OM Transaction Technology
OM Energy Market Solutions: Proven Solutions for Changing Markets OM has more than 300 customers in 20 countries and also provides full outsourcing of services and systems. In North America, OM has offices in New York and Pasadena, Toronto, and Calgary. For more information, visit www.om.com/energy/northamerica.
exchanges and new marketplaces. The PowerSECUR™ clearing system from OM reduces energy market risk while boosting efficiency and liquidity. Solutions that are of particular interest to the North American market include:
Today’s energy markets are challenged by constantly changing market rules and evolving market design. In this uncertain environment, energy industry professionals need comprehensive and flexible system solutions that will help them thrive in the energy environment of today and tomorrow. OM, a world-leading provider of transaction technology to the energy, commodity, and financial services industries, offers central marketplaces and participants trading, risk, and settlement solutions designed to meet the needs of changing marketplaces. An expert in market development, OM is both a systems solutions developer and exchange owner and operator. The experience of running the daily operations of exchanges gives OM a unique market perspective unmatched by others in the industry. In business since 1985, OM is an industry innovator that developed the first day-ahead electricity spot exchange and the first commodities future exchange. Today, more than 25 exchanges worldwide use OM technology to power their marketplaces, including energy marketplaces such as the Nordic Electricity Market, the Natural Gas Exchange (NGX), and the Korean Power Exchange (KPX). OM is clearly a proven industry leader. Eighty-three percent of all exchange-traded power in Western Europe is transacted through marketplace technology from OM. In late 2002, OM was awarded the prestigious Energy Business Award for Excellence in Operations by Commodities Now magazine. POMAX from OM is a series of modular trading, risk management, and settlement systems that offer highly flexible solutions that can be accessed and used over the Internet. PowerCLICK™ and CONDICO™ are proven exchange systems that can handle the demanding needs of both established
POMAX Settlement
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An economical and comprehensive solution for energy settlement, POMAX Settlement™ enables transmission providers and market operators to financially settle LMP-based electricity auction markets according to the Federal Energy Regulatory Committee’s (FERC) Standard Market Design (SMD) rules. POMAX Settlement is easy to configure. Non-programmers such as business analysts can easily incorporate new market rules and tariffs. POMAX Settlement’s scalable architecture enables organizations to expand their data-processing capabilities by simply adding servers and the appropriate hardware, without the need for new and costly software. Integrated dispute tracking and the ability to easily integrate with third-party systems are two more benefits that help make POMAX Settlement a clear choice. The bottom line: POMAX Settlement is a best-of-breed solution that provides a lower total cost of ownership than other comparable solutions.
POMAX Administrator A comprehensive and versatile solution for transaction management, POMAX Administrator™ provides market participants – including large loads, generators, traders, retailers, scheduling coordinators, investorowned and municipal utilities – with the ability to manage their energy transactions in SMD marketplaces. Broad functionality provided by POMAX Administrator includes bid/offer, deal capture, scheduling, meter data management, full shadow settlement, and billing. POMAX Administrator users can adopt most market rule changes without having to go through software modifications. Business users, rather than computer programmers, can perform the configuration changes faster,
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more reliably, and less expensively than almost any software code modification. Multi-market, multi-commodity, and multi-currency capabilities further enhance the versatility of Administrator. Open APIs and modularity provide painless integration with users’ existing systems and applications as well as modules from other similar systems. Since POMAX Administrator is a modular system, users can select only those modules that they need without having to pay for unnecessary functionality. The bottom line: POMAX Administrator is a highly functional, cost effective solution that supports a seamless transition to new SMDcompliant market designs.
POMAX Analyzer An integrated risk analysis and decision suppor t system, POMAX AnalyzerTM provides power market par ticipants with the tools necessar y to maximize their revenue and energy procurement costs under controlled levels of risk. Specifically designed for power market participants such as gas/electricity utilities, gas/electricity consumers, distribution companies, and portfolio managers/service providers, the POMAX Analyzer risk management system brings together all the relevant factors into a single entity to provide the user with a clearly defined overview of the entire energy portfolio, including generation assets, customer load, and contracts. This leaves the user well placed to make decisions concerning financial contracts to hedge the spot exposure of production assets and the overall contract portfolio. The bottom line: POMAX Analyzer is a scalable solution that helps participants of any size minimize risks in the risky energy market.
CONDICO An entry-level marketplace system built specifically for deregulated energy markets, CONDICO is based on a set of field-proven modular subsystems and is designed to provide an efficient and easy-to-use trading platform for today’s energy demands. It is a cost effective, fully functional, and scalable system developed to meet changing business
requirements as liquidity and revenue needs evolve in a growing marketplace. CONDICO provides broad functionality, including real-time trading, matching, clearing, and settlement. The efficiency and configurability of CONDICO is evident in its ability to quickly adapt to shifting parameters. Modifications can be easily implemented by marketplace operators, displacing the need for entire system overhauls and reducing down time. As FERC’s SMD continues to alter the North American market landscape, CONDICO is the intelligent solution for short-term physical markets and the trading of congestive revenue rights, financial derivatives, and other commodity markets, including emission credits and green power credits.
The bottom line: CONDICO meets the new demands facing energy marketplaces in a deregulated environment.
Solution Provider
OM: Unparalleled Expertise OM, long a pioneer in transaction technology, is the only designer, builder, owner, operator, and maintainer of exchanges in the world that also provides those same systems to other marketplaces. As a result, OM has an unparalleled understanding of the operational challenges involved in running a profitable marketplace. This expertise is especially critical during times of change, such as we have today in North American energy markets. ■
www.om.com
CONTACT INFORMATION Per Larsson President and Chief Executive Officer Stockholm, Sweden Magnu Bocker Chief Operating Officer Stockholm, Sweden
Reducing Wholesale Market Risk With Settlement Wholesale electricity markets are ripe with opportunity. Unfortunately, they also are fraught with risk. One effective tool for minimizing cash, credit and business risk is predictive settlement. Because the gap between forward and real-time market settlements is typically a difference of six to eight weeks, based on an independent systems operator’s (ISO) calendar, wholesale market participants expose themselves to a great deal of risk while waiting for retail participants to collect the data. As such, they are never truly able to “close the books.” In order to minimize risk and manage cash and credit in the most effective manner, a settlement system should have a daily predictive settlement function. Using advanced algorithms, predictive settlement systems available today can facilitate cash settlement without the typical delays currently practiced by many ISOs and RTOs. Predictive settlement is intended to fill the gap between forward market settlement and real-time market settlement by providing an estimate of credits and charges much sooner than real-time actual measurements are available. The primary reason for the delay is the time needed to read and aggregate load meter actual values. However, total supply may be ascertained much earlier through accessing generator meter information in the metering database. As the meters on generators are directly polled by the ISO, they are known and available only a few days after the dispatch day. Using this information, in combination with the final schedules, forecasts and public market information (PMI) data from the ISO, reasonably accurate estimates of real-time charges may be calculated. A fully configurable solution should provide information gathering, metering, settlement calculation (predictive, futures, forwards, real-time and post-real-time adjustments), disputes, billing and information delivery components. A configurable settlements system allows its business users, not just IT technicians, to modify their settlements information gathering and resulting calculations in response to changing market rules with minimal effort, negligible risk and at a reasonable cost. Comprehensive settlement systems also include a dispute resolution component. A dispute resolution system should enable its users to register disputes, acknowledge and resolve disputes and calculate new charges. Ideally, the customer will have a Web interface with which to register disputes from the statement or line item – either from specific data or calculation rules. If the dispute is valid, the system will update, recalculate and republish the data. If the dispute is rejected, the market participant can retrieve the reason. Market participants can get status reports on their own disputes over the Internet, and settlement analysts can get an overview and details of disputes for all market participants. — Chris Crosby, Senior Vice President, OM
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Ulf Lidman President, Energy Market Solutions Stockholm, Sweden Patrik Egervall Executive VP, Sales and Marketing London, England
OM 140 Broadway 25th Floor New York, NY 10005 Phone 646.428.2800 Fax 646.428.2899 Charlotte Office Phone 704.341.5972 Mobile 704.516.9084 Fax 704.341.7968 BUSINESS CONTACT
Christopher J. Crosby Senior VP Energy Markets, Americas
[email protected]
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