due to its ozone depleting substances (ODS) destruction project.

Dual Adds Real-time Cockpit Weather, Flight Planning

On August 8, 2013, Dual Electronics announced its XGPS170 GPS + ADS-B Receiver would now be compatible with WSIs Pilotbrief Optima iPad app, which means the in-flight weather and traffic data from Dual will integrate seamlessly with the WSI app to provide to pilots real-time coverage of the weather from pre-flight to final approach. The app also delivers high-definition actionable weather, integrated flight plans and charts.

17

August 2013

FX, Interest Rates, Credit and Equity Indexes

CDSClear clearing business. This approval marks the first time that European clients will be able to clear CDS indexes, which improves portability conditions by asset tagging and streamlines legal documentation. Further, LCH.Clearnet expects to offer single name CDS sometime soon.

ICE Completes NYSE Liffe Derivatives Transition

On July 2, 2013, NYSE Liffe, a subsidiary of IntercontinentalExchange (ICE) and the derivatives division of NYSE Euronext and ICE Clear Europe, announced it had completed the clearing transition of its derivatives market to ICE Clear Europe. The transition of 43 member firms with 75 million contract sides, over 1300 products and a U.S. $11.17 billion margin occurred on July 1. ICE Energy and NYSE Liffe Futures and Options combined guaranty fund is U.S. $1.2 billion.

BVC to Add Family of Indexes

On June 27, 2013, the Columbian Securities Exchange (BVC) launched a new family of indexes that will track fixed income, equity, and money markets based on the most important BVC-traded assets and will help to increase the visibility of Columbian securities abroad. The COLEQTY, COLCAP and COLSC indexes will track the equity market, COLTES Fixed Rate, COLTES Short-Term, COLTES Long-Term, and COLTES UVR will cover the fixed-income market, and COLIBR the money market (based on the accumulated performance of the IBR variation that is published by the Central Bank). To view the calculations for these new indexes, see the BVC methodology documents here.

LCH.Clearnet Extends Interest Rate Swap Clearing to Aussie Banks

On July 2, 2013, LCH.Clearnet Limited announced it had received approval from the Australian government to extend its clearing and settlement facility license to include clearing of interest rate swaps for Australian banks. This change allows Australian banks to participate beside international clearing members, mitigate counterparty risk, and inefficiencies as SwapClear members. SwapClear is the leading provider of Australian dollar interest rate swaps and clears over 90% of globally cleared interest rate swaps.

CME, trueEX to Deliver New Credit Spread Futures

On July 18, 2013, the CME Group and trueEX, LLC, announced that they are building trueEX Credit Spread Futures contracts, which are based on S&P Credit Spread indexes and would be distributed on the global futures markets in CME Globex. The products will include the S&P 150 Investment Grade Credit Spread Index (a combination of the S&P 120 Credit Spread Corporate Index and the S&P 30 Credit Spread Financials Index). CME Clearing will also provide the clearing for these contracts.

LCH.Clearnet To Clear US Credit Default Swaps

On July 2, 2013, LCH.Clearnet Limited announced it had received permission to provide clearing of credit default swaps (CDS) for U.S. clearing members through its CDSClear clearing business. Proprietary CDS index trades are now able to be cleared through the service, adding greater institution choices and liquidity in the market. The registration as a derivatives clearing organization is still pending approval from the US Commodity Futures Trading Commission, and will be the third OTC derivative asset class to LCH.Clearnets OTC derivative clearing service, in addition to interest rate and forex derivatives.

HKEx Adds CES 120 Index Futures

On July 24, 2013, Hong Kong Exchanges and Clearing Limited (HKEx) announced that it in order to expand the exchanges Mainland China products, HKEx will start trading CES China 120 Index (CES 120) futures, effective August 12. The CES 120 was created to track the performance of Mainland China and Hong Kongs most liquid and large stocks by the HKEx, the Shanghai Stock Exchange and the Shenzhen Stock Exchange. These single exchange-traded futures contracts are the first exchange-listed products that provide simultaneous exposure to Chinese and Hong Kong markets and which can be used for trading or hedging. For full futures specifications, view the HKEx News Release here.

LCH.Clearnet To Clear EU Credit Default Swaps

On July 19, 2013, LCH.Clearnet Limited announced it had received permission to provide clearing of credit default swaps (CDS) for European clearing members through its

18

August 2013

FX, Interest Rates, Credit and Equity Indexes

HKEx Adds Liquidity Provider to CES 120 Futures

On August 13, 2013, Hong Kong Exchanges and Clearing Limited (HKEx) announced it had registered Getco Asia Pte Ltd as its fourth Liquidity Provider (LP) for the CES 120 Futures products based on the CES China 120 Index. The other three registered LPs include IMC Asia Pacific Ltd, Optiver Trading Hong Kong Ltd, and Newedge Financial Hong Kong Ltd. The LPs must provide continuous two-sided quotes for 5 contracts (at least) in the first two contract months and have a maximum bid-ask spread of 0.5% over 70% of all trading hours.

TAG Immobilien AG Adds Corporate Bond to FSE

On July 22, 2013, TAG Immobilien AG announced the launch of its prime standard corporate bond (ISIN: XS0954227210) on the Frankfurt Stock Exchange (FSE), effective August 7. Early subscription of the bond was released until August 2. The bond has a 200 million volume, an interest rate of 3% at least, a nominal denomination of 1,000, and runs until August 7, 2018.

REALITES Launches Initial Bond Offer on NYSE

On July 9, 2013, NYSE Euronext (NYX) announced a 7.3 million bond issue on its NYSE Alternext platform in Paris for French real estate promoter REALITES, as the first time for an unlisted company to use an Initial Bond Offer (IBO). The bonds are priced at a nominal 100, earn 9% fixed interest annually for six years, and hold a BB rating.

GFI Group Applies For CFTC Swap Execution Facility

On July 22, 2013, GFI Group Inc. announced it had filed a Commodity Futures Trading Commission (CFTC) application to become an SEF-rule approved multi-asset Swap Execution Facility (SEF), pursuant to the Dodd-Frank Act. GFI currently operates trading swap marketplaces for fixed income, financial, equity, and commodity asset classes, as wells as operating the GFI CreditMatch, EnergyMatch, RatesMatch, and GFI ForexMatch trading platforms.

NYSE Adds AEX Ext Index

On July 31, 2013, NYSE Euronext (NYX) announced the launch of its AEX Ext index, which tracks the AEX-Index market benchmark with extended calculation and distribution hours (8:00 am to 6:30 pm CET, as opposed to the AEX-Indexs 9:00 am to 5:30 pm CET). Traders will also be able to take premarket and after-hour session positions on the regulated European market.

ISE, SecuredGrowth Launch ETP Indexes

On July 22, 2013, the International Securities Exchange (ISE) and SecuredGrowth Quantitative Research Inc. (SGQR) announced the launch the SGQR SPY SecuredGrowth Index, one of a new set of indexes that combine SecuredGrowth proprietary processes with Exchange-Traded Products (ETPs) to enhance the return of portfolios or benchmark indexes in a transparent, liquid, and low-risk manner. The first index released adds a unique methodology and a synthetic yield that incorporates a portfolio of U.S. Government-issued Agency and Treasury notes and investment-grade domestic corporate bonds, which are overlaid on the SPDR S&P 500 ETF.

CFTC Announces iTraxx CDS Index Mandatory Clearing

On July 25, 2013, the Commodity Futures Trading Commission (CFTC) announced the second phase of Category 2 Entities required clearing for iTraxx credit default swap (CDS) indexes, effective July 25. Category 2 Entities (like commodity pools, persons involved in banking or financial matters, and private funds) are required to clear based on the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Category 1 Entities began required clearing on April 26, and all other entities will be required to be cleared by October 23.

19

August 2013

FX, Interest Rates, Credit and Equity Indexes

Xetra Gains Three iShares Bond Index ETFs

On July 29, 2013, Deutsche Borse announced the addition of three iShares bond index ETFs to its XTF segment, including iShares Euro Corporate Bond Financials UCITS ETF (DE00A1W0MX4), iShares Global Corporate Bond EUR Hedged UCITS ETF (DE000A1W2KG9), and iShares J.P. Morgan $ EM Bond EUR Hedged UCITS ETF (DE000A1W0PN8). The new bonds provide investors with access to euro corporate bonds in the banking, insurance and finance sectors; fixedincome corporate bonds with access to industrialized and emerging market countries; and, U.S. dollar government bonds and quasi-government bonds from emerging markets respectively. For full details on the three new iShares bond index ETFs, see the full product details here.

AVANA Launches Actively Managed Equity ETF

On August 7, 2013, Xetra announced that new issuer AVANA II Investment AG added an actively managed equity ETF to the exchange. The new fund allows investors to participate in the master fund Emerging Markets Equity Fund Anteilsklasse I USD performance (up to 85%) with the assets invested in derivatives and bank balances (up to 15%). The master fund tracks the MSCI Emerging Markets Index that represents over 21 emerging market country stock corporations. ISIN DE000A1JFU03 Description AVANA Emerging Markets Equity UCITS ETF Feeder

Javelin Files Application to Trade Interest Rate Swaps

On August 5, 2013, Javelin announced it had filed a CFTC application for its Swap Execution Facility (SEF) to be allowed to trade interest rate swaps. Javelin SEF LLC, if approved, will offer live and actionable prices through two execution methodologies: Central Limit Order Book (CLOB) and Request For Quote (RFQ).

DGCX Launches First Indian Equity Index Futures

On July 4, 2013, Dubai Gold and Commodities Exchange (DGCX) launched the first Indian equity index futures to be listed on a Middle East and North Africa (MENA) region exchange, SENSEX Futures. Effective July 5, the new contract is based on the S&P BSE SENSEX (a blue-chip index of the Bombay Stock Exchange (BSE) and will be cleared on the Dubai Commodities Clearing Corporation (DCCC).

Russell, NYSE Enhance RussellTick

On August 7, 2013, Russell Indexes and NYSE Euronext announced new enhancements to their index feed RussellTick for intra-day, real-time values of the Russell global index family. The enhancements cover in-house index calculations, as Russell Indexes starts handling index calculations for RussellTick, effective August 15, offering greater index choices, and faster, more frequent information updates. Another enhancement includes a more flexible pricing model, which will be in effect as of January 1, 2014, and which will allow RussellTick customers to have a more customized, targeted, and competitive pricing for their commercial commitments.

20

August 2013

Other Matters

IHS Acquires Car Info Provider R.L. Polk & Co.

On July 16, 2013, IHS announced that it had completed its acquisition of automotive information provider R.L. Polk & Co. Polk and CARFAX, which provide actionable data on vehicle market intelligence and history, analytics and tools, are two divisions of R.L. Polk & Co. and now will increase IHS's global database.

ISE To Launch Gemini Options Exchange

On July 29, 2013, the International Securities Exchange (ISE) announced it had received approval from the SEC for it Form 1 ISE Gemini application to become ISEs second options exchange, effective August 5. ISE Gemini has 15 approved market makers, including Competitive Market Makers (CMMs), Primary Market Makers (PMMs), and Electronic Access Members (EAMs). All non-transactional fees have been waived until the first day of 2014.

IHS Launches Two Cloud Versions of Goldfire

On July 18, 2013, IHS launched two new cloud versions of its Goldfire platform, IHS Goldfire Cloud and IHS Standards Expert with Goldfire, which provide a single point-of-entry to critical information to help scientists, engineers, researchers and more make better informed decisions. The new cloud versions include patented semantic search technology, access to 90 million technical and scientific documents (including patents, IHS content, third-party content and Deep Web), ability to index and research websites, social media or RSS feeds, over 70 concept lenses, and strategy insights.

NYSE Liffe Launches TKG Options

On July 10, 2013, NYSE Liffe announced the launch of its equity options (symbol: TKG), based on the shares of Electronic & Electrical Equipment company TKH Group N.V. The American-style options build off of the AMX companies equity option classes, expire on the contract months third Friday, represent 100 shares in TKH, are cleared through LC.CLearnet SA, and have initial maturities of one-to-nine months.

US and EU Reach Derivatives Global Trade Deal

On July 11, 2013, the Commodity Futures Trading Commission (CFTC) and the European Union (EU) regulators announced that they had reached a deal allowing crossborder rules for derivative trades, a $633 trillion market globally. The new deal tries to equalize the rules on trading globally and allows U.S. banks in Europe to choose to comply with EU rules rather than U.S. CFTC rules, which though not exactly ideal for the CFTC, was a better option than overlapping systems with incompatible rules and regulations.

NYSE Liffe to List Digital Security Options

On July 22, 2013, NYSE Liffe announced the launch of its American-style digital security options (symbol: GMT), based on the shares of Gemalto N.V. on the Amsterdam derivatives market, effective July 25. Gemalto belongs to the AEX-Index, and with the addition of these options, NYSE now offers options on every company in the index. The options expire on the contract months third Friday, represent 100 shares in Gemalto, are cleared through LC.CLearnet SA, and have initial maturities of one, two, three, six, nine, and 12 months.

MDA to Provide Tech Solutions for Boeing

On July 25, 2013, MacDonald, Dettwiler and Associates Ltd. (MDA) has announced it will provide four advanced technology solutions for The Boeing Company and its 702HP communication satellite. This solution is based off of MDAs history of being a global communications and information provider for commercial and government organizations.

NYSE Liffe to List Belgium Postal Service Options

On July 26, 2013, NYSE Liffe announced the launch of its American-style postal service options (symbol: BPO), based on the shares of bpost (Belgiums leading postal operator) on the Brussels derivatives market, effective July 26. The options expire on the contract months third Friday, represent 100 shares in Gemalto, are cleared through LC.CLearnet SA, and have initial maturities of one to 12 months.

21

August 2013

Other Matters

Grand City Properties Adds Bond to Frankfurt Exchange

On July 10, 2013, Grand City Properties S.A. announced the launch of its corporate bond (ISIN: XS0951839991) on the Frankfurt Stock Exchange (FSE), effective July 24. Early subscription of the bond was released until July 19. The bond has a 100 million volume, an interest rate of 6.25%, a nominal denomination of 1,000, and runs until June 3, 2020.

HKEx Adds Five Stock Option Classes

On July 22, 2013, Hong Kong Exchanges and Clearing Limited (HKEx) announced that it will add five stock option classes on August 5, including China Minshen Banking, Great Wall Motor, Lenovo, MGM China, and Peoples Insurance Company of China. The expiry months available include, August, September, October, November, and December of 2013 and March and June of 2014. Stock China Minshen Banking Corp. Ltd. Great Wall Motor Co. Ltd. Lenovo Group Ltd. MGM China Holdings Ltd. The Peoples Insurance Co. (Group) of China Ltd. Code 1988 2333 992 2282 1339 Size (Shares) 2500 500 2000 400 5000

Deutsche Borse, Liquidnet Offer German Block Trading

On July 10, 2013, Deutsche Borse and Liquidnet announced the launch of a block trading service for the Xetra MidPoint trading platform. Liquidnet will be the Block Agent for the new trading model, which will settle all German trades, including small- and mid-cap deals and the DAX, MDAX, TecDAX, and SDAX indexes. The platform links the 240 Xetra members to over 700 of Liquidnets asset management firms.

For a full listing of the stock options classes available in HKEx, view the HKEx News Release here.

Eurex Adds Options for French Govt Bond Futures

On July 22, 2013, Eurex Exchange announced it will launch French Government notional long-term bond futures options, effective September 10. The options will trade from 8:00 am to 5:15 pm CET, have a coupon of 6%, a maturity of 8.5 to 10.5 years, a tick size measured in points with a value of 10 euros.

DOE Secretary Dedicates Supercomputer to NET Lab

On July 29, 2013, the Department of Energy announced the dedication of a supercomputer to the National Energy Technology Laboratory (NETL) by Secretary Moniz. The supercomputer runs at a trillion floating-point operations per second (503 TFlops) and enables complex analysis and model simulations for advanced energy, engineering, and environmental technology development and research. The efficiency increase is estimated to save $450,000 annually.

Bahrain Bourse Boosts Engine with NASDAQ Tech

On July 9, 2013, NASDAQ OMX announced that it will be upgrading the Bahrain Bourse (BHB) trading platform with its NASDAQ OMX Horizon platform, powered by X-stream technology. The technology enables BHB with a widely deployed high-end, multi-asset system that complies with all the international standards, and is used by 25 other exchanges globally.

Tradition Launches Volatility Futures Platform

On July 1, 2013, Tradition announced the launch of a new hybrid (voice and electronic) platform for the negotiation and trading of realized volatility futures, Volatis, with variance pay-offs cleared and listed on the CME Group exchanges. The new platform was designed to help improve liquidity, provide greater access to the volatility market, and increase pre- and post-trade transparency. It will offer block trades of cash settled futures contracts indications of NYMEX WTI crude, NYMEX natural gas, NYMEX Brent crude, COMEX gold and silver, and CME currencies (including EUR/USD, GBP/USD, AUD/USD and USD/JPY).

22

August 2013

Other Matters

NASDAQ OMX and NGX Create US Energy Alliance

On July 9, 2013, NASDAQ OMX Commodities and the Natural Gas Exchange Inc. (NGX) announced an alliance of the U.S. physical energy entities of NASDAQ OMX Commodities Clearing Company (NOCC) and NGX. NGX will list and clear the physical power futures contracts, based on its existing U.S. physical natural gas futures contracts, effective September. The alliance will enable traders to transact physical energy trades in the U.S., maximize collateral efficiency, and increase transparency and market liquidity between Canada and the U.S.

HKEx, Hubei Financial Services Office Sign MOU

On July 9, 2013, the Hong Kong Exchanges and Clearing Limited (HKEx) and the Hubei Provinces Financial Services Office (FSO) announced a memorandum of understanding (MOU) on the sharing of information, which enables there to be greater business cooperation between the City of Hong Kong and the Hubei Province.

23

August 2013

Monthly Market Analysis

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

Crude Oil Brent vs WTI: Forward Curve (NYMEX)

On the New York Mercantile Exchange (NYMEX), NYMEX Crude Oil prices for Brent and WTI were on the rise in August following the unrest in the Middle East and raised concern that oil shipments may be at risk. Also, global oil inventories have tightened in the past two months. In the first half of the month, U.S. refinery rates fell while the oil prices received futher support from an unusally strong demand. The spread between the two benchmarks almost reached toa $2 USD/bbl premium for Texas light sweet, although many factors hint that this will not last for long. In August, the NYMEX Prompt-Month Contract for WTI averaged around $106 USD/bbl, whereas Brent was $104 USD/bbl. In mid-August, CME Group announced recordbreaking trading volume for its NYMEX crude oil contracts. This is the first time NYMEX Brent surpassed 100,000 contracts, while open interest for NYMEX Light Sweet Crude Oil is at record highs of over 1.9 million contracts. In the U.S. market, the Seaway pipeline carrying 400,000 barrels a day from Cushing, Oklahoma, to refineries on the Gulf Coast was shut for than 12 hours after decreased power demand was observed at all pumping stations. In the second half of the month, there were signs of weakening demand after a Federal Reserve meeting that suggested the U.S. market doesnt have any forward momentum . On the other hand, Brent was supported by supply disruptions and geopolitical problems in the Middle East. Distributions in Libyan oil supply, the ongoing problems in Iraq, and OPEC outages since the beginning of the summer taking 33 million barrels off the market all led to rising prices for the European benchmark.

On the New York Mercantile Exchange (NYMEX), Brent-WTI futures tumbled 2% as the September contract expired. For delivery in September, Brent traded at $108 USD/bbl, whereas WTI settled around $105 USD/bbl for the same month delivery a premium of $3 USD/bbl for the European benchmark. Minutes from the Feds meeting suggested that Commodity markets (including oil) are down on expectations that some kind of tapering is coming. The Hawthorn crude oil pipeline (having the capacity of 90,000 barrels-a-day) is back in action after being shut down for a year. In addition, a Carribean lowpressure system that threatened to grow into a tropical storm (Erin) that wouldve disrupted the U.S. supply from the Gulf of Mexico dissipated. And finally, weather forecasts by Accuweather revealed that there are no major storms expected in the next few months. Brent is expected to remain on high in the near future as the disruptions in Libyan oil supplies have lasted longer than expected without any immediate solution to bring stability to the area, including the violence in Egypt that is currently threatening the normal operation of the Suez Canal and the Suez-Mediterranean Pipeline.

24
*Graphs created with ZEMA

August 2013

Monthly Market Analysis

North American Natural Gas Spot Prices (ICE)

Henry Hub Natural Gas Forward Curve (ICE)

On the Intercontinental Exchange (ICE), North American natural gas spot prices remained mostly flat with minor fluctuations. As the graph shows, average gas prices dropped in North America this month compared to July in all four major hubs: Chicago Citygates, Henry Hub, New York Transco Zone 6, and TransCanada interconnect in Iroquois, Ontario. By the end of the fourth week of August, monthly average spot prices for North American natural gas fell by at least $0.30 USD/MMBtu in all the major hubs compared to the month before. For the week ending August 21, 2013, in EIA s Natural Gas Weekly Update Bentek Energy writes that due to the cooler weather during the first 21 days of August, the amount of power burn reduced to 27.9 billion cubic feet per day (Bcf/d), which is 4.8% below the 2008-12 average for the same period. According to Benteks estimates in the update, consumption in all sectors declined with the power sector falling most noticeably by 8.4%. Power generation accounts for 32% of U.S. gas demand, according to EIA.

On the Intercontinental Exchange (ICE), futures prices for Henry Hub Natural Gas continued their downward spiral. The future prices for the next 12 months fell on average by $0.17 USD/MMbtu in August compared to July. In comparison to July 2013, the largest drop between the ICE natural gas monthly futures happened in September, where the futures declined by 7%. This is due to revisions to the forecasts showing normal or cooler-than-average weather in September.

*Graphs created with ZEMA

25

August 2013

Monthly Market Analysis

Actual Daily Temperature (AccuWeather)

Electricity Day-Ahead Prices (ICE)

In August, the overall temperature dropped in the cities of Sacramento, Chicago, Raleigh, and New York, which signals that the hottest days of summer have passed. This month, Raleigh experienced the highest temperature fluctuations. The temperature reached above 33C in the middle of the month followed by the three declining days, which dropped the city down to 19C. Then, the temperature began climbing back up, eventually reaching 29C by August 22.

As unusually mild weather reduced the need to use electricity, power prices in most North American cities slid in August. The prices headed lower on PJM North, dropping from $54 USD/MWh to $47 USD/MWh, as well as on ISO New England, dropping from $64 USD/MWh to $40 USD/MWh, and on NYISO, dropping from $78 USD/MWh to $43 USD/MWh. Similarly, day-ahead power prices at Californias SP15, which covers Los Angeles and San Diego, dropped by $7 USD/MWh this month compared to July. Due to the limited cooling demand, spot power at benchmark hubs in the East Coast are close to near record lows for this time of the year.

Actual Monthly Temperature (AccuWeather)

Analyzing the monthly average of July to August 2013, the temperature dropped from 24C to 22C in Sacramento, 26C to 23C in Chicago, 30C to 27C in Raleigh, and from 31C to 24C in the Big Apple.

*Graphs created with ZEMA

26

August 2013

News from Data Vendors

Data Source
Petroleum Planning & Analysis Cell Petroleum Planning & Analysis Cell Petroleum Planning & Analysis Cell Petroleum Planning & Analysis Cell Prebon Reuters Reuters RIM Intelligence Shanghai Shipping Exchange Southern Power Pool Standard & Poors U.S. Department of the Treasury WSI (The Weather Company) WSI (The Weather Company)

New Data Reports for ZEMA

At ZE, we are continuously growing our data coverage. Our highly flexible data parsers can collect information in any electronic format, from any source and at any frequency. Since the July 2013 edition of DataWatch, we have added several new data reports to ZEMA: Data Source
Association of American Railroads AESO Argus Argus U.S. Bureau of Labor Statistics CAISO CMRI CAISO CMRI CAISO MRTU CAISO MRTU Direct Hedge Enerdata GME (Italian Electricity Market) GME (Italian Electricity Market) GROWMARK Hungarian Power Exchange Link Crude Meteocontrol Meteologica National Energy Board Petroleum Association of Japan

Report
Petroleum Import/Export Quantity Petroleum Consumption

Commodity
Oil

Oil

Petroleum Crude Production

Oil

Petroleum Production

Oil

Report
Weekly Rail Traffic

Commodity
Others

Forward Market Indication Interest Rates - Futures Interest Rates - Spot Japan Domestic Spot Products Shanghai Containerized Freight Index Hourly Generation Mix Dow Jones UBSCI (CIR) Treasury Bill Auction Results

Electricity Currency Currency Energy Freight

Active Operating Reserve Price Report Biomass Markets - Futures Biomass Markets - Spot Consumer Price Index - All Items ISO Commitment Cost Details Market Schedules RTUC DEMAND - CAISO Demand Forecast (7DA) AS - Mileage Calculation Components Fertilizer Settlement Data Gas Storage Roaring Fork Day Ahead Electricity Market Demand Day Ahead Electricity Market Transmission Limits Fertilizer Settlement Data Historical Power Futures Prices Grade Strips German Solar Forecast Wind and Solar Power Generation Forecast Marketable Natural Gas Production in Canada Oil Statistics Weekly

Electricity Others Others Others Electricity Electricity Electricity Electricity Price Gas Electricity

Electricity Stock Others

Trader Daily Forecast (TrailStone) Trader Daily Forecast (TrailStone) (Dynamic Date)

Weather

Weather

Electricity

Price Electricity

ZE Launches Curve Portal

On July 31, 2013, ZE PowerGroup Inc. (ZE) announced the launch of Curve Portal, the latest addition to be released under the comprehensive data management solution ZEMA 4. A sub-product of the powerful Curve Manager workflow engine, Curve Portal is a data entry tool that allows users to enter and upload their daily marks through Microsoft Excel. Curve Portal is designed to streamline and automate daily processes that are commonly performed manually and require security and control. Read the full Curve Portal news release here.

Oil Weather Wind Natural Gas Oil

27

August 2013

News from Data Vendors

Volume in 15-Minute contracts amounted to 307,058 MWh. This is an 18 % increase from previous record in June 2013 (260,668 MWh) and the fifth monthly record in a row. In July, they represented 17.5 % of the volume traded on the German and Swiss Intraday market. *** The European Power Exchange 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 the European power consumption. EPEX SPOT is a European company (Societas Europaea) based in Paris with a branch in Leipzig. 200 TWh were traded on EPEX SPOTs power markets in the first seven months of 2013. Clearing and settlement of all EPEX SPOT transactions are provided by European Commodity Clearing AG (ECC), the clearing house based in Leipzig.

EPEXSPOT: Upsurge in Intraday Cross-Border Trading

New all-time high on Swiss Day-Ahead Fifth record in a row for 15-minute contracts. Paris, 2 August 2013. In July 2013, a total volume of 29.8 TWh was traded on EPEX SPOTs Day-Ahead and Intraday markets (July 2012: 27.8 TWh). In July, cross-border trades on the Intraday markets jumped to 25.7 % of the total Intraday volume (from 14.8 % in June 2013) this is a new record due to the launch of the integrated Swiss Intraday market. The figure is proof of the high interaction of EPEX SPOTs Intraday markets and shows the benefits of European power market integration. Day-Ahead markets In July 2013, power trading on the Day-Ahead auctions on EPEX SPOT accounted for a total of 27,759,196 MWh (July 2012: 26,275,798 MWh) and can be broken down as follows:
Areas Monthly Volume MWh Monthly Volume Previous Year MWh Price Monthly Average (Base/Peak*) Euro/MWh

EEX Spot Market Products to be Migrated on 28 August 2013

Leipzig, Paris, 7August 2013 PEGAS, the natural gas platform formed by cooperation between the European Energy Exchange (EEX) and Powernext, announced that a total volume of 14.8 TWh was traded on the platform and cleared by the European Commodity Clearing (ECC) in July 2013. In the framework of this cooperation which was launched on 29 May 2013, EEX and Powernext combine their natural gas market activities to create a pan-European gas market. Spot Markets Overall, trading volumes on the Spot Markets amounted to 9.8 TWhin July 2013. The German spot markets (market areas GASPOOL and NCG) recorded a volume of 2.7 TWh and in the French spot markets (market areas PEG Nord, PEG Sud, PEG TIGF), the traded volume amounted to 6.2 TWh which represents the best traded volume since the launch of the French spot market in November 2008. The Dutch spot market recorded a volume of 1.0 TWh. On 28 August 2013, the EEX Spot Market products (Dayahead and Within-Day) for the market areas GASPOOL, NCG and TTF will be migrated onto PEGAS on a 24/7 basis, and the corresponding spread products will be activated.

DE/AT 21,503,648 20,080,008 FR 4,363,712 4,589,388 CH 1,891,836 1,606,402 ELIX European Electricity Index * Peak excl. weekend

36.42 / 44.52 34.36 / 44.99 36.24 / 45.34 34.06 / 43.32

The Swiss Day-Ahead market reached a new monthly all-time high with 1,891,836 MWh traded. This is a 6 % increase over the last record (1,791,139 MWh in May 2013). Prices within the French and the German market, both coupled with the Benelux markets within Central Western Europe (CWE), converged 66 % of the time. Intraday markets On the EPEX SPOT Intraday markets, a total volume of 2,020,511 MWh was traded in July 2013 (July 2012: 1,492,900 MWh).
Areas Monthly volume MWh Monthly volume previous year MWh

DE/AT FR CH

1,707,267 230,091 83,153

1,361,962* 130,938 0**

* without Austrian market, which was launched in October 2012 // ** Swiss market launched in June 2013 28

August 2013

Derivatives Markets In July 2013, trading volumes on the Derivatives Markets connected to PEGAS amounted to 5.0 TWh. The German Futures markets (market areas GASPOOL and NCG) recorded a volume of 1.9TWh. In the French PEG Nord area, the traded volume amounted to 2.3 TWh while the TTF Futures market recorded a volume of 0.7 TWh in July. Details on the natural gas volumes and prices are available in the enclosed monthly report. About PEGAS Pan-European Gas Cooperation: 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: www.pegastrading.com About 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: www.eex.com About Powernext: Powernext SA manages complementary, transparent and anonymous energy markets. Powernext Gas Spot and Powernext Gas Futures were launched on 26 November 2008 in order to hedge volume and price risks for natural gas in France and in the Netherlands. In 2011, GRTgaz and Powernext launched the first gas market coupling initiative in Europe between PEGs Nord and Sud. Powernext owns 50% in EPEX SPOT and 20% in EEX Power Derivatives. For more information: www.powernext.com

PEGAS Monthly Figures Report for July 2013 Volumes

Areas Spot Market Derivatives Market

GASPOOL* NCG* PEG Nord PEG Sud PEG TIGF TTF* Total

July 2013 in MWh 1,362,060* 1,316,065* 3,924,400 2,215,070 31,050 992,996* 9,827,183

July 2013 in MWh 835,770 1,041,030 2,380,530 n/a n/a 709,470 4,966,800

* Products not yet tradable on PEGAS. EEX Spot products for the GASPOOL, NCG and TTF market areas will be migrated onto PEGAS on 28 August 2013.

Indices
Spot Market Index Name July 2013 Index Value (min. / max. in EUR/MWh)

GASPOOL NCG PEG Nord

PEG Sud

TTF

EEX Daily Reference Price EEX Daily Reference Price Powernext Gas Spot DAPPowernext Gas Spot EOD Powernext Gas Spot DAPPowernext Gas Spot EOD EEX Daily Reference Price
Index Name

26.049 / 26.550 25.900 / 26.560 26.02 / 27.07 26.07 / 27.35 27.14 / 30.94 26.80 / 30.80 25.000 / 26.600

Derivatives Market

July 2013 Index Value (in EUR/MWh)

Germany

GASPOOL NCG PEG Nord TTF

EGIX (European Gas Index) Monthly Average EGIX Monthly Average EGIX Monthly Average Powernext Gas Futures Monthly Index Powernext Gas Futures Monthly Index

26.360

26.340 26.380 26.35 26.02

29

August 2013

News from Data Vendors

MDA Weather Services Offers Global Forecasting Services

MDA Weather Services offers a variety of data and reports used throughout the energy, agriculture, and weather markets. In addition to providing the basic data products (historical and forecast temperatures, precipitation, etc.) used by traders in these industries worldwide, MDA goes beyond the numbers to provide unique datasets tailored for traders in each industry. Product offerings include: Global Forecasting Capabilities Forecasting at major cities across the world is a commonplace capability for most weather providers. But at MDA, other cities are not ignored. Beyond the temperature forecasts for New York, Chicago, and Dallas, MDA can provide daily weather forecasts for lower populated cities such as Pocatello, Asheville, and Brownsville. Overall, more than 1000 stations across North America have daily forecasts done by a human meteorologist at MDA not just straight computer model data. Many of these forecasts are extended throughout Europe as well. But say you want a forecast for a more obscure location in the US or in another part of the world. MDA can help in those situations as well. Due to the widespread reach of weather model data, a forecast can be created for any point on the globe. Available models include the top performing European (ECMWF) and American (GFS). If one wants a more expansive portfolio of weather data to obtain a more resolute look at energy demand, it can be solved with weather model data. Beyond energy, this is particularly helpful for agricultural interests as weather events in more rural areas are more critical. Many farming areas could be many, many miles away from any sort of weather station but that is no matter with model data availability. Furthermore, model data increases the portfolio of available variables for forecast. It makes it possible to receive forecasts for parameters such as dew point, wind speed/direction, solar radiation, and plenty more. Much of this data is also available on an hourly time scale as well. If interests only revolve around daytime heating or more detail than just a maximum and minimum temperature is required, MDA can forecast for locations by the hour.

30

August 2013

InDepth

Will the Rise of Distributed Energy Spell the End for Traditional Utilities?
By Karen Hung U.S. Electric Utility Revenues Growth (Billion $)
35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 -5.00 -10.00 -15.00

Total

Residential

Commercial

Industrial

Figure 1. Passing phase or permanent digression: Downward trend of year-over-year change in electric utility revenue (Graph created by ZE using data from EIA.) Note that the large drop in 2009 was mainly from the economic recession.

It would be an understatement to say that utilities have been bracing for hard times in the last few years. As can be seen in the graph above, even as the economy has gradually recovered from the global economic recession, U.S. utilities have continued to suffer from decreasing demand, and thus decreasing revenues. This has mainly been the result of a confluence of circumstances: an increase in regulation due to climate change concerns, an influx of new demandside technology, and nowthe rise of distributed energy, also known as distributed generation or distributed energy i resource (DER) systems.

Not to say that distributed energy is new. The term refers generally to the generation of electricity from many smallscale power sources that are usually on-site or in close proximity to end-users, so distributed energy is essentially what people used before transmission grids were built to deliver electricity across wide swathes of North America in th the early part of the 20 century, which made centralized generation more economical. While distributed energy in the 1900s would have referred to st local diesel/coal generators and steam turbines, in the 21 century, it now refers more often to renewable or clean energy generation installations solar photovoltaic (PV) panels, wind turbines, cogeneration plants, and even electric 31

August 2013

InDepth
global temperatures upward and irrevocably destroying our v ecosystem have been big drivers of environmental and vi energy policy in the United States and around the world . This, in combination with cheaper panels and the growth of subsidy programs, has largely driven the growth of rooftop solar installations. Even big-box retailers like Walmart, Costco, Ikea, and Macys have installed surprisingly significant solar power capacity, with Walmart leading the way with vii 65,000 kW of solar power. Policies encouraging investment in energy efficiency and renewable energy development have likewise played a big part in the transition to distributed energy. Between 1990 and 2000, there were around 20 policies that promoted energy efficiency or renewable energy production. From 2000 to 2010, there were over 60 policies, ranging from grants to viii tax credits to stricter standards and codes. Investments in renewable energy development have subsequently accelerated the growth of distributed energy technology. In the last 5 years, for instance, solar panels have gone from large and rigid panels to thinner panels with better conversion efficiency. Just this year, a recyclable solar cell ix was made from cellulose nanocrystal substrates. Wind turbines have also evolved to include a variety of better models, including rooftop turbines and high altitude turbines, and there is ongoing research now in developing micro turbines. Energy efficiency has also improved significantly in the last decade, with developments in various demand-side management technologies, demand response schemes, smarter energy monitoring devices, as well as more energyefficient appliances. And better energy efficiency means less electricity demand that renewable energy needs to supply for, in addition to less demand for conventional energy.

vehicles, which have increased substantially over the last 10 years in North America and around the world. All the same, DER still only makes up a very tiny percentage of electricity generation in the U.S. at the moment. According to the Solar Electric Power Association (SEPA), there were 200,000 distributed solar customers in the U.S. in 2011, which ii accounts for less than 1% of the U.S. retail electricity market. The reason why theyve been dubbed a threat is because 70% of these DER systems are already concentrated within 10 iii utilities , and according to the Solar Energy Industries Association, residential electricity from solar this year has already surpassed residential solar generation in 2008 by iv almost 10 times. A variety of factors also suggest that DER systems may eventually supplant centralized utilities as the default electricity providers.

U.S. Electric Utility Sales Growth (TWh)

150
Electricity Sales Growth

30 25 20 15 10 5 0 -5 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Renewable Generation Growth

100 50 0 -50 -100 -150

Residential Industrial

Commercial Renewables

Figure 2. Is the growth of renewable generation, which includes a majority of DER systems, contributing to the drop in conventional electricity sales in the U.S., as seen in the U.S. electric utility sales data shown above? (Graph created by ZE using data from EIA.) Again, note that the unusually large drop In 2011, McKinsey analysts projected that by 2020, in sales in 2009 was due to the economic recession, and not due to DER deployment of selected existing technologies in energy growth. efficiency, microgeneration, and smart applications could

potentially reduce residential energy demand from the grid x by ~90 percent. Contributing Factors to DER Growth The rapid growth of DER over the last 10 years can be attributed to several factors, including growing concerns for the environment, friendlier regulatory conditions, higher energy prices, and technological advances that have made DER cheaper and more efficient. Environmental concerns in particular have been the main contributor to the growth of DER. Fears that greenhouse gas emissions from gas- and coal-fired power plants are pushing 32 The rising price of energy is also contributing to the growth of DER. While a few years ago, one could have argued that solar PV wouldnt be cost-competitive with conventional energy, the increasing prices of steam coal and natural gasthe main generation fuels in the U.S.are turning the argument in favor of electricity from wind and solar. Even as the price of wind power falls to 4 c/kWh and the price of solar PV is xi projected to catch up to wind power, retail electricity rates have gone up in line with rising prices of coal and gas.

August 2013

InDepth

Figure 3. The cost of wind power is almost on par with conventional generation and solar PV is projected to reach parity in the next few years. (Source: U.S. Department of Energy Transparent Cost Database)

Average Retail Electricity Prices (c/kWh)

14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00

1994

2005

1990

1991

1992

1993

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2006

2007

2008

2009

2010

2011

Residential

Commercial

Industrial

Figure 4. Rising retail electricity prices are making electricity from wind and solar more attractive. (Source: U.S. Energy Information Administration)

33

2012

August 2013

InDepth
400 350 300 250 200 150 100 50 0 Natural Gas Price (USD/10 million Kcal)

50 45 40 Coal Price (USD/ton) 35 30 25 20 15 10 5 0 2001 2002 2003 2004 Steam Coal 2005 2006 2007 2008 Natural Gas

Figure 5. Rising coal and natural gas prices are contributing to DER growth. (Graph created by ZE using data from EIA)

These factorsfears of global warming, policies promoting alternative energy sources, and advancements in energy efficiency and distributed energy technologyare only going to increase in importance and urgency over the next few years. To add fuel to the fire, so to speak, the decommissioning of old power plants is placing added pressure on utilities to maintain a reliable, yet affordable and cleaner, electricity supply. Thus, its relatively safe to say that the only direction DER is headed is up. The Impact on Utilities The January 2013 report out of utilities trade group Edison Electric Institute (EEI), entitled Disruptive Challenges: Financial Implications and Strategic Responses to a Changing xii Retail Electric Business, highlights the financial risks namely lost revenue, increasing costs, lower credit rating (access to capital) of an increasingly distributed electricity market and how DER growth will affect the traditional electricity business model. Europe, where the electricity market is decentralizing even faster than the U.S., can be used as a model for how the U.S. electric power industry should proceed. According to Eurelectric, Europes electricity industry association, small generation units with capacities of below 10 MW grew significantly in prominence, from around 10 GW in the year 2000 to more than 70 GW currently installed. Similar to the U.S., solar PV is leading the transition to distributed energy in Europe, with 59 GW installed in 2012 and over three million households producing their own electricity from solar, with small wind turbines, cogeneration units, biogas-powered generators, and micro-turbines projecting gradual catch-up. 34

Eurelectric predicts that the growth of distributed energy means that distribution networks will need to evolve to handle bi-directional power flows, changing profiles for system use, and the growth of prosumers system users that can be a producer or consumer at different times of the xiii day or season. Back in the U.S., EEIs main conclusion is that the utility industry must adapt to DER the way the telecommunications industry adapted to the advent of mobile technology, or else the utilities will become irrelevant. In other words, the electric power industry needs to gradually incorporate distributed energy into their business models or resign themselves to obsolescence. News articles in the last month have very unsubtly reflected the same sentiment, with titles like Electricity Utilities Must Evolve or Die: Are They Up to the Task? and Why the U.S. Power Grids Days are Numbered. Technology: Destroyer, Transformer and Savior? While advances in distributed energy technology are a big reason why utilities are losing their long-standing upper hand, technology is also what could save utilities from devolving into the non-essential backup system for the elderly and less xiv fortunate. Concepts like transactive energy systems and Virtual Power Plants (VPPs) could be utilities answer to bringing DER systems into their business models. As outlined in a recent blog of mine, transactive energy systems would utilize existing smart grid infrastructure to transmit price signals between participants in the electricity market, so that

August 2013

InDepth
With so many new developments in energy generation and transmissions, ensuring the accuracy of data for demand and supply forecasts to avoid energy mismatch and instability will also become paramount. In particular, supply side data will now be harder to forecast because there will be new fundamentals involved, such as requiring specific meteorological data to forecast wind/solar energy production (wind speed, wind direction, global heating, cloud coverage, xvi and more). The necessity of installing more devices to monitor and manage these new generation sources will certainly require new modes of processing this growing volume of data and complexity, and this will undoubtedly become the next big topic of interest in the coming years.

electricity users can benefit from using electricity when it is at its lowest price or choose the type of power generation they want (based on personal preference). This means users could decide to pay more for energy use, if the type of energy they preferred wasnt the cheapest available, like choosing a renewable over a fossil fuel. Virtual Power Plants are clusters of distributed generation installations that are run by a central control entity, and in this case, utilities could exploit their own expertise and act as central control entities. In any case, transitioning away from simply supplying conventional electricity would help utilities survive their predicted obsolescence. European utility companies like E.ON and RWE are already acquiring energy services and offering them to consumers in lieu of traditional electricity service. RWE is also partnering with others to provide microcombined heat and power plants and VPPs that pool energy produced by thousands of small-scale plants in customers' xv basements. Conclusion The growth of distributed energy is slowly but surely creating a more decentralized electricity market and eating away the revenues of conventional utilities. In order for utilities to weather the storm, they will have to identify ways of modernizing their business model to incorporate DERs, potentially through systems such as transactive energy systems and virtual power plants. In order to utilize these systems, U.S. transmission grids will require a fair amount of upgrading to a smarter grid that is st suitable for 21 century energy needs. And, as projected by Eurelectric and EEI, what this will precipitate is a variety of new data challenges, including massive volumes of data flooding the central data management systems on a daily basis at high granularities (automated meters protocol load curves with a measurement rate of 5 60 minutes, which comes up to approximately 8,760 to 105,000 values/year).

Edison Electric Institute, Disruptive Challenges: Financial Implications and Strategic Responses to a Changing Retail Electric Business. ii Edison Electric Institute, Disruptive Challenges: Financial Implications and Strategic Responses to a Changing Retail Electric Business. iii Edison Electric Institute, Disruptive Challenges: Financial Implications and Strategic Responses to a Changing Retail Electric Business. iv Feldman, Carole. Huffington Post, Solar Power in the U.S. becoming a More Popular, Cost-Saving Option for Homeowners. v Intergovernmental Panel on Climate Change. Climate Change 2007: Synthesis Report vi Georgetown University. Obama Makes Major Climate Change Speech at Georgetown. vii Finnigan, John, Big-box retailers turn to solar, how can electric utilities adapt? viii IEA/IRENA Joint Policies and Measures Database. ix Nature.com, Recyclable organic solar cells on cellulose nanocrystal substrates. x McKinsey & Company, Winning the battle for the home of the future. xi Shahan, Zachary. Clean Technica, US Wind Power Prices Down to $0.04 per kWh. xii Edison Electric Institute, Disruptive Challenges: Financial Implications and Strategic Responses to a Changing Retail Electric Business. xiii Jenkins, Jesse, Electricity Utilities Must Evolve or Die: Are They Up to the Task? xiv Martin, Chediak, and Wells, Why the US Power Grids Days are Numbered. xv Reuters, Analysis: How Energy Efficiency Firms are Eating Utilities Lunch. xvixvi Ulbricht, Fischer, Lehner, and Donker, Rethinking Energy Data Management: Trends and Challenges in Todays Transforming Markets.

About ZE PowerGroup Inc ZE is an experienced software and strategic consulting firm that combines energy industry expertise with advanced software development capability. The company possesses deep industry knowledge and comprehensive operational experience. ZE is the developer of ZEMA Suite, a sophisticated Enterprise Data Management and Analysis solution built to meet the specific challenges of energy and commodity market participants. About ZEMA ZEMA is an enterprise data management suite designed for collecting data and performing complex analysis. ZEMA replaces fragmented data collection and analysis processes with a sophisticated, unified and automated data management system. Each ZEMA component can perform as an independent product; this means greater flexibility when integrating ZEMA into your organization. ZEMA is consistently ranked #1 for preferred system, #1 for ease of system integration, and #1 for customer service. ZEMA is easy to use and backed by our support team around the clock. Disclaimer ZE DataWatch is a report, comprised of data updates and expectations for energy and commodity markets and powered by ZEMA. The information contained in the ZE DataWatch is for information purposes only. Although ZE PowerGroup believes the information in this report to be correct and attempts to keep the information current, ZE PowerGroup does not warrant the accuracy or completeness of any information. Information in this report is not intended to provide financial, legal, accounting, or tax advice and should not be relied upon in that regard. ZE PowerGroup is not responsible in any manner whatsoever for direct, indirect, special or consequential damages, howsoever caused, arising out of the use of this report.

35