Because of the legislative and regulatory environment existing today, EDH offers our industry a window of opportunity to provide guidance and knowledge where it will be most valuable.
Washington, DC (Vocus) August 20, 2009
Today Point Carbon announced its latest effort to use its industry leading information practices to provide greater transparency to US energy markets. This will be done in the creation of the new service called the Energy Data Hub (EDH) of which Point Carbon owns a stake. Other supporters include The Depository Trust & Clearing Corporation (DTCC) and SNL. EDH will allow participants to see anonymous transaction data for over the counter energy trades in the US power and gas markets.
Many energy transactions for energy commodities and deregulated power take place on exchanges in the US such as the New York Mercantile Exchange for natural gas and oil; however, more individually tailored or long term energy transactions take place over the counter. In the US, such transactions have typically been considered proprietary data with all details, including pricing information or quantities, kept secret.
"In recent years in the US, there has been a distrust of energy markets because less transparent mechanisms were used by participants. EDH will help to rebalance the energy market in the US, creating more standard nomenclature and greater transparencies on pricing that will remove market inefficiencies. As a neutral observer providing market intelligence, Point Carbon is deeply committed to this service," said Per-Otto Wold, Point Carbon CEO.
The participants will submit data that is stripped of any proprietary information (such as the identities of the contracting parties), quality assured, standardized and in turn redistributed to the other participants in the service. Similarly, indices or market intelligence firms will be able to register as subscribers to the service, acting as redistributors, allowing better modeling and analysis of the North American power & gas markets. A key supporter of the service will be the DTCC, whose family of companies has helped to automate, centralize, standardize and streamline processes that are critical to the safety and soundness of the U.S. capital markets, and which will provide advice to EDH on development of its services and technology.
"EDH will bring light to markets and transaction types never before seen, and bring much standardization for transparency, sorely needed by our industry for a future of financial health and growth," said Bob Anderson, CEO for EDH. "Because of the legislative and regulatory environment existing today, EDH offers our industry a window of opportunity to provide guidance and knowledge where it will be most valuable."
The idea for such a service started following the loss of confidence in energy markets in 2003 and the idea was developed further by the Committee of Chief Risk officers as a distinct not-for-profit entity. However, complications in developing the service from a distinct not-for-profit entity delayed bringing the service to fruition. Point Carbon has worked with those originally involved in the creation of a US energy data hub in bringing its new service to life in a matter of months.
Founding participants are being signed up now, and will comprise an advisory panel for the EDH development.
About Point Carbon
Point Carbon is a world-leading provider of independent news and market analysis for global power, gas and carbon markets. Point Carbon's comprehensive services provide professionals with market-moving information through monitoring fundamental information, key market players, and business and policy developments.
About Energy Data Hub
Energy Data Hub's (EDH) mission is to bring transparency to energy markets. By providing a central hub for energy market stakeholders to store securely, standardize, render anonymous, analyze and disperse energy transaction data, EDH ensures more liquid and balanced markets. EDH's success is the results of our participants desire to create better and more efficient energy markets now and in the future.