dw_march_2015_pdf

MARCH 2015 

Why 

is 

so 

Paramount 

Crisis ? 

By Aiman El-Ramly, 

C.S.O. ZE PowerGroup Inc. 

aiman@ze.com 

New products and 

data sources 

Delisting of products 

and data sources 

Potential impact 

on data 

Changes to data attributes, 

replacement of products 

Powered by

Contents 

Editorial 5 

Nasdaq Adds to the Energy Derivatives Markets and Steps in against CME and ICE 5 

Power 7 

FERC: Primary Frequency Response Service to Be Traded in the Market 7 

EEX Launches Italian/Phelix and Italian/French Financial Power Location-Spread Futures 8 

MISO Introduces Extended LMP, DRR, and Other Enhancements 8 

Nasdaq to Initiate Power Futures Market 9 

EEX Discontinues Power Production Data Provision 10 

Summary 

Petroleum 11 

Platts to Launch Gasoline FOB Mediterranean Crack Swaps 11 

Platts to List European/Asian Naphtha Swap Spread Assessments 11 

Platts’ Sakhalin Blend Crude Assessments to Replace Vityaz 12 

Platts to Publish European Metallocene and LLDPE C6 Assessments 12 

Platts Launches Middle East Sulfur Gasoil Assessment 12 

Platts Introduces Gulf Coast Supplemental Gasoline Assessments 13 

Platts Launches Gulf Coast ULSD and No. 2 Heating Oil Assessments 13 

Platts Lists WTI Midland Crude Oil Assessments 14 

Argus Adds Asian DeWitt Butadiene Assessments 14 

Argus Introduces Two Russian Crude Assessments 15 

Argus Adds Fuel Oil Bunker Assessment to Argus Marine Fuels 15 

Argus Launches Argus Global Wax 16 

Argus Lists WTI Houston Assessments 17 

CME to List Singapore Fuel Oil Futures Contracts 17 

CME to List Singapore Mogas 92 Unleaded and Brent Crack Spread Futures 19 

CME Launches Louisiana Crude Oil Storage Futures 19 

CME Lists New York Jet Fuel Futures 21 

ICE Introduces European Crude and Refined Oil Options and Futures 22 

Nasdaq to Inaugurate Oil Futures Market 25 

NCDEX Lists New Currency Exchange Rate for Light Sweet Crude Contract 26 

Platts to Discontinue CIF Augusta Kumkol Assessments 26 

Platts to Stop Publishing Various North American Crude Yields, Netbacks, and Margins 26 

Platts Discontinues Oil and Refined Products Section in Weekly Global Ethanol Report 27 

Argus Discontinues Mangyshlak Blend cpt Akzhaiyk Assessment 27 

Argus Discontinues WCS-WTI Differential Assessments 27 

Argus Amends Ukrainian Gasoil Diesel Assessment Descriptions 28 

Argus Changes Descriptions for Bitumen Codes 28 

NYMEX Amends Gulf Coast Sour Crude Oil Futures Contract 29 

March 2015 

2

Natural Gas 30 

Argus Launches Hungarian Natural Gas Assessments 30 

CME Lists Natural Gas Intercommodity Spreads 31 

Nasdaq to Launch Natural Gas Futures Market 32 

Platts to Replace Ras Gas with Deodorized Field Condensate Assessments 32 

Platts Renames French PEG Sud Gas Assessments 33 

Summary 

Coal 34 

Platts to Launch Metallurgical Coal China Index Series 34 

Argus Launches Latin American Coal Assessments 35 

Argus Launches Australian Metallurgical Coal Assessments 35 

CME Lists Asia Coal Options 36 

CME Launches Short-Dated International Coal Calendar Strip Options 37 

Softs and Metals 38 

SOFTS 38 

Platts Launches Weekly Export Premium FOB Antwerp Sugar Assessments 38 

Argus Introduces Caribbean Fertilizer Assessment 39 

CME Lists European Cocoa Futures 40 

ICE Launches European Cocoa Futures and Options 40 

CBOT Amends Fertilizer Cleared Swap Contracts 42 

Argus Launches Ferrous Scrap and Iron Ore Assessments for Turkey 43 

METALS 44 

Argus Introduces Minor Metals Report and Data Feed 44 

Argus Lists Chinese Gadolinium Oxide Assessment 44 

Argus Adds Weekly Chinese Iron Ore Assessments 45 

Thomson Reuters Launches Copper Mine Data Service 45 

LBMA Launches New Gold Price 46 

SGX Launches TSI-based Iron Ore Swap and Futures 47 

Platts to Discontinue Chinese Steel Assessments 47 

Platts Discontinues East Asian Hot-Dip Galvanized and Merchant Bar CFR Assessments 47 

Platts to Discontinue East Asian Wire Rod Prices 48 

HKFE Suspends Trading of Gold Futures 48 

LME and HKEx Partner with Borsa Istanbul 48 

Finance 49 

CBOE to Launch MSCI Index Options 49 

CBOE Begins Listing Options on FTSE and Russell Indexes 50 

Nasdaq Lists Tuttle Tactical Management US Core ETF 50 

Thomson Reuters Launches Monthly IPSOS Global Primary Consumer Sentiment Index 50 


3

Bloomberg Collaborates with the African Development Bank to Launch African Bond Index 51 

Eurex to Launch New Options Contracts on Euro Bund Futures 52 

ETFs Launched on Xetra Provide Access to US Stocks 52 

Source JPX-Nikkei 400 UCITS ETF Launched on Xetra 53 

UBS ETF Launched on Xetra Provides Currency-Hedged Access to CMCI Commodity Index 54 

UBS ETF Listed on Xetra Provides Currency Hedging to MSCI Canada Index 55 

Euronext Launches Private Placement Bonds Initiative 55 

CME Group and TAIFEX Sign Letter of Intent for Cross-Border Collaboration 56 

TMX Group and Industrial Commercial Bank of China (Canada) Sign MOU 56 

Summary 

Other 57 

EIA Releases New Data Add-In Tool for Excel 57 

Bloomberg Professional Service Adds Genscape Proprietary Data for Commodity Markets 57 

News from Data Vendors 58 

ZEMA Adds Power, Currency, Weather, Metals, and Natural Gas Data Sources in March 58 

ZE Introduces DataWatch for iPad 59 

PEGAS Successfully Launches NBP Gas Spot and Futures and PSV Gas Future Contracts 60 

PEGAS to Offer Straight-Through Processing (STP) Registration Service for all 

Gas Derivatives Contracts 61 

Argus Launches WTI Houston Assessment 62 

OTC Global Holdings and EOXLive to Support Nasdaq’s Energy Derivatives at Launch 64 

MDA Introduces New Midday Model Predictor 65 

Monthly Market Analysis 66 

Crude Oil Brent vs. WTI: Prompt-Month Contract (NYMEX) 66 

Crude Oil Brent vs. WTI: Forward Curve (NYMEX) 67 

Henry Hub Natural Gas Forward Curve 68 

Actual Weather (AccuWeather) 69 

Electricity: Day-Ahead Prices (ICE) 70 

In Depth 71 

Why Is Crisis so Paramount? 71 


4

Nasdaq 

Adds to the Energy Derivatives Markets 

and Steps in against CME and ICE 

Editorial 

By Olga Gorstenko, 

Editor-In-Chief, DataWatch 

olga@ze.com 

I admire the valor of Nasdaq – daring to enter the energy derivatives market space that has 

been dominated by two giants, CME and ICE. Nasdaq, operating mainly in stock markets, 

though with some exposure to European power markets, decided to expand into 

North American power, oil, and natural gas futures and options starting summer 2015. 

Even though, unlike CME and ICE, this exchange is not planning to handle any physical but 

will instead focus only on cash-settled contracts, the impact from this new entrant might 

be noteworthy. 

Nasdaq is aiming high and projects to take over 10% of this market in two years. But how will 

these ambitions be realized? Trying to find the answer, I took a look at some financial figures 

from the commodity exchanges’ most recent annual filings. It was interesting, but not 

shocking, to learn that both exchanges did not do perform so well in the energy sector. First of 

all, in 2014, ICE reported $3,013 million from transaction and clearing fees, the largest 

portion of which came from the interest rate products, which increased almost six-fold 

compared to the last year’s results and equities contracts, which grew nine-fold. At the same 

time, the combined revenues from natural gas, oil, and power contracts have flattened out. In 

2014, the revenue from energy contracts comprised about 25% of the total transaction and 

March 2015 5

“Nasdaq is aiming high 

and projects to take over 

10% of this market in two 

years. But how will these 

ambitions be realized?” 

clearing fees. In 2013, the energy contracts’ 

share was over 55%. 

CME, according to the 2014 annual report, 

enjoyed the annual increase in transaction 

and clearing fees by 6% to $2,616 million, 

which was, however, mainly attributed to 

interest rate products. Similar to ICE, 

energy contracts have not exactly been 

shining stars: their average daily volumes 

represented only 12% of the total volume of 

trades in 2014, which was a 2% decrease 

compared to the previous year’s data. 

The not-so-wonderful performance of the 

energy contracts in the commodity 

exchanges’ portfolios can be explained by 

several factors, the most obvious of which is 

the market caution regarding the future of oil 

markets and a somewhat apathetic outlook 

for natural gas. 

So what does really attract Nasdaq to 

products that are currently not economically 

attractive? My bets are on Nasdaq’s intent of 

taking over the market share by applying the 

low price strategy. In fact, it has been 

suggested by some sources that the 

exchange is planning to move into the 

energy space by lowering the cost of trades 

by 50%. At the same time, Nasdaq has been 

negotiating bringing on its side such trading 

giants as Goldman Sachs, JP Morgan, 

Morgan Stanley, and others. The quote by 

Hans-Ole Jochumsen, the President of 

Nasdaq, in the corporate press release 

Editor-In-Chief 

Olga Gorstenko 

Email: olga@ze.com 

ZEMA Inquiries 

Bruce Colquhoun. P: 604-790-3299. E: bruce.c@ze.com 

Advertising & Vendor Relationships 

Bruce Colquhoun. P: 604-790-3299. E: bruce.c@ze.com 

Contact DataWatch 

E: datawatch@ze.com 

Front Desk: 1-866-944-1469 

Editorial Department: 778-296-4183 

M: ZE PowerGroup Inc. 130-5920 No. 2 Road, 

Richmond, BC V7C 4R9 

To search our archives: www.datawatch.ze.com 

Get real-time data updates @zedatawatch 

Subscribe on your iPad today 

starts with the statement that Nasdaq’s 

“strategy is always to meet demand where 

competition is lacking.” It is an absolute 

truth: while the market is well developed and 

liquid, it is being run by duopoly. And with 

Nasdaq specializing in stock trades, which 

are usually operating under lower margins 

than commodity markets, frugality will not 

be a shocker but more of a standard modus 

operandi. In the end, entering the markets 

when the big guys are already losing and are 

unlikely to compete by slashing prices could 

have been a well thought-out, tactical move. 

As for the rest of us: there is nothing wrong 

with lower costs and more alternatives for 

those who are shopping around. < 

Editorial 


6

Power 

FERC: Primary Frequency Response Service 

to Be Traded in the Market 

On February 19, 2015, the Federal Energy Regulatory Commission (FERC) proposed to allow 

the sale of primary frequency response service at market-based rates by sellers with 

market-based rate authority for energy and capacity. The Notice of Proposed Rulemaking 

(NOPR) is intended to promote competition in anticipation of growing demand for the service 

as a result of a reliability standard that requires Balancing Authorities to meet a minimum 

frequency response obligation. 

Primary frequency response involves the autonomous, automatic, and rapid response of a 

generator or other resource to change its output to rapidly dampen large changes in 

frequency, which must be maintained within predetermined boundaries above and below 

60 Hertz to ensure reliable operation of the North American electric system. 

Most Balancing Authorities should be able to use their own resources to meet the Frequency 

Response and Frequency Bias Setting Reliability Standard (BAL-003-1) approved by FERC in 

January 2014. However, the standard does not limit Balancing Authorities in how they meet 

the requirements of the standard, and the Commission believes that some may be interested 

in voluntary purchases of a primary frequency response product if doing so would be 

economically beneficial. 

Any entity selling primary frequency response service at either market- or cost-based rates 

would be required to report those sales in its Electric Quarterly Report to the Commission. 

Comments on the NOPR are due 60 days after publication in the Federal Register. 

See the original announcement. 

ZEMA, ZE’s data management solution, excels at collecting power market data from ISOs and RTOs and transforming 

it into real market intelligence. ZEMA’s Dashboard functionality also helps electricity market participants gain a broad 

snapshot of events that may impact pricing. To learn more, visit http://www.ze.com/the-zema-solutions/data/. 


EEX Launches Italian/Phelix and Italian/French Financial Power 

Location-Spread Futures 

On March 12, 2015, the European Energy Exchange (EEX) announced that it has extended its 

power location spread offering to include Italian power futures. With this product 

enhancement, the following two-legged location spreads with guaranteed execution 

were introduced: 

Power 

Leg 1 Leg 2 

Italian Power Futures 

Phelix Futures 

Italian Power Futures 

French Financial Power Futures 

It is possible to trade the new location spreads via the frontend of the T7 Trad-ing System, EEX 

TT Screen and GV Portal as well as other third-party applications. 


MISO Introduces Extended LMP, DRR, and Other Enhancements 

As of March 1, 2015, Midwest Independent System Operator (MISO) initiated the 

following enhancements to the electricity markets: 

The establishment of Extended Locational Marginal Pricing (ELMP) allows MISO to better 

ensure that the true cost of energy is represented in the market. By incorporating commitment 

costs for fast-start resources and emergency demand response, ELMP is able to reflect a more 

stable, dependable cost of energy and minimize uplift charges. 

Market-to-market coordination involves applying a more targeted, precise approach to 

managing congestion along the MISO-SPP border. It allows the two organizations to apply an 

economic dispatch in a way that cuts across borders and allows more cost effective 

congestion management, no matter which system provides it. 

Enhancements to utilizing demand response resources (DRR) include allowing DRR to 

provide multi-part offer curves and provide maximum daily regulating reserve and maximum 

daily contingency reserve limits. Additionally, the host load zone association is removed for 

certain DRR. 

An external asynchronous resource (EAR) is a market resource connected to the main MISO 

market by a DC tie. A bidirectional EAR allows participants to submit price sensitive bids and 

offers and enable dispatch of flexible hydro facilities to help address dynamic changes in 

supply and demand in the MISO markets. 


To keep abreast of ISO market trends, leverage ZEMA’s advanced data collection and validation capabilities. ZEMA has 

been collecting ISO.TRO data since the advent of power markets deregulation. ZEMA collects all reports for all the 

organized markets. To book a complimentary ZEMA demonstration, visit http://www.ze.com/book-a-demo/. 


8

The ZEMA graph below shows power futures contracts in the PJM AEP Zone and SPP North 

Hub, comparing peak and off-peak power prices between May 2015 and October 2016 (ICE), 

by results of trades of PJM and SPP futures on February 16, 2015. Both PJM AEP Zone and 

SPP North Hub’s futures power price trends peak in July and January; the peak hour’s power 

price averages about one-third higher than the off-peak power price in both zones. PJM AEP 

Zone’s power price, which peaks at $53 USD/MWh, is higher than SPP North Hub with the 

highest price peaking at $39 USD/MWh. To learn more about how ZEMA can help with your 

data and analysis needs, book a complimentary ZEMA demonstration. 

Power 

© Graph created with ZEMA 

Nasdaq to Initiate Power Futures Market 

On March 11, 2015, Nasdaq announced the establishment of a new energy futures market 

with contracts in power, oil, and natural gas to be traded on the Nasdaq Futures Inc. (NFX) 

platform. As part of this initiative, Nasdaq is introducing the following US power futures 

contracts mid-year: 

• NFX CAISO NP-15 Hub Day-Ahead Off-Peak Financial Futures 

• NFX CAISO NP-15 Hub Day-Ahead Peak Financial Futures 

• NFX CAISO SP-15 Hub Day-Ahead Off-Peak Financial Futures 

• NFX CAISO SP-15 Hub Day-Ahead Peak Financial Futures 

• NFX ISO-NE Massachusetts Hub Day-Ahead Off-Peak Financial Futures 

• NFX ISO-NE Massachusetts Hub Day-Ahead Peak Financial Futures 

• NFX MISO Indiana Hub Real-Time Off-Peak Financial Futures 

• NFX MISO Indiana Hub Real-Time Peak Financial Futures 

• NFX PJM AEP Dayton Hub Real-Time Off-Peak Financial Futures 


9

• NFX PJM AEP Dayton Hub Real-Time Peak Financial Futures 

• NFX PJM Northern Illinois Hub Real-Time Off-Peak Financial Futures 

• NFX PJM Northern Illinois Hub Real-Time Peak Financial Futures 

• NFX PJM Western Hub Day-Ahead Off-Peak Financial Futures 

• NFX PJM Western Hub Day-Ahead Peak Financial Futures 

• NFX PJM Western Hub Real-Time Off-Peak Financial Futures 

• NFX PJM Western Hub Real-Time Peak Financial Futures 

Power 

Nasdaq will offer cash-settled energy derivatives with a transparent fee structure, and the 

products will be cleared through The Options Clearing Corporation (OCC). 

NFX, the exchange group’s US-based designated contract market (DCM), will leverage the 

exchange group’s transformative Genium INET technology, and the platform will be domiciled 

in Chicago. The platform provides open and neutral access, and firms will be able to access 

the market through proprietary order management systems, broker platforms, and leading 

independent software vendors. 


EEX Discontinues Power Production Data Provision 

As of March 31, 2015, EEX, in coordination with the reporting companies, 

discontinued the provision for the following data: 

• Power production: Available energy 

Furthermore, the installed capacity of power production units with a capacity of less than 

100 MW, which was provided by the transmission system operators, has also been 

discontinued. The historical data remains available on the FTP server infoprodutcs.eex.com 

but will not be updated any longer. 

The following files are affected: 

• YYYY-ExAnteInformationPlannedEnergy- DE_AT-YYYYMMDDhhmmss.csv 

• YYYY-ExAnteInformationSumInstalledCapacityProductionLT100-DE_AT-YYYYMMD- 

Dhhmmss.csv 



10

Petroleum 

Platts to Launch Gasoline FOB Mediterranean Crack Swaps 

Effective June 1, 2015, Platts intends to launch assessments for Mediterranean 

premium unleaded gasoline FOB cargo Brent crack swaps at 16:30 London time. Platts 

proposes to add these assessments to enhance its coverage of the gasoline paper market. 

The new assessments would reflect the balance month, front month, and second month 

swaps values in US dollars per barrel with a conversion rate of 8.33. 

Platts expects to publish these new assessments on PFC Europe, with a page and market 

database symbols to be announced in due course. 


ZEMA collects more than 300 reports on petroleum from Platts alone. To learn more about ZEMA’s extensive data 

coverage, visit http://www.ze.com/the-zema-solutions/data/. 

Platts to List European/Asian Naphtha Swap 

Spread Assessments 

As of June 1, 2015, Platts intends to publish assessments of the east/west Naphtha 

swap spreads. The east/west naphtha swap spread would represent the difference between 

the comparable month’s Mean of Platts Japan naphtha and the naphtha Northwest Europe 

CIF cargo swaps. 

Platts would add these assessments to its existing naphtha derivative suite to enhance its 

coverage of the naphtha market and better represent the key arbitrage route between Europe 

and Asia. 

The new price assessments would cover three calendar months forward from the date of 

publication. Platts would publish bids, offers, and interest to trade the East/West Naphtha 

Spread in the Platts Market on Close assessment process. Platts would publish these 

assessments in US dollars per metric tons. 

Platts expects to publish these new assessments in PFC Europe, with a page and market 

database symbols to be announced in due course. 



Platts’ Sakhalin Blend Crude Assessments to Replace Vityaz 

Effective May 1, 2015, Platts intends to start publishing an assessment reflecting 

the price of Russia’s “Sakhalin Blend” crude. 

This assessment would be identical to, and published alongside the existing “Vityaz” crude 

assessment. Platts proposes to discontinue the existing Vityaz assessment beginning January 

2, 2016. The new Sakhalin Blend assessment and associated code would carry the historical 

data for the Vityaz assessment. 

The change in name would not alter any other aspects of Platts’ assessment of the 

Russian crude. 

The change would ensure Platts’ assessments and terminology conforms with the latest 

market conventions. Platts understands that Sakhalin Energy, the operator of the Sakhalin-2 

offshore project in Russia’s Far East, has replaced its Vityaz crude grade with the Sakhalin 

Blend starting from December 2014. The official trade name of the crude associated with 

production from Sakhalin-2 offshore project and other entities is Sakhalin Blend. 


Petroleum 

ZEMA collects dozens of reports on crude oil from the Eurasian region. ZEMA can then use this data to create 

sophisticated analyses and forward curves. To learn what ZEMA can do for you, book a free demo at 

http://www.ze.com/book-a-demo/. 

Platts to Publish European Metallocene and 

LLDPE C6 Assessments 

Effective April 8, 2015, Platts intends to launch FD NWE basis metallocene and standard 

linear low density polyethylene C6 spot price assessments on a weekly basis in order to 

capture spot market liquidity. 

The spot price assessment would reflect a spot cargo size of 100-300 mt lots. The 

specifications reflected would meet standard LLDPE C6 quality defined by: 1-Hexene 

comonomer with density between 917-922 kg/m 3 for both cast and blown film and a melt 

flow index between 0.9-3.5. This same specification is currently reflected in the contract price 

already assessed by Platts and which Platts will continue to publish. 

The contract price assessment of C6 can be found in Platts Petrochemical Alert on page 

PCA 268 and in Europe and Americas Petrochemicalscan. Specifications for metallocene C6 

are: 1-Hexene comonomer based on metallocene catalyst with a density of 912-940 kg/m 3 

for both cast and blown film, and a melt flow index between 0.5-4.5. 


Platts Launches Middle East Sulfur Gasoil Assessment 

On April 1, 2015, Platts launched a Middle East assessment for 10 ppm sulfur gasoil. 

This follows the growth in production and trade of the 10 ppm sulfur grade in the region. 


12

In line with Platts’ existing FOB AG gasoil assessments, this new assessment is based on 

adding an assessed sulfur differential to Platts’ outright FOB AG Gasoil assessment, which is a 

freight netback from Platts’ outright FOB Singapore Gasoil assessment, both of which 

represent 500 ppm sulfur gasoil. 

Platts will publish a cash differential for the 10 ppm sulfur gasoil grade representing the price 

buyers are willing to pay over and above the benchmark FOB Arab Gulf Gasoil assessment 

around loading dates. 

The new assessments are published in Platts Asia-Pacific/Arab Gulf Marketscan, on Platts 

Global Alert pages 2004, 2005, 2404, 2420 and in the Platts price database. Platts will also 

publish monthly price averages on Platts Global Alert pages 2405 and 2421. 


Petroleum 

ZEMA collects several daily sulfur-based reports from Platts alone. To learn more, visit http://www.ze.com/ 

the-zema-solutions/data/. 

Platts Introduces Gulf Coast Supplemental Gasoline Assessments 

As of April 1, 2015, Platts began simultaneous assessments of Gulf 

Coast 87-unleaded conventional gasoline (M), 93-octane conventional gasoline (V), and 

CBOB (A) at 7.8 and 9 RVP. 

This date reflects the beginning of trade on the 20th cycle for shipping products from 

Pasadena, Texas, along the Colonial Pipeline. 

Until late summer, M-grade, V-grade, and A-grade will be assessed at 7.8 RVP as part of the 

main Gulf Coast assessments. 

The date for the end of Gulf Coast supplemental assessments has not been determined. 


Platts Launches Gulf Coast ULSD and No. 2 Heating 

Oil Assessments 

On March 31, 2015, Platts began assessing the US Gulf Coast ULSD and no. 2 heating oil 

(77-grade) for Colonial Pipeline C18 using the New York Mercantile Exchange (NYMEX) May 

ULSD futures contract as the basis. 

This basis is reflected in C18 eWindow instruments as well. Colonial Pipeline’s C18 for 

77-grade will also be assessed against the NYMEX May ULSD futures. 


To learn more about the price of petroleum products in the United States, you can use ZEMA to view records from and the 

US Energy Information Administration (EIA). To book a complimentary ZEMA demonstration, visit http://www.ze.com/ 

book-a-demo/. 


13

Platts Lists WTI Midland Crude Oil Assessments 

On February 26, 2015, Platts launched a new assessment for West Texas 

Intermediate (WTI) Midland Crude Oil out of the Magellan East Houston Terminal. 

This new assessment, called WTI MEH, is part of a suite of evolving assessments designed to 

reflect crude oil spot market developments in the Houston, Texas, area. 

This new assessment reflects 1,000 b/d of ratable crude, for a minimum of 25,000 barrels 

in total, delivered over the course of the prompt pipeline month on a Free In Pipe (FIP) basis. 

Platts reflects Midland WTI quality as delivered to the Magellan East Houston Terminal. 

This new assessment will be published alongside the existing assessment for Light Houston 

Sweet crude, which reflects the value of crude delivered out of three Houston terminals: 

Magellan East Houston Terminal, Enterprise Houston Crude Oil (EHCO) Terminal, and the Oil 

Tanking Houston Terminal. 

The new assessment will be published as a flat price and as a spread. 

The spread will reflect the difference in value for physical WTI MEH versus physical WTI in 

Cushing, Oklahoma, both for delivery in the prompt pipeline month. 

WTI MEH will be published in Crude Oil Marketwire, Oilgram Price Report, North American 

Crude and Products Scan, as well as on Platts Global Alert pages 210, 211, 214, and 215. 

The assessments will be published in Platts’ price database using the following codes: 

Petroleum 

Assessment Daily Monthly Average 

WTI MEH AAYRG00 AAYRG03 

WTI MEH vs. WTI Cushing AAYRH00 AAYRH03 


Argus Adds Asian DeWitt Butadiene Assessments 

Effective March 20, 2015, Argus added the following series to the 

Argus DeWitt Butadiene publication and dbutadiene data file in the DATA/DButadiene folder 

of ftp.argusmedia.com. 

PA-code 

Time 

stamp 

Price 

type 

Continuous 

forward 

Description Unit Category Frequency 

PA0016079 0 8 1 

Butadiene cfr 

China monthly 

average month 

USD/t 

>Petrochemicals> 

Butadiene> 

Asia-Pacific 

Monthly 

PA0016080 0 8 1 

Butadiene FOB 

South Korea 

monthly average 

month 

USD/t 


Butadiene> 

Asia-Pacific 

Monthly 


14

PA-code 

Time 

stamp 

Price 

type 

PA0016081 0 8 1 


Continuous 

forward 


Butadiene cfr 

southeast Asia 

monthly average 

month 

USD/t 


Butadiene> 

Asia-Pacific 

Monthly 

Petroleum 

ZEMA collects more than 50 Argus reports on petroleum products. To learn how ZEMA’s massive data library can 

enhance your company’s business processes, book a free ZEMA demo at http://www.ze.com/book-a-demo/. 

Argus Introduces Two Russian Crude Assessments 

As of March 11, 2015, Argus initiated the following Mangyshlak Blend cpt 

Akzhaiyk assessments: 

PA-code 

Time 

stamp 

Price 

type 

PA0016055 0 1, 2 0 

Continuous 

forward 

Description 

Mangyshlak 

Blend cpt 

Akzhaiyk 

(up to 15kt 

cargos) 

Differential 

basis 

- USD/t 

Unit Category Frequency 

>Crude> 

Russia- 

Caspian>other 

Monthly 

PA0016056 0 1, 2 0 

Mangyshlak 

Blend cpt 

Akzhaiyk 

(more than 

15kt cargos) 

- USD/t 

>Crude> 

Russia- 

Caspian>other 

Monthly 


Argus Adds Fuel Oil Bunker Assessment to Argus Marine Fuels 

As of March 2, 2015, Argus added the following fuel oil bunker code to 

Argus Marine Fuels: 

PA-code 

Time 

stamp 

Price 

type 

PA0016057 2 1, 2 0 


Continuous 

forward 

Description 

Fuel oil 

bunker 

500 cst 

Seattle 

Differential 

basis 

- USD/t 


>Products 

>Fuel oil>US 

west coast 

Daily 

ZEMA’s massive data library includes numerous daily US petroleum reports from Argus. To learn more about ZEMA’s data 

collection capabilities, visit http://www.ze.com/the-zema-solutions/data/. 


15

Petroleum 

Argus Launches Argus Global Wax 

Effective February 27, 2015, Argus introduced Argus Global Wax publication. For 

FTP subscribers, the following PA codes appear in the dwax module in the DWax folder 

on ftp.argusmedia.com. 

PA-code 

Time 

stamp 

Price 

type 

Continuous 

forward 


PA0015808 0 1, 2 0 

Wax paraffin fully-refined 

bulk liquid Wax> 

America 

Monthly 

PA0015809 0 1, 2 0 


bulk liquid 133-144F FOB 

US Gulf USC/lb month 

USC/lb >Wax> 

America 

Monthly 

PA0015810 0 1, 2 0 


bulk liquid >144F FOB US 

Gulf USC/lb month 

USC/lb >Wax> 

America 

Monthly 

PA0015811 0 1, 2 0 

Wax slack bulk liquid 15- 

25 pc FOB US Gulf USC/lb 

month 

USC/lb >Wax> 

America 

Monthly 

PA0015812 0 1, 2 0 


bulk liquid Wax> 

America 

Monthly 

PA0015813 0 1, 2 0 


bulk liquid 133-144F FOB 

US Gulf Euro/t month 

Euro/t 

>Wax> 

America 

Monthly 

PA0015814 0 1, 2 0 


bulk liquid >144F FOB US 

Gulf Euro/t month 

Euro/t 

>Wax> 

America 

Monthly 

PA0015815 0 1, 2 0 


Wax slack bulk liquid 

15-25 pc FOB US Gulf 

Euro/t month 

Euro/t 

>Wax> 

America 

Monthly 


16

Argus Lists WTI Houston Assessments 

On February 26, 2015, Argus began publishing the following new WTI Houston time 

series in the Argus Crude publication and data module. These changes apply to data in the 

DHC module in the DCRDEUS folder on ftp.argusmedia.com. 

PA-code 

PA0016058 2 

Time 

stamp 

Price 

type 

1,2, 

6,7 

PA0016059 2 4, 49 1 

PA0016060 2 49 1 

Continuous 

forward 

1 

Description 

WTI Houston 

month 

WTI Houston 

weighted 

average month 

WTI Houston 

MTD weighted 

average month 

Differential 

basis 

WTI 

WTI 

WTI 


USD/bl 

USD/bl 

USD/bl 

>Crude> 

North 

America> 

US Gulf coast 

>Crude> 

North 

America> 

US Gulf coast 

>Crude> 

North 

America> 

US Gulf coast 

Daily 

Daily 

Daily 

Petroleum 


ZEMA gathers daily settle WTI futures, which can be used to generate valuable analyses and forward curves to 

be pushed to downstream systems. To learn more about the complete ZEMA solution, visit 

http://www.ze.com/the-zema-solutions/. 

CME to List Singapore Fuel Oil Futures Contracts 

Effective April 12, 2015, the New York Mercantile Exchange, Inc. (NYMEX) will list 

the following two petroleum contracts for trading on CME Globex, the NYMEX trading floor, and 

for submission for clearing through CME ClearPort. 

The contract specifications are provided below: 

Contract Name 

Commodity Code 

Singapore Fuel Oil 180cst (Platts) Brent Crack 

Spread (1000mt) Futures 

SF1 

Chapter 749 

Settlement Type 

Contract Size 

Termination of Trading 

Financial 

The contract quantity shall be 6350 U.S barrels (1000 metric tons). 

Each contract shall be valued as the contract quantity (6350) 

multiplied by the settlement price. 

Trading shall cease on the last business day of the contract month. 


17

Minimum Price Fluctuation $0.001 per barrel 

Final Settlement Price Tick $0.001 per barrel 

First Listed and Delivery Month May 2015 

Petroleum 

Block Trade Minimum 

Listing Convention 

Contract Name 


5 contracts 

CME Globex, CME ClearPort, and NYMEX Trading Floor: forty 

eight consecutive months. 

Singapore Fuel Oil 380cst (Platts) Brent 

Crack Spread (1000mt) Futures 

SF3 

Chapter 1110 


Contract Size 


Minimum Price Fluctuation 

Final Settlement Price Tick 

Financial 

The contract quantity shall be 6350 U.S barrels (1000 metric tons). 

Each contract shall be valued as the contract quantity (6350) 

multiplied by the settlement price. 

Trading shall cease on the last business day of the contract month. 

$0.001 per barrel 

$0.001 per barrel 

First Listed and Delivery Month May 2015 

Block Trade Minimum 


5 contracts 

CME Globex, CME ClearPort, and NYMEX Trading Floor: 

forty eight consecutive months. 



18

CME to List Singapore Mogas 92 Unleaded and 

Brent Crack Spread Futures 

Effective April 12, 2015, NYMEX will expand the listing of contract months for the product 

listed below on CME Globex, Open Outcry, and available for submission for clearing on 

CME ClearPort. 

Petroleum 

Code Clearing / Globex 

Title 

Current Listing 

Schedule 

New Listing Schedule (as of 12th of April) 

CME ClearPort: 1NB 

CME Globex: D1N 

Singapore 

Mogas 92 

Unleaded (Platts) 

Brent Crack 

Spread Futures 

12 consecutive 

months 

Monthly contracts listed for the current 

year plus the next calendar year 


ZEMA collects more than 100 regular reports from CME and over a dozen reports related to Brent crude. To learn more 

about ZEMA’s extensive data coverage, visit http://www.ze.com/the-zema-solutions/data/. 

CME Launches Louisiana Crude Oil Storage Futures 

Effective March 30, 2015, the following Crude Oil futures began trading on 

CME Globex and for clearing submission on CME ClearPort. 

This new contract will provide market participants with an innovative, exchange-traded futures 

contract based on crude oil storage capacity at LOOP’s Clovelly Hub in Louisiana, beginning 

with the May 2015 contract month. Each futures contract will represent the right to store 

1,000 barrels of crude oil at the hub for a specific calendar month. 

Contract Name 


LOOP Crude Oil Storage Futures 

LPS 

Chapter 210 


Contract Size 


Physical 

1,000 barrels 

Trading shall cease on the third business day prior to the twenty-fifth 

calendar day of the month preceding the delivery month. If the 

twenty-fifth calendar day of the month is a non-business day, trading 

shall cease on the third business day prior to the last business day 

preceding the twenty-fifth calendar day. 

Minimum Price Fluctuation $0.001 


19

Final Settlement Price Tick $0.001 

First Listed and Delivery 

Month 


May 2015 

Twelve (12) consecutive months 

Petroleum 

CME Match Algorithm 

First In First Out (F) 


The graph below shows the futures contract based on crude oil storage capacity at LOOP’s 

Clovelly Hub in Louisiana, beginning with the April 2015 contract month (CME data). The 

futures contract represents the right to store 1,000 barrels of crude oil at the hub for a specific 

calendar month. The graph shows that future settlement increases monotonically with time, 

from 50 $/bbl in April 2015 to 62 $/bbl as of March 2018, which is about a 24% increase in 

2.5 years. The yearly averages for 2015, 2016, and 2017 are about 52 $/bbl, 56 $/bbl, and 

60 $/bbl, respectively. Analysis like this is easy to customize in ZEMA due to the solution’s 

enhanced visualization functionalities. To learn more about ZEMA suite, please book a 

complimentary demonstration. 



20

Petroleum 

CME Lists New York Jet Fuel Futures 

Effective March 23, 2015, the following NY Jet Fuel futures began trading on 

CME Globex, open outcry, and clearing submission via CME ClearPort: 

Codes 

JET 

BUC 

Contract Name 

NY Buckeye Jet Fuel 

(Platts) vs. NY Harbor 

ULSD Futures 

NY Buckeye Jet Fuel 

(Platts) Futures 

Rule 

Chapter 

997 

996 

Listing 

Schedule 

Current year 

plus three 

consecutive 

years 

Current year 

plus three 

consecutive 

years 

Block 

Trade 

Minimum 

Threshold 

10 

10 

First 

Listed 

Contract 

April 

2015 

April 

2015 

CME Match 

Algorithm 

First In First Out 

First In First Out 


Using ZEMA’s advanced data collection and analytic capabilities, market participants can easily keep track of the new 

data that will be generated by CME. To learn more, visit http://www.ze.com/the-zema-solutions/. 

The ZEMA graph below shows New York jet fuel vs. New York Harbor ULSD (ultra low sulfur 

diesel) futures prices for the last 365 days. New York Harbor ULSD price data is taken from 

NYMEX, and New York jet fuel prices are determined by adding the NY jet fuel vs. NY Harbor 

ULSD futures (published by CME) and the New York Harbor ULSD prices. The difference in 

price between the two commodities is represented by the yellow area, which can be easily 

applied as one of Market Analyzer’s many visualization options, and graphs can be viewed 

instantly as the analytics are built. To learn more, book a complimentary ZEMA demonstration. 



21

ICE Introduces European Crude and Refined Oil Options 

and Futures 

As of March 30, 2015, Intercontinental Exchange (ICE) introduced a European heating oil vs. 

low sulfur gasoil option and a fuel oil 1% FOB average price option: 

Heating Oil Diff – EU-Style Heating Oil vs. Low Sulfur Gasoil Option 

Petroleum 

Description 

Contract Symbol 

Hedge Instrument 

Contract Size 

The Fuel Oil 1% FOB NWE Cargos (Platts) Average Price Option is based on 

the underlying Fuel Oil 1% FOB NWE Cargos (Platts) Future (CAR) and will 

automatically exercise into the settlement price of the Future on the day of 

expiry of the options contract. 

CAR 

The delta hedge for the Fuel Oil 1% FOB NWE Cargos (Platts) Average Price 

Option is the Fuel Oil 1% FOB NWE Cargos (Platts) Mini Future (CAT). 

1,000 metric tons 

Unit of Trading 

Any multiple of 1,000 metric tons 

Currency 

US Dollars and cents 

Trading Price Quotation 

One cent ($0.01) per metric ton 

Settlement Price Quotation 

One tenth of one cent ($0.001) per metric ton 



Last Trading Day 

Last Trading Day of the contract month 

Contract Series 

Up to 60 consecutive months 


22

Fuel Oil Outright – Fuel Oil 1% FOB NEW Cargos (Platts) Average Price Option 

Description 


The Fuel Oil 1% FOB NWE Cargos (Platts) Average Price Option is based 

on the underlying Fuel Oil 1% FOB NWE Cargos (Platts) Future (CAR) and 

will automatically exercise into the settlement price of the Future on the 

day of expiry of the options contract. 

CAR 

Petroleum 

Hedge Instrument 

Contract Size 


Currency 






The delta hedge for the Fuel Oil 1% FOB NWE Cargos (Platts) Average 

Price Option is the Fuel Oil 1% FOB NWE Cargos (Platts) Mini Future 

(CAT). 

1,000 metric ton 

Any multiple of 1,000 metric ton 


One cent ($0.01) per metric ton 






Also on March 30, 2015, ICE listed the following crude and refined oil futures contracts: 

Gasoline Diff – RBOB Gasoline 1 st Line vs. Argus Eurobob Oxy FOB Rotterdam 

Barge Future 

Description 


Contract Size 


Currency 


A monthly cash settled future based on the difference between the 

ICE daily settlement price for RBOB Gasoline 1st Line Future and the 

Argus daily assessment price for Eurobob Oxy FOB Rotterdam Barges. 

GDO 

1,000 metric ton (349,860 gallons) 

Any multiple of 1,000 metric ton 


One hundredth of one cent (¢0.01) per gallon 


23





One thousandth of one cent (¢0.001) per gallon 




Petroleum 

Gasoline Diff – RBOB Gasoline 1 st Line vs. Argus Eurobob Oxy FOB Rotterdam 

Barges Mini Future 

Description 


Contract Size 


Currency 






A monthly cash settled mini future based on the difference 

between the ICE daily settlement price for RBOB Gasoline 

1st Line Future and the Argus daily assessment price for 

Eurobob Oxy FOB Rotterdam Barges. 

GDQ 

100 metric ton (34,986 gallons) 

Any multiple of 100 metric ton 







Gasoline Diff – RBOB Gasoline 1st Line vs. Argus Eurobob Oxy FOB Rotterdam Barges 

Balmo Mini Future 

Description 

A balance of the month cash settled mini future based on the 

difference between the ICE daily settlement price for RBOB Gasoline 

1st Line Future and the Argus daily assessment price for Eurobob 

Oxy FOB Rotterdam Barges. 

Contract Symbol 140-14U 

Contract Size 


Currency 

100 metric ton (34,986 gallons) 

Any multiple of 100 metric ton 



24











Petroleum 


Nasdaq to Inaugurate Oil Futures Market 

On March 11, 2015, Nasdaq announced the establishment of a new energy 

futures market with contracts in power, oil, and natural gas to be traded on the Nasdaq 

Futures Inc. (NFX) platform. As part of this initiative, Nasdaq is introducing the following US oil 

futures contracts mid-year: 

• NFX Brent Crude Financial Futures 

• NFX Heating Oil Financial Futures 

• NFX Low Sulphur Gasoil Financial Futures 

• NFX Option on NFX Brent Crude Financial Futures 

• NFX Option on NFX WTI Crude Financial Futures 

• NFX RBOB Gasoline Financial Futures 

• NFX WTI Crude Financial Futures 

Nasdaq will offer cash-settled energy derivatives with a transparent fee structure, and the 

products will be cleared through The Options Clearing Corporation (OCC). 








25

NCDEX Lists New Currency Exchange Rate for 

Light Sweet Crude Contract 

As of March 20, 2015, National Commodity & Derivatives Exchange Limited (NCDEX) issued 

a new currency exchange rate (which will be fixed for the entire tenure of the contract) for the 

Light Sweet Crude Oil contract, expiring in June 2015: 

Symbol 

Currency Exchange rate (INR/USD) 

CRUDEOIL 63.855 

Petroleum 


ZEMA collects well over 1,000 regular reports on petroleum products and other liquids, including hundreds of records on 

crude oil specifically. To find out how you can leverage ZEMA’s massive petroleum database for your company, book a 

free demo at http://www.ze.com/book-a-demo/. 

Platts to Discontinue CIF Augusta Kumkol Assessments 

Effective October 1, 2015, Platts proposes to discontinue its CIF Augusta Kumkol 

outright and differential assessments. Platts is making this proposal for the discontinuation of 

these assessments due to the conclusion of Kumkol exports out of the Black Sea. 

Platts currently assesses CIF Augusta Kumkol on a daily basis, reflecting cargos of between 

30,000-100,000 mt loading out of the Black Sea and delivered into the Mediterranean. 

Currently, Platts publishes both a CIF Augusta Kumkol differential assessment (AALOW00) 

and an outright assessment (AAHMP00). These assessments appear on Platts Global Alert 

page MH1220 and in the Platts Crude Oil Marketwire. 

Kumkol, which is produced in Kazakhstan, was previously delivered via rail to the Black Sea 

port of Batumi, where it was then loaded for export. Loadings of the grade once averaged 

some 170,000 mt/month, but volumes have been gradually declining over the last several 

years and have been averaging below 30,000 mt/month for more than a year. Exports of the 

grade are expected to halt completely early in 2015. 


Platts to Stop Publishing Various North American Crude Yields, 

Netbacks, and Margins 

Effective September 1, 2015, Platts proposes to discontinue multiple daily, weekly, and 

monthly crude yields, netbacks, and margins. Platts proposes to discontinue these prices as 

they no longer accurately reflect the crude grades refined in their respective regions. 

These prices are published on Platts Global Alert pages 802, 804, 806, 810, 812, 814, 830, 

832, 834, 820, 822, and 824. The daily prices are also published in the Crude Oil 

Marketwire, and the weekly and monthly prices in Oilgram Price Report. The prices are also 

published in Platts Market Data under the listed codes. 

Numerous crack and coking assessments have been discontinued from the following 

publications: Caribbean Daily, Caribbean Weekly, Caribbean Monthly, US Gulf Coast Daily, 


26

US Gulf Coast Weekly, US Gulf Coast Monthly, US Atlantic Coast Daily, US Atlantic Coast 

Weekly, US Atlantic Coast Monthly, US Midwest Daily, US Midwest Weekly, and 

US Midwest Monthly. 


Platts Discontinues Oil and Refined Products Section in 

Weekly Global Ethanol Report 

Effective March 17, 2015, Platts discontinued publishing the Mineral Oil and Refined 

Products section of its Weekly Global Ethanol Report. This change has been made to align the 

content with the Weekly Global Biodiesel Report and to better position the content to reflect 

the central focus of the publication. 


Petroleum 

Argus Discontinues Mangyshlak Blend cpt Akzhaiyk Assessment 

Effective March 11, 2015, Argus has stopped publishing its Mangyshlak Blend 

cpt Akzhaiyk assessment. The code will be stopped in the DARK file of the DARK folder, on ftp. 

argusmedia.com. 

PA-code 

Time 

stamp 

Price 

type 

PA0013232 0 1, 2 0 

Continuous 

forward 

Description 

Mangyshlak 

Blend cpt 

Akzhaiyk 

Differential 

basis 

- USD/t 


>Crude> 

Russia- 

Caspian> 

other 

Monthly 


Argus Discontinues WCS-WTI Differential Assessments 

On February 26, 2015, Argus stopped the following price series in the Argus Crude 

publication and data module. This change applies to data in the DHC module in the DCRDEUS 

folder on ftp.argusmedia.com. 

PA-code 

Time 

stamp 

Price 

type 

Continuous 

forward 

Description 

WCS 

1, 2, 

PA0010773 2 

6, 7 1 Cushing diff 

to WTI month 


Differential 

basis 

WTI 


USD/bl 

>Crude>North 

America>US 

Midcontinent 

Daily 


27

Petroleum 

Argus Amends Ukrainian Gasoil Diesel 

Assessment Descriptions 

Effective March 23, 2015, Argus renamed the following daily assessment in Argus 

Моторное топливо Украины (Argus Ukrainian Motor Fuels): 

PA-code Old description New description 

PA0012999 

Gasoil diesel summer 10ppm fca Kharkov/ 

fca Donetsk 

Gasoil diesel summer 10ppm fca Kharkov 

Gasoil diesel winter 10ppm fca Kharkov/ 

PA0013000 

fca Donetsk 


Gasoil diesel winter 10ppm fca Kharkov 

Argus Changes Descriptions for Bitumen Codes 

Effective March 6, 2015, Argus modified descriptions for the following 

codes belonging to Dbitumen. The current and previous descriptions are noted below. 

PA-code 

PA0000626 0 

PA0000627 0 

PA0000716 0 

Time 

stamp 

Price 

type 

1, 2, 

8 

1, 2, 

8 

1, 2, 

8 

Continuous 

forward 

0 

0 

0 

Old Description 

Asphalt (bitumen) 

FOB Bandar 

Abbas drums $/t 


FOB Bandar 

Abbas $/t 


pen 60/70 FOB 

Rayong $/t 

New 

Description 

Asphalt 

(bitumen) 

FOB Iran 

drums $/t 

Asphalt 

(bitumen) 

FOB Iran 

$/t 

Asphalt 

(bitumen) 

pen 60/70 

FOB 

Thailand 

$/t 


USD/t 

USD/t 

USD/t 

>Asphalt> 

Mideast Gulf 

>Asphalt> 

Mideast Gulf 

>Asphalt> 

Asia- 

Pacific 

Weekly 

Weekly 

Weekly 


28

PA-code 

PA0000717 0 

PA0009626 0 

PA0009627 0 

Time 

stamp 

Price 

type 

1, 2, 

8 

1, 2, 

8 

1, 2, 

8 

Continuous 

forward 

0 

0 

0 

Old Description 


pen 60/70 FOB 

Rayong Baht/t 


class 170 FOB 

Rayong 


class 320 FOB 

Rayong 

New 

Description 

Asphalt 

(bitumen) 

pen 60/70 

FOB 

Thailand 

Baht/t 

Asphalt 

(bitumen) 

class 170 

FOB 

Thailand 

Asphalt 

(bitumen) 

class 320 

FOB 

Thailand 


THB/t 

USD/t 

USD/t 

>Asphalt> 

Asia- 

Pacific 

>Asphalt> 

Asia- 

Pacific 

>Asphalt> 

Asia- 

Pacific 

Weekly 

Weekly 

Weekly 

Petroleum 


NYMEX Amends Gulf Coast Sour Crude Oil Futures Contract 

Effective March 23, 2015, NYMEX amended the terms and conditions of the 

Gulf Coast Sour Crude Oil Futures contract. 

Name 


NYMEX Rulebook 

Chapter 

Venues 

Gulf Coast Sour Crude 

Oil Futures 

MB 506 

CME Globex, CME ClearPort, NYMEX 

Trading Floor 

Specifically, the contract was re-named “LOOP Gulf Coast Sour Crude Oil Futures” and the 

rules have been amended such that fungible blends of Poseidon and Mars blend type crude 

oil streams are deliverable under the contract. There is no open interest in this contract. 



29

Natural Gas 

Argus Launches Hungarian Natural Gas Assessments 

Effective April 1, 2015, Argus introduced the following codes to Argus European 

Natural Gas. The following PA code details will appear in the DNG module in the DENG folder 

on ftp.argusmedia.com. 

PA-code 

Time 

stamp 

Price 

type 

Continuous 

forward 


PA0016235 6 1, 2 0 

Natural gas Hungary 

MGP day-ahead 

Euro/ 

MWh 

>Natural gas> 

Europe> 

Hungary MGP 

Daily 

PA0016077 6 8 0 


MGP-NCG Basis 

day-ahead 

Euro/ 

MWh 

>Natural gas> 

Europe> 

Hungary MGP 

Daily 

PA0016078 6 8 0, 1 

Natural gas 

Hungary MGP-Austria 

VTP Basis day-ahead 

Euro/ 

MWh 

>Natural gas> 

Europe> 

Hungary MGP 

Daily 

PA0016239 6 4 1 


MGP index month 

Euro/ 

MWh 

>Natural gas> 

Europe> 

Hungary MGP 

Daily 


ZEMA collects Argus natural gas data, including data from the Argus International LPG record and the Argus LNG Daily 

record. To learn more about ZEMA, book a free demonstration today at http://www.ze.com/book-a-demo/. 


30

CME Lists Natural Gas Intercommodity Spreads 

Effective March 23, 2015, the listing cycle for following natural gas intercommodity 

spreads has been expanded to list an additional 48 maturities on CME Globex. With this 

change, there is a total of 60 maturities listed starting with the April 2015 to March 2020. 

Intercommodity Spreads 

Natural Gas (Henry Hub) 

Penultimate financial futures vs. 

Natural Gas (Henry Hub) Last-day 

financial futures 

Natural Gas (Henry Hub) 

Penultimate financial futures vs. 

Henry Hub Natural Gas futures 

FIX/FAST and iLink: 

tag 1151-Security 

Group MDP 3.0: tag 

6937-Asset 

FIX/FAST and iLink: tag 

55-Symbol 

MDP 3.0 tag 1151 - 

Security Group 

HP NG IS 

HP NG IS 

tag 762-Security- 

SubType 

Natural Gas 


The ZEMA graph below shows the futures for California SoCal-City Gate and Colorado 

Interstate natural gas trading prices from 2015 to 2020 (NYMEX). In 2015, the price starts at 

around 2.4 USD/MMBtu in California and 2.8 USD/MMBtu in Colorado and slowly increases 

to a high of nearly 4 USD/MMBtu in Colorado by 2020. We can also see that California’s 

natural gas price is generally lower than that of Colorado. To learn more, book a 

complimentary ZEMA demonstration. 



31

Natural Gas 

Nasdaq to Launch Natural Gas Futures Market 

On March 11, 2015, Nasdaq announced the establishment of a new energy futures market 

with contracts in power, oil, and natural gas to be traded on the Nasdaq Futures Inc. (NFX) 

platform. As part of this initiative, Nasdaq is introducing the following US natural gas futures 

contracts mid-year: 

• NFX Henry Hub Natural Gas Financial Futures - 10,000 

• NFX Henry Hub Natural Gas Financial Futures - 2,500 

• NFX Henry Hub Natural Gas Penultimate Financial Futures - 2,500 

• NFX Henry Hub Natural Gas Penultimate Financial Futures - 10,000 

• NFX Option on NFX Henry Hub Penultimate Financial Future - 10,000 







ZEMA contains advanced display functionalities that enable users to easily align news updates from organizations such 

as Nasdaq next to market data, giving users an enhanced market perspective. For further information, visit 

http://www.ze.com/the-zema-suite/dashboard/. 

Platts to Replace Ras Gas with Deodorized Field Condensate 

Assessments 

Effective May 1, 2015, Platts intends to start publishing an assessment reflecting the price of 

Qatari condensate under the name Deodorized Field Condensate (DFC). 

This assessment would be identical to, and published alongside, the existing Ras Gas 

condensate assessment. Platts proposes to discontinue the existing Ras Gas assessment 

starting January 2, 2016. The new DFC assessment and associated code would carry the 

historical data for the Ras Gas assessment. 


32

The change in name would not alter any other aspects of Platts assessment of Qatari 

condensate. The change would ensure Platts’ assessments and terminology conforms with 

the latest market conventions. Platts understands that Qatar International Petroleum 

Marketing Co., or Tasweeq no longer sells any condensate with the trade name Ras Gas. The 

official trade name of the field condensate associated with LNG production from Ras Gas and 

other entities is DFC. 

Natural Gas 


Platts Renames French PEG Sud Gas Assessments 

Effective April 1, 2015, Platts aligned its naming convention for the French 

PEG Sud natural gas market to reflect an industry-wide trading framework change, in line with 

announcements made by the French Commission de Regulation de l’energie (CRE). 

On April 1, 2015, the PEG TIGF and PEG Sud hubs merged to form a single gas hub to be 

named Trading Region South (TRS). 

As a result the following Platts assessments (symbols) have undergone a name change: 

Effective Date: April 1, 2015: 

• PEG Sud Day-ahead/GPSTD00: French PEG Sud DA Eur/MWh to French TRS DA Eur/MWh 

• PEG Sud Weekend/GPSTT00: French PEG Sud TDt Weekend Eur/MWh to French TRS TDt 

Weekend Eur/MWh 

Effective March 2, 2015: 

• PEG Sud Month-Ahead/GPSTM00: French PEG Sud MA Eur/MWh to French 

TRS MA Eur/MWh 



33

Coal 

Platts to Launch Metallurgical Coal China Index Series 

On April 13, 2015, Platts will launch of Metallurgical Coal China Index (MCCI) price 

assessment series. The new series will include five spot metallurgical coal assessments in the 

Chinese domestic spot market. The proposed assessments are designed to reflect the daily 

tradable values of a range of coal specifications in the Chinese domestic spot market. 

The assessments are MCCI Shanxi Premium Low Vol, MCCI Shanxi High Sulfur Premium Low 

Vol, MCCI North China Fat Coal, MCCI Shanxi PCI, and MCCI Shandong Semi Soft. 

The assessments will be assessed in yuan per metric ton on either an ex-washplant, free on 

rail, or delivered duty paid Tangshan basis, wherever applicable. Platts and Fenwei will also 

assess four domestic logistic routes, including both rail and truck freight from Shanxi to 

Tangshan and Shandong. 

The assessments will be published in SBB Steel Markets Daily, Coal Trader International, 

Metals Market Data category MC, Platts Metals Alert (pg. 1050), and Global Coal Alert 

(pg. 1050). 


ZEMA collects more than 600 Platts records, many of which contain coal market data. To learn more about ZEMA’s vast 

data library, visit http://www.ze.com/the-zema-solutions/data-coverage/. 


Coal 

Argus Launches Latin American Coal Assessments 

Effective March 30, 2015, Argus added new series to Argus Coal Daily. These 

changes apply to the dcu files in the DCDR folder of ftp.argusmedia.com. 

PA-code 

Time 

stamp 

Price 

type 

PA0016203 0 20 0 

PA0016204 0 20 0 


Continuous 

forward 

Description 

Coal panamax 

size 70-75kt 

Puerto Bolivar 

- Pecem 

Coal handy 

size 40-50kt 

Puerto Bolivar 

- Itaqui 

Differential 

basis 

- USD/t 

- USD/t 


>Freight 

>Coal> 

Latin 

America 

>Freight 

>Coal> 

Latin 

America 

Weekly 

Weekly 

Argus Launches Australian Metallurgical Coal Assessments 

Effective March 2, 2015, Argus launched a new price series to the Argus Steel 

Feedstocks publication and in the data module. The following PA code details will appear in 

the DSteelFeedstocks module in the DATA/DSteelFeedstocks folder on ftp.argusmedia.com. 

PA-code 

Time 

stamp 

Price 

type 

PA0015806 0 17 1 

PA0015807 0 17 1 


Continuous 

forward 


Metallurgical Coal 

premium hard FOB 

Australia (low-vol) within 

90 days average month 

Metallurgical Coal hard 

FOB Australia (mid-vol) 

within 90 days average 

month 

USD/t 

USD/t 

>Coal> 

Asia-Pacific 

>Coal> 

Asia-Pacific 

Monthly 

Monthly 

ZEMA collects more than a dozen data reports on coal from Argus alone, along with over a hundred more from other 

sources. To learn more, visit http://www.ze.com/the-zema-solutions/. 


35

Coal 

CME Lists Asia Coal Options 

Effective March 30, 2015, Asia Coal options began trading on CME Globex, 

open outcry, and clearing submission via CME ClearPort. 

Product 

Coal (API 8) cfr South 

China (Argus/ 

McCloskey) Average 

Price Option 


China (Argus/ 

McCloskey) Option on 

Quarterly Futures Strip 


China (Argus/ 

McCloskey) Option on 

Calendar Futures Strip 

Indonesian Coal 

(McCloskey subbituminous) 

Average 

Price Option 



Option on 

Quarterly Futures Strip 



Option on 

Calendar Futures Strip 

FIX/FAST 

and iLink: tag 

1151-Security 

Group 

MDP 3.0: tag 

6937-Asset 

FIX/FAST 

and iLink: tag 

55-Symbol 

MDP 3.0 tag 

1151 - Security 

Group 

(Outrights) 


tag 55-Symbol MDP 

3.0 tag 1151 - 


(UDS) 

Chapter 

A8A EF EX 1120 

A84 EF EX 1121 

AC8 EF EX 1123 

ICA EF EX 1124 

IC4 EF EX 1132 

ICC EF EX 1133 

Contract Size 

1,000 

metric tons 

3,000 

metric tons 

12,000 

metric tons 

1,000 

metric tons 

3,000 

metric tons 

12,000 

metric tons 



36

CME Launches Short-Dated International Coal Calendar 

Strip Options 

Effective March 30, 2015, Short-Dated International Coal Calendar Strip options began 

trading on CME Globex, open outcry, and clearing submission via CME ClearPort. 

Product 

Coal (API 2) cif ARA (Argus/McCloskey) 

Short-Dated Option on Calendar Futures Strip 

Coal (API 4) FOB Richards Bay (Argus/ 

McCloskey) Short-Dated Option on Calendar 

Futures Strip 


tag 1151-Security 

Group MDP 3.0: tag 

6937-Asset 


tag 55- Symbol 

MDP 3.0 tag 1151 - 


(Outrights) 

MTC EF EX 

MFY EF EX 

FIX/FAST and 

iLink: tag 55- 

Symbol MDP 

3.0 tag 1151 - 


(UDS) 

Coal 


ZEMA collects more than 100 records from CME, several of which are on coal. To learn how the ZEMA solution can 

enhance your company’s market awareness, book a complimentary demo at http://www.ze.com/book-a-demo/. 

The ZEMA graph below shows the coal option trading history for October 2015 contract at strike 

prices $7,000 (API2) and $7,100(API4). We can see that both of the option prices went up in 

mid-February and early March. When we check the underlying asset price (indicated by the blue 

bars) for the same period, we can see a clear increase in coal price around the same time. We 

can also see that the coal price dropped towards the end of February, and the options showed a 

steeper decline. This demonstrates that options prices are closely related with underlying asset 

prices, and options prices can be more volatile compared to the underlying asset. Creating 

customized analysis like this is easy to perform in ZEMA. To learn more, book a complimentary 

ZEMA demo. 



37

Softs and Metals 

SOFTS 

Platts Launches Weekly Export Premium FOB Antwerp 

Sugar Assessments 

Effective April 3, 2015, Platts began assessing its Export (Premium to Ldn 5) - FOB Antwerp 

sugar assessment on a weekly basis. It was previously assessed on a monthly basis. 

This assessment is established as an indicator of out-of-quota white sugar exported on a FOB 

basis from Antwerp. Price assessments reflect EU 45 ICUMSA white sugar of standard quality 

and a maximum ICUMSA of 45 and meeting EEC No 2. The assessment is published as a 

premium to the ICE White Sugar Futures front-month contract. 

This follows the launch of the EU Sugar Weekly, a new publication providing pricing and news 

information on the regional sugar market. This assessment appears on Platts Agriculture Alert 

service Page PA1512, and will continue to be found in the Platts price database under symbol 

code SGBCB00. 


ZEMA collects several sugar-based reports from Platts and IHS. To learn more about ZEMA’s data coverage, visit 

http://www.ze.com/the-zema-solutions/data-coverage/. 


Argus Introduces Caribbean Fertilizer Assessment 

Effective March 5, 2015, Argus added the following time series to 

Argus FMB North American Fertilizer: 

PA-code 

Time 

stamp 

Price 

type 

PA0009360 0 1, 2, 8 0 

Continuous 

forward 

Description 

Ammonia 

FOB 

Caribbean 

Differential 

basis 

- USD/t 


>Fertilizer>Ammonia 

Weekly 



The ZEMA graph below shows the average monthly DAP fertilizer clearing futures prices for 

New Orleans and Tampa, as well as the average monthly urea fertilizer clearing futures prices 

in New Orleans from March 2015 to January 2016 (LCH Clearnet data). In March 2015, New 

Orleans DAP, Tampa DAP, and New Orleans urea fertilizer clearing futures prices reached 

highs of $430, $480, and $290 respectively. New Orleans and Tampa DAP fertilizer clearing 

futures prices are projected to remain relatively stable from May 2015 through to the end 

of the year, eclipsing their March 2015 highs in January 2016 with New Orleans DAP hitting 

$440 while Tampa DAP reaches $482.50. New Orleans urea clearing futures prices follow 

suit in terms of stability, in this case from June 2015 through to the end of the year, again 

rebounding in January 2016 at a price of $285 USD. A combination of data from Argus, 

FertilizerWEEK, and FERTECON allow these reference prices to be calculated, giving fertilizer 

traders, producers, and end-users enhanced price and risk management opportunities. To 

learn more, book a complimentary ZEMA demonstration. 



39


CME Lists European Cocoa Futures 

Effective March 30, 2015, CME Europe listed the following Cocoa futures for trading 

on CME Globex and for clearing submission via CME ClearPort: 

Product 

FIX/FAST and iLink: tag 1151- 

Security Group MDP 3.0: tag 6937-Asset 

FIX/FAST and iLink: tag 55-Symbol 

MDP 3.0 tag 1151 - Security Group 

Cocoa Future CCP JX 

Cocoa NY (ICE) Future CCC JX 


ZEMA regularly collects more than 100 data reports on softs. To learn more about ZEMA’s extensive data coverage, visit 


ICE Launches European Cocoa Futures and Options 

As of March 30, 2015, Intercontinental Exchange (ICE) introduced Euro Cocoa 

futures and options contracts. 

ICE introduced the new Euro Cocoa contracts, which operates in parallel with the existing 

pound-sterling London Cocoa contract. Excluding currency, the new Euro Cocoa contracts 

specification mirrors the London cocoa contract including physical settlement and will trade 

and clear at ICE Futures Europe and ICE Clear Europe. Customers are therefore able to benefit 

from cross margin offsets with the London Cocoa contract. 

Euro Cocoa Futures Contract 

Description 


Contract Months 

Contract Size 

Currency 

A physically settled futures contract on cocoa. 

EC 

March, May, July, September, December, such that ten delivery months 

are available for trading 

10 tons 

Euro 


40

Settlement 

Deliverable Growths 

Physical Delivery: Standard Delivery Unit (SDU) – bagged cocoa with a nominal 

net weight of ten tons. Large Delivery Unit (LDU) – bagged cocoa with a nominal 

net weight of 100 tons. Bulk Delivery Unit (BDU) – loose cocoa with a nominal net 

weight of 1000 tons 

Côte d’Ivoire, Democratic Republic of Congo (formerly known as Zaire), Equatorial 

Guinea, Ghana, Grenada Fine Estates, Jamaica, Nigeria, Republic of Cameroon, 

Republic of Sierra Leone, Togo, Trinidad and Tobago Plantation, Western Samoa 

at contract price. All other origins tenderable at set discounts 


Trading Tick Size 

1 EUR per ton (10 EUR) 

Options on Euro Cocoa Contract 

Description 

Option on Euro Cocoa futures contract 


Contract Months 

Expiration Date 

Contract Size 

EC 

March, May, July, September, December, such that ten expiry months are 

available for trading, subject to the option expiring before the underlying future 

12:00 on the last trading day in the calendar month preceding the 

expiry month 

One Euro Cocoa Futures Contract 

Currency 

Euros 


Euros per metric ton 

Trading Tick Size 

1 EUR per ton (10 EUR) 

Strike Price Intervals 

25 EUR per ton 


The ZEMA graph below shows the price change of cocoa futures from CME and ICE data from 

April 2014 to June 2016. The green bar indicates the price of ICE cocoa futures, in which we 

take the promptness future price as a proxy for historical price, and take the last available 

day (August 15, 2014) as the effective day of futures. The amber bar represents the price of 

CME cocoa futures, using the same method for historical value and taking the most recent 

available date as the effective date. As we can see, the CME futures price drops dramatically 

in September 2014 and remains low until June 2016. The gap between those two futures has 

remained stable thus far. To learn more about how to create similar analyses using CME and 

ICE data, book a complimentary ZEMA demo. 


41



CBOT Amends Fertilizer Cleared Swap Contracts 

Effective March 30, 2015, The Board of Trade of the City of Chicago, Inc. (CBOT) 

amended the last trade date for all December contract months for the CBOT fertilizer swap 

contracts listed in the table below from the last Thursday in the month to the Thursday 

preceding December 26. These contracts are available for clearing via CME ClearPort. 

The last trade date will remain unchanged as the last Thursday of the month for all other 

contract months. 

The affected CBOT fertilizer swap contracts are as follows: 

Contract Title Clearing Code CBOT Rulebook Chapter 

Urea (Granular) FOB US Gulf Swap UFN 45 

UAN FOB NOLA Swap UFU 46 

DAP FOB Tampa Swap DFT 47 

DAP FOB NOLA Swap DFL 48 

Urea (Prilled Bulk) FOB Yuzhny Swap UFZ 49 

Urea (Granular) FOB Egypt Swap UFG 50 

This proposed amendments change clarify the schedule of price information published 

by the price providers used for final settlement during the Christmas Day and New Year’s 

Day holiday. 



42

METALS 

Argus Launches Ferrous Scrap and Iron Ore Assessments 

for Turkey 

Effective March 6, 2015, Argus introduced the following new price series to the Argus Steel 

Feedstocks publication and data module. The following PA code details will appear in the 

DSteelFeedstocks module in the DATA/DSteelFeedstocks folder on ftp.argusmedia.com. 

Historical data is available on request from datahelp@argusmedia.com. 

PA-code 

Time 

stamp 

Price 

type 

PA0016026 6 3 0 

PA0016027 6 3 0 

PA0016028 6 3 0 

PA0016029 6 3 0 

PA0016030 6 3 0 

PA0016031 6 3 0 

PA0016032 6 3 0 

PA0016033 6 3 0 

PA0016034 6 3 0 

Continuous 

forward 

Description 

Ferrous scrap 

P&S differential 

cfr Turkey 

Ferrous scrap 

HMS1 

differential cfr 

Turkey 

Ferrous scrap 

75/25 


Turkey 

Ferrous scrap 

85/15 


Turkey 

Ferrous scrap 

90/10 


Turkey 

Ferrous scrap 

Bonus 


Turkey 

Ferrous scrap 

Bundles 


Turkey 

Ferrous scrap 

Shredded 


Turkey 

Ferrous scrap 

Bushelling 


Turkey 

Differential 

basis 

Ferrous scrap 

HMS 1-2 

80/20 cfr 

Turkey 

Ferrous scrap 

HMS 1-2 

80/20 cfr 

Turkey 

Ferrous scrap 

HMS 1-2 

80/20 cfr 

Turkey 

Ferrous scrap 

HMS 1-2 

80/20 cfr 

Turkey 

Ferrous scrap 

HMS 1-2 

80/20 cfr 

Turkey 

Ferrous scrap 

HMS 1-2 

80/20 cfr 

Turkey 

Ferrous scrap 

HMS 1-2 

80/20 cfr 

Turkey 

Ferrous scrap 

HMS 1-2 

80/20 cfr 

Turkey 

Ferrous scrap 

HMS 1-2 

80/20 cfr 

Turkey 


USD/t 

USD/t 

USD/t 

USD/t 

USD/t 

USD/t 

USD/t 

USD/t 

USD/t 

>Metals - 

Ferrous> 

Scrap 

>Metals - 

Ferrous> 

Scrap 

>Metals - 

Ferrous> 

Scrap 

>Metals - 

Ferrous> 

Scrap 

>Metals - 

Ferrous> 

Scrap 

>Metals - 

Ferrous> 

Scrap 

>Metals - 

Ferrous> 

Scrap 

>Metals - 

Ferrous> 

Scrap 

>Metals - 

Ferrous> 

Scrap 

Daily 

Daily 

Daily 

Daily 

Daily 

Daily 

Daily 

Daily 

Daily 



43

PA-code 

Time 

stamp 

Price 

type 

PA0016035 6 3 0 

PA0016061 6 8 0 

PA0016062 6 8 0 

PA0016063 6 8 0 

Continuous 

forward 

Description 

Ferrous scrap 

New cutting 


Turkey 

Iron Ore 

ViU 1% Fe 

Iron Ore 

ViU 1% Si 

Iron Ore 

ViU 1% Al 

Differential 

basis 

Ferrous scrap 

HMS 1-2 

80/20 cfr 

Turkey 


USD/t 

- USD/t 

- USD/t 

- USD/t 

>Metals - 

Ferrous> 

Scrap 

>Metals - 

Ferrous> 

Iron Ore 

>Metals - 

Ferrous> 

Iron Ore 

>Metals - 

Ferrous> 

Iron Ore 

Daily 

Weekly 

Weekly 

Weekly 



ZEMA collects more than 200 reports on various metals from around the world. This data can then be used to create 

advanced analyses and forward curves before being pushed to downstream systems. To learn what ZEMA can do for your 

business, book a free demo at http://www.ze.com/book-a-demo/. 

Argus Introduces Minor Metals Report and Data Feed 

Effective March 5, 2015, Argus introduced a new Argus Minor Metals report 

and associated data feed. The following data series has become available as DMinorMetals 

data module in /DMinorMetals folder on ftp.argusmedia.com. The scheduled data file will be 

produced daily at 7 p.m. EST. 

Three new categories have been created to accommodate this change: 

>Metals - Non-ferrous>Minor and Speciality>Europe 

>Metals - Non-ferrous>Minor and Speciality>America 

>Metals - Non-ferrous>Minor and Speciality>Asia-Pacific 

The new report covers: antimony, arsenic, bismuth, cadmium, chromium, cobalt, gallium, 

germanium, indium, magnesium, manganese flake, mercury, molybdenum oxide, 

rhenium, selenium, silicon, tantalite, tantalum, tellurium, titanium, tungsten APT, and 

vanadium pentoxide. 

Historical data is available upon request. 


Argus Lists Chinese Gadolinium Oxide Assessment 

Effective March 3, 2015, Argus introduced a new Gadolinium oxide assessment 

to Argus Rare Earths report and associated data feed. The following data series is available in 

DRareEarths data module in /DRareEarths folder on ftp.argusmedia.com. 


44

PA-code 

Time 

stamp 

Price 

type 

PA0015714 0 1, 2 0 


Continuous 

forward 


Gadolinium 

oxide min 

99.999% 

FOB China 

USD/t 

>Metals - 

Non-ferrous> 

Rare Earths> 

Asia-Pacific 

ZEMA collects more than 100 records from Argus, most of which are published daily. To learn more about the ZEMA 

solution, visit http://www.ze.com/the-zema-solutions/. 

Daily 


Argus Adds Weekly Chinese Iron Ore Assessments 

On March 3, 2015, Argus began publishing the following new price series to 

the Argus Steel Feedstocks publication and data module. The following PA code details will 

appear in the DSteelFeedstocks module in the DATA/DSteelFeedstocks folder on 

ftp.argusmedia.com. 

PA-code 

Time 

stamp 

Price 

type 

PA0015712 8 8 0 

PA0015713 8 8 0 


Continuous 

forward 


Iron ore fines cfr Qingdao 

portside – PB 61% 

Fe 

Iron ore fines cfr Qingdao 

portside – Yandi 

57.3% Fe 

CNY/t 

CNY/t 

>Metals 

Ferrous> 

Iron Ore 

>Metals 

Ferrous> 

Iron Ore 

Weekly 

Weekly 

Additionally, on March 2, 2015, Argus introduced the following new price series also to the 

Argus Steel Feedstocks publication and data module. 

PA-code 

Time 

stamp 

Price 

type 

PA0015803 0 17 1 

PA0015804 0 17 1 

PA0015805 0 17 1 


Continuous 

forward 


Iron ore fines cfr 

Qingdao 2-6 weeks - 

58% Fe average month 







USD/t 

USD/t 

USD/t 

>Metals - 

Ferrous> 

Iron Ore 

>Metals - 

Ferrous> 

Iron Ore 

>Metals - 

Ferrous> 

Iron Ore 

Thomson Reuters Launches Copper Mine Data Service 

On March 12, 2015, Thomson Reuters announced the release of a detailed 

mine-by-mine analysis of the world’s copper production to users of its flagship 

desktop, Eikon. 

Monthly 

Monthly 

Monthly 


45

GFMS Mine Economics (Copper) gathers up-to-date data from individual copper mining 

companies on their activity. It also includes the new Copper Cost service, which provides 

comprehensive global copper industry cost data. The service, now part of the GFMS Mine 

Economics Package, combines analysis plus in-depth company information on global 

copper, sourced by the GFMS base metals research team using current operating and cost 

data, sourced direct from each company. 

GFMS Mine Economics data currently covers 26 of the largest copper producing companies, 

controlling 87 copper mines across 23 countries: just over two-thirds of global copper 

production. Content includes: quarterly production trends, cash costs and total costs by 

region, an analysis of supply curve quartiles and margins, company rankings based on 

attributable production, and company pages with mine-by-mine production and cost data. 



ZEMA collects hundreds of metals data records from all over the world. To learn how ZEMA can enhance your company’s 

business processes, book a free demo at http://www.ze.com/book-a-demo/. 

LBMA Launches New Gold Price 

On March 20, 2015, the new London Bullion Market (LBMA) Gold Price, which 

replaces the long established London Gold Fix, will be launched. As previously announced, 

ICE Benchmark Administration (IBA) are the new administrators of the LBMA Gold Price. The 

intellectual property rights will be held by Precious Metals Prices Limited, a newly established 

subsidiary company of the LBMA. 

As the administrator of the LBMA Gold Price, IBA will operate a physically settled, electronic 

and tradeable auction process. The price formation will be in dollars, and prices will continue 

to be set twice daily at 10:30 a.m. and 3 p.m. (London time) in three currencies: USD, EUR, 

and GBP. Within the process, aggregated gold bids and offers will be updated in real-time 

with the imbalance calculated and the price updated every 30 seconds until the buy and sell 

orders are matched. Participants, as well as sponsored clients, will be able to manage their 

orders in the auction in real time via their desktops. The LBMA Gold Price will continue to be 

available on the LBMA website as well from a variety of major data vendors. The current 

instrument codes and tickers will remain unchanged. 


ZEMA collects more than 200 metal records, many of which contain data about gold specifically. To learn more about 

ZEMA’s data coverage, visit http://www.ze.com/the-zema-solutions/data-coverage/. 


46

SGX Launches TSI-based Iron Ore Swap and Futures 

On March 9, 2015, the Singapore Exchange (SGX) new iron ore swap and futures 

contracts, utilizing The Steel Index (TSI) daily iron ore price index published by Platts. 


The SGX TSI Iron Ore CFR China (58% Fe Fines) Index Futures and SGX TSI Iron Ore CFR China 

(58% Fe Fines) Swap will both reflect the value of “58% Fe fines” or fine ore powder containing 

58% iron content, as delivered to China’s Qingdao port on a cost and freight (CFR) basis. 


Platts to Discontinue Chinese Steel Assessments 

On June 26, 2015, Platts intends to discontinue the following four China 

domestic steel assessments: 

• SB01150 HRC Q235 5.5MM China Dom Prod Guangdong Lecong Weekly 

• SB01259 Rebar HRB400 18-25MM China Dom Prod Shanghai Weekly 

• SB01219 Seamless Pipe 219x6MM Grd8163 China Dom Prod Shanghai Weekly 

• SB01113 H-Beams China Dom Prod Shanghai Monthly 

The discontinuations will allow Platts to focus its market reporting on its remaining domestic 

price assessments and export price assessments for China. 


Platts Discontinues East Asian Hot-Dip Galvanized and Merchant 

Bar CFR Assessments 

Effective June 1, 2015, Platts will discontinue publication of the monthly price assessment of 

Hot-Dip Galvanized (HDG) CFR East Asia (SB01120). 

China has emerged as a major exporter for HDG to the region in recent years. Platts is seeking 

to refocus its market reporting on FOB China price assessments for this product. 


As well, effective the same date, Platts will also discontinue publication of the monthly price 

assessment of Merchant Bar CFR East Asia (SB01165). 

As Platts reported, wide product specifications, low liquidity, and local pricing have made 

these pan regional assessments difficult to maintain as a reflection of regional value. Market 

participants have provided feedback that the price is no longer representative and does not 

serve a purpose as an industry reference. 



47


Platts to Discontinue East Asian Wire Rod Prices 

Effective April 27, 2015, Platts discontinued publication of its monthly price 

assessment of Wire Rod Mesh Quality CFR East Asia (SB01245). 

China has emerged as a major exporter wire rod to the region in recent years and Platts has 

refocused its market reporting on FOB China price assessments for this steel product. 


HKFE Suspends Trading of Gold Futures 

Effective March 20, 2015, Hong Kong Futures Exchange Ltd. (HKFE), a subsidiary 

of Hong Kong Exchanges and Clearing Limited (HKEx), suspended trading of its gold futures. 

The decision was made after a recent review of the product, in view of a change in the London 

gold pricing mechanism. 

HKEx will review its precious metals strategy from a group perspective and redesigned gold 

futures contracts may be added to the HKEx Group’s product list in the future. 


LME and HKEx Partner with Borsa Istanbul 

On March 18, 2015, the London Metal Exchange (LME) announced that it is entering 

into two agreements with Borsa İstanbul A.S., under which Borsa İstanbul will acquire the 

LME’s stake in clearing house LCH.Clearnet, and Borsa İstanbul, the LME, and the LME’s 

parent company HKEx will partner on the dissemination of market data. 

Under the terms of the agreements, the LME will license LME steel billet settlement data to 

Borsa İstanbul, and will work with the Turkish exchange to develop future products and 

services for the steel market. Borsa İstanbul will also have the right to disseminate real-time 

pricing data from the LME and HKEx. 

Following this transaction, the LME has disposed of its entire remaining stake in its former 

clearing provider, LCH.Clearnet. 



48

CBOE to Launch MSCI Index Options 

On April 21, 2015, CBOE Holdings, Inc. plans to list options on the MSCI Emerging 

Markets Index (EEM) and the MSCI EAFE Index (EAFE). 

Options on the EEM and EAFE Indexes are the first of six MSCI Indexes planned to launch in 

2015. Later this year, the Chicago Board Options Exchange (CBOE) also plans to offer options 

on the MSCI ACWI Index, MSCI USA Index, MSCI World Index, and the MSCI ACWI 

ex-USA Index. 

Trading in options on other MSCI Indexes also offers new opportunities to hedge a variety of 

different exposures. 

• The MSCI Emerging Markets Index (EEM) captures large- and mid-cap representation 

across 23 emerging-market countries. With over 800 constituents, the index covers 

approximately 85% of the free-float-adjusted market capitalization in each country. 

• The MSCI EAFE Index (EAFE) is recognized as the pre-eminent benchmark in the United 

States to measure international equity performance. It comprises MSCI country indexes 

that represent developed markets outside of North America: Europe, Australasia and the 

Far East. The MSCI EAFE Index is calculated in US dollars on a real-time basis, and its 

values are disseminated every 60 seconds during market trading hours. 


Finance 

ZEMA excels at displaying time-series data in charts, graphs, forward curves, and more. ZEMA also collects financial 

derivatives data from a wide range of sources. For more information, visit http://www.ze.com/the-zema-suite/. 

The graph below shows a year-to-year comparison of US dollars to Singapore dollars based 

on daily exchange rates from the Federal Reserve. The years 2012-2013 show a 

similar cycle of seasonal fluctuation, but as the global economic recovery strengthened and 

the US dollar weakened, there is a noticeable reversal of that pattern in 2014. To learn more 

about how ZEMA analyzes real-time financial data, book a complimentary demo. 



CBOE Begins Listing Options on FTSE and Russell Indexes 

On February 26, 2015, CBOE Holdings, Inc. announced that it has entered into 

a licensing agreement with London Stock Exchange Group (LSEG), to develop and list options 

based on more than two dozen FTSE and Russell indexes. Under the agreement, cash-settled 

options on these indexes will now be available to trade in the United States on CBOE. In 

addition, as part of the agreement, CBOE and LSEG will collaborate on new index options 

products and investor education globally. The trading in FTSE and Russell index-based 

options on the CBOE will begin in the coming months. 

The deal includes the bellwether FTSE and Russell indexes: the FTSE GEIS (Global Equity Index 

Series), which covers 98%of the world’s investable market capitalization; FTSE EPRA/NAREIT; 

FTSE China 50; the Russell 2000 Index, which measures performance of the small-cap 

segment of the US equity market; the Russell 1000 Index, which comprises a broad large-cap 

equity segment; the Russell 1000 Value Index, which measures the large-cap equities with 

lower price-to-book ratios and expected growth values; and the Russell 1000 Growth Index, 

which measures large-cap stocks with higher price-to-book ratios and anticipated growth. 

The partnership with LSEG not only seeks to extend the range of these indexes but to introduce 

new options for US investors. CBOE intends to launch a significant new co-branded product 

every year for the full duration of the agreement, including the opportunity to list cash-settled 

index options. CBOE intends to develop options based on other FTSE and Russell index 

products globally as well. 


Finance 

Nasdaq Lists Tuttle Tactical Management US Core ETF 

On February 25, 2015, Nasdaq began trading a new exchange-traded product (ETP), 

Tuttle Tactical Management US Core ETF (Symbol: TUTT). 

The tactical nature of TUTT’s objective is a pre-determined, active strategy that responds to 

market indicators rather than attempts to use them as predictors of market direction. Under 

normal market conditions, TUTT will invest no less than 80% of its total assets in shares of 

ETPs listed on US exchanges. The total annual fund operating expenses will be 1.34%. Tuttle 

Tactical Management, LLC, the Fund’s investment sub-adviser, manages the assets using a 

tactical approach. 


Thomson Reuters Launches Monthly IPSOS Global Primary 

Consumer Sentiment Index 

On March 11, 2015, Thomson Reuters announced the launch of the Thomson Reuters/Ipsos 

Monthly Global Primary Consumer Sentiment Index (PCSI). The Thomson Reuters/Ipsos PCSI, 

measures 11 key indicators of consumer confidence and outlook as perceived by 

consumers in 24 countries. In depth analysis will be available for 12 countries including the 


50

United States, Canada, Great Britain, China, Russia, Brazil, Japan, Mexico, France, Germany, 

Italy, and Australia. 

The PCSI is the only dataset providing an aggregated global consumer sentiment series across 

24 countries. The PCSI represents a composite index of 11 questions that have been running 

monthly in 22 countries since March 2010, in Brazil since 2005, and in the United States 

since 2002. The 24 country indexes will be included free of charge to users of Eikon and 

Datastream. 

For an additional fee, users will get access to the detailed questions used in the PCSI survey. 

These questions are focused on areas such as individual’s appraisal of their homeland’s 

current economic status, their own personal economic status, and their future expectations 

for the local economy. Additional questions focus on consumer confidence, job security, and 

investments in the future. 

The monthly data output is derived from a balanced online sample that is weighed to the 

latest Census information of the general population in each country. The sample is aged 

18-64 in the US and Canada, and age 16-64 in all other countries. Of the 24 countries 

surveyed 15 are representative of the general population: Argentina, Australia, Belgium, 

Canada, France, Germany, Hungary, Italy, Japan, Poland, South Korea, Spain, Sweden, 

United Kingdom, and United States, while the remaining nine of Brazil, China, India, Israel, 

Mexico, Russia, Saudi Arabia, South Africa, and Turkey comprise more urban, educated, and 

higher income respondents referred to as “Upper Deck Consumers” relative to their country 

general population. 

Data will be released at 11 a.m. EST the second Wednesday of every month, and will be 

accompanied by a series of reports providing commentary at the country level, starting with a 

subset of the 24 countries. 


Finance 

ZEMA, ZE’s best-in-class data management solution, collects more than 75 records from Thomson Reuters on a daily 

basis. ZEMA can collect, display, and analyze data for market participants in any sector. For further information, visit 

http://www.ze.com/the-zema-solutions/. 

Bloomberg Collaborates with the African Development Bank 

to Launch African Bond Index 

On February 19, 2015, the African Development Bank (AfDB) through the African Financial 

Markets Initiative (AFMI) launched its AFMISM Bloomberg African Bond Index. Calculated by 

Bloomberg Indexes, this composite index is comprised of the Bloomberg South Africa, Egypt, 

Nigeria, and Kenya local currency sovereign indexes. 

The current index includes an African sovereign bond index comprised of the four most liquid 

bonds in Africa and three sub-indexes for different maturity ranges. To be included in the 

index, a security must have at least one year remaining to maturity and withstand price 

stability tests. Further liquid markets are expected to be added to the index this year. 


51

The composite index is available to Bloomberg Professional service subscribers via {BADB 

Index}, which includes the Bloomberg South Africa {BSAFR Index}, Bloomberg Egypt {BEGYP 

Index}, Bloomberg Nigeria {BNGRI Index}, and Bloomberg Kenya {BKEN Index} indexes. 


Finance 

ZEMA collects Bloomberg financial records—records which contain key data on North American equities, indexes, and 

currency. To learn more about ZEMA’s data coverage, visit http://www.ze.com/the-zema-solutions/data-coverage/. 

Eurex to Launch New Options Contracts on Euro Bund Futures 

As of April 20, 2015, Eurex Exchange, a subsidiary of Deutsche Börse Group, is 

launching new options contracts on the Euro Bund futures with weekly expiration dates 

(weekly options). Contracts with expiration dates on the five following Fridays will be offered 

in addition to the existing options on the Euro Bund Futures. This expanded range of options 

further diversifies Eurex Exchange’s offering of euro-denominated interest rate derivatives. 

Eurex Exchange will offer a special market-making incentive program at the market launch. 

A large number of participants, particularly the institutions currently quoting Euro Bund 

options, have signaled great interest in market making. 

The new options will have similar product specifications to the existing Bund options: the 

contracts will be physically settled and denominated in euros with a minimum price change of 

one tick (= 10 euros). Trading hours will be from 8 a.m. to 5:15 p.m. CET. 


ETFs Launched on Xetra Provide Access to US Stocks 

Effective March 23, 2015, three new db x-trackers ETFs from the product family 

section of Deutsche Asset & Wealth Management have been tradable in Deutsche Börse’s XTF 

segment on Xetra: 

Name 

Asset class 

ISIN 

db x-trackers S&P 500 UCITS ETF (Prospective DR) 

Equity index ETF 

IE00BM67HW99 

Ongoing charges 0.30% 

Distribution policy 

accumulating 

Benchmark 

S&P 500 EUR Hedged Index 

The db x-trackers S&P 500 UCITS ETF (Prospective DR) tracks the performance of 

500 large-cap companies, representing all major US industries. A company’s weighting in the 

reference index is based on its market capitalization. Investors benefit from a monthly 

currency hedge to reduce the impact of euro-dollar exchange rate fluctuations on the value of 

their investment. 


52

Name 

Asset class 

ISIN 

db x-trackers Russell 2000 UCITS ETF (Prospective DR) 


IE00BJZ2DD79 

Finance 



accumulating 

Benchmark 

Russell 2000 Index 

The db x-trackers Russell 2000 UCITS ETF (Prospective DR) measures the performance of the 

small-cap segment of the US equity universe, representing approximately 10 percent of the 

total market capitalization of Russell 3000. The reference index is calculated on a total return 

net basis which means that all dividends and distributions by the companies are reinvested in 

the shares after tax. 

Name 

Asset class 

ISIN 

db x-trackers Russell Midcap UCITS ETF (Prospective DR) 


IE00BJZ2DC62 



accumulating 

Benchmark 

Russell Midcap Index 

The db x-trackers Russell Midcap UCITS ETF (Prospective DR) provides investors with access 

to the performance of mid-cap stocks of the US equity universe. The fund tracks the smallest 

800 companies by market capitalization of the Russell 1000 Index (which follows the 

1000 largest capitalization corporations in the United States). The reference index is 

calculated on a total return net basis, which means that all dividends and distributions by the 

companies are reinvested in the shares after tax. 


ZEMA lets users stay up to date on a wide range of financial developments. ZEMA enables users to easily visualize data, 

news, and analytics in one screen, ensuring that users gain a global market snapshot. To learn more, visit 

http://www.ze.com/the-zema-suite/dashboard/. 

Source JPX-Nikkei 400 UCITS ETF Launched on Xetra 

Effective March 16, 2015, a new equity index fund from the ETF offering issued by 

Source has been tradable on Xetra in Deutsche Börse’s XTF segment. 

ETF name 

Asset class 

Source JPX-Nikkei 400 UCITS ETF (EUR hedged) 

equity ETF 


53

ISIN 

IE00BVGC6645 



accumulating 

Finance 

Benchmark 

JPX-Nikkei 400 Net Total Return Euro Hedged Index 

The Source JPX-Nikkei 400 UCITS ETF (EUR hedged) enables investors to participate in the 

performance of the JPX-Nikkei 400 Index while hedged against exchange-rate risks to the 

euro. The reference index comprises small to large-cap stock corporations along with growth 

and innovation stocks. 


UBS ETF Launched on Xetra Provides Currency-Hedged Access 

to CMCI Commodity Index 

Effective March 9, 2015, a new exchange-listed commodity index fund from the UBS Global 

Asset Management product range has been tradable in Deutsche Börse’s XTF segment: 

ETF name 

Asset class 

ISIN 

UBS ETFs plc – CMCI Composite SF UCITS ETF (GBP) A-acc 

commodity index ETF 

IE00B50XJX92 



Benchmark 

accumulating 

UBS Bloomberg CMCI hedged to GBP TR Index 

Trading currency 

British pound 

The new UBS ETF from the Constant Maturity Commodity Index (CMCI) index series enables 

investors to participate in the performance of 28 commodity contracts with up to seven 

different maturities while also benefiting from a hedge against fluctuations in the GBP/USD 

exchange rate. This covers the entire yield curve and minimizes negative roll effects. 

The weighting of the five commodities sectors included in the CMCI – energy, precious and 

industrial metals, agriculture, and livestock – is based two-thirds on economic factors (rate 

of inflation as well as GDP of the US, EU, and Japan) and one-third on liquidity (open interest 

and market volume). 


ZEMA collects more than 300 financial records from many different sources including Deutsche Börse. To stay 

informed on the latest financial developments, try ZEMA now by booking a free demonstration at 

http://www.ze.com/book-a-demo/. 


54

Finance 

UBS ETF Listed on Xetra Provides Currency Hedging to MSCI 

Canada Index 

As of March 6, 2015, a new equity index fund from the UBS Global Asset Management 

product family has been tradable on Xetra in Deutsche Börse’s XTF segment: 

ETF name 

Asset class 

ISIN 

UBS ETF – MSCI Canada UCITS ETF (hedged to EUR) A-acc 

equity index ETF 

LU1130155606 



accumulating 

Benchmark 

MSCI Canada 100% hedged to EUR TRN 

The new UBS ETF enables investors to participate in the performance of the MSCI Canada 

index and also to benefit from hedging against exchange rate fluctuations between the euro 

and the Canadian dollar. The underlying reference index of the MSCI index family is weighted 

according to free float market capitalization and tracks the performance of the Canadian 

equity market. The exchange rate risk is hedged via derivatives. 


Euronext Launches Private Placement Bonds Initiative 

Effective March 13, 2015, Euronext announced the launch of Euronext Private 

Placement Bonds (EPPB). A pan-European initiative, this new product rounds out Euronext’s 

existing private placement bond range by extending it to Alternext. It gives issuers of private 

placement bonds—Euro PP[1], High Yield[2], mutualized bonds or securitization vehicles — 

easier access to Euronext markets in France, Belgium, and Portugal, thus expanding their 

investor base. 


ZEMA collects more than 25 NYSE Euronext data reports. This data can be viewed in conjunction with data from 

many other financial, commodity, or industry sources. To learn more about ZEMA’s analytical capabilities, visit 

http://www.ze.com/the-zema-solutions/analytics/. 


55

Finance 

CME Group and TAIFEX Sign Letter of Intent for 

Cross-Border Collaboration 

Effective March 10, 2015, CME Group and the Taiwan Futures Exchange (TAIFEX) signed a 

Letter of Intent (LOI) regarding the potential listing on TAIFEX of US equity index-based 

contracts, and the exploration of cross-border collaboration opportunities and models, and 

forge greater collaboration between both exchanges. 


TMX Group and Industrial Commercial Bank of China (Canada) 

Sign MOU 

On March 25, 2015, Industrial and Commercial Bank of China (Canada) (ICBK), a Canadian 

Subsidiary of Industrial and Commercial Bank of China Limited (ICBC), and TMX Group 

announced the signing of a Memorandum of Understanding (MOU) to enhance their 

understanding of each other’s businesses and explore the possibilities of cooperation. 

Under the MOU, TMX Group and ICBK will endeavor to set a framework for communicating on 

a regular basis to evaluate business opportunities, including joint product development in 

multiple asset classes, establishing clearing, settlement, and risk management mechanisms. 



56

Other 

EIA Releases New Data Add-In Tool for Excel 

On March 18, 2015, The US Energy Information Administration (EIA) announced 

the release of a new data add-in for Microsoft Excel for Windows builds on the well-known 

Federal Reserve Economic Data (FRED) add-in from the Federal Reserve Bank of St. Louis. The 

tool allows users to update their saved spreadsheets to include the most recent data. 

The add-in creates an EIA tab in Excel, allowing researchers to find and download energy time 

series data from EIA as well as economic data series from the St. Louis Federal Reserve 

directly into a spreadsheet: 

The add-in enables users to browse categories or search on keywords to find and download 

the series information and data. Once they have fetched the data, all of Excel’s functionality is 

available to create analyses and graphics. 

The EIA and the St. Louis Federal Reserve Bank add-ins are powered by application 

programming interfaces (APIs), which, along with the add-ins, are offered free of charge. 


ZEMA collects more than 350 records from the EIA, covering petroleum products, natural gas, coal, power, and finance. 

To learn more about ZEMA’s vast data library, visit http://www.ze.com/the-zema-solutions/data-coverage/. 

Bloomberg Professional Service Adds Genscape Proprietary 

Data for Commodity Markets 

On February 24, 2015, Genscape and Bloomberg announced that the two companies will 

work together to include a selection of the proprietary, real-time Genscape commodity data 

through the Bloomberg Professional service. 

Users of the Bloomberg Professional service will be able to access a variety of Genscape’s oil, 

power, natural gas, and maritime freight data to incorporate real-time fundamentals in the 

analysis process. 

Genscape routinely accesses tens of thousands of sensors on land and sea – and near-Earth 

orbiting satellites – to provide an accurate portrait of global commodity supply chains and 

commodity and energy markets. 



57

ZEMA Adds Power, Currency, Weather, Metals, and Natural Gas Data 

Sources in March 

For 20 years, ZE PowerGroup Inc. (ZE) has consistently kept up to date on the latest in energy 

and commodity data changes. ZE collects data from vendors spanning oil, natural gas, 

electricity, weather, agriculture, and finance, including Platts, Argus, the Chicago Mercantile 

Exchange, the New York Mercantile Exchange, the Intercontinental Exchange, and OPEC. 

ZE then provides its clients with access to both public (free subscription) and private data 

reports, including reports that are collected based on clients’ specific needs. 

Since the last issue of DataWatch, ZE has added many data reports, including reports 

published by EEX, Environment Canada, EPEX, ICAP, Pattern Recognition Technology (PRT), 

Reuters, and SGX. The EEX reports cover price data on Italian and Spanish power futures. The 

Reuters reports include currency data on FX rate and yield futures and spots. Two PRT reports 

cover a 15-day ERCOT regional load forecast and a 15-day ERCOT total system load forecast. 

As well, a new Environment Canada report provides conditions data for the past 24 hours. 

All of these reports, along with other expansions of ZE’s data collection within the last month, 

have been implemented in response to a need for greater data coverage in strategic areas of 

the petrochemical, metals, coal, oil, and natural gas markets. 

For further information on these reports, visit: 

https://www.eex.com/en/market-data#/market-data 

https://weather.gc.ca/business/index_e.html 

http://www.epexspot.com/en/market-data 

http://www.icap.com/what-we-do/post-trade-risk-and-information-services/ 

data-and-information-services.aspx 

http://www.prt-inc.com/forecast/ercotzonal.htm 

http://www.reuters.com/finance/global-market-data 

http://sgx.com/marketdata 

To see the full list of ZEMA data providers, visit 


News from Data Vendors 


ZE Introduces DataWatch for iPad 

ZE PowerGroup Inc. (ZE), the developer of ZEMA, an award-winning enterprise data 

management solution for energy and commodities industries, has introduced a new way to 

stay current on the latest market data reports. By offering its monthly DataWatch magazine 

through Apple’s App Store and Newsstand apps, ZE now allows readers to subscribe to 

DataWatch on their iPads and have newly released issues automatically downloaded to their 

tablets in a simple, intuitive format. Like the web and PDF versions, DataWatch for iPad is 

entirely free of charge. 

iPad users can subscribe to DataWatch by clicking here via their iPads or by searching 

“DataWatch” in the iTunes, App Store or Newsstand apps. Subscribers will then have monthly 

issues of DataWatch automatically downloaded to their devices. DataWatch readers without 

iPads can still access the magazine online or by subscribing to the monthly DataWatch 

newsletter. For more information on the ZEMA software solution, click here. 



59

PEGAS Successfully Launches NBP Gas Spot and Futures and PSV Gas 

Future Contracts 

Leipzig, Paris, March 27, 2015 – PEGAS, the pan-European gas trading platform operated 

by Powernext, announces the successful launch of products for the British and Italian gas 

hubs on 26 March 2015. 

On the UK’s National Balancing Point (NBP), PEGAS launched physically settled Spot 

contracts, available for 24/7 trading, and Futures contracts. On Italy’s Punto di Scambio 

Virtuale (PSV), financially settled Futures (ICIS Heren) are offered for trading. Yesterday, on the 

first day of trading, transactions were concluded for both new market areas. 

When the market opened, 13 trading members were already set up for trading on NBP with 

more members, currently in the process of being admitted. The first transaction was 

concluded at 08:44 am CET on NBP Spot Within-Day at 48.00 pence per therm with a volume 

of 100,000 therms between E.ON Global Commodities and Delta Energy BV. In total, a 

volume of 250,000 therms was traded on the first trading day. 

“The successful launch was possible thanks to the great support we have received from the 

UK gas trading community, including the British authorities. We look forward to the upcoming 

launch of the first location spread between the Zeebrugge and NBP hubs later in April,” 

comments Dr. Egbert Laege, Executive Director Gas Markets of EEX Group. 

The launch of the Zeebrugge Spot and Futures is scheduled for 17 April 2015, as well as the 

location spread ZEE/NBP which will be available for trading the first time on an exchange. 

On the PSV hub, the first transaction was completed at 08:35 AM CET for April 2015 delivery 

between Axpo Italia and GDF Suez Trading for a price of 23.00 Euro/MWh and a volume of 

21,600 MWh. The total volume in PSV contracts amounted to 28,800 MWh on the first 

trading day. Also 13 members were ready for trading, further members are in the 

admission process. 

Jean-François Conil-Lacoste, CEO of Powernext, adds: “The successful launch of the PSV 

Futures serves the needs of the Italian trading community and represents an integral part of 

PEGAS’ development. We are also happy to announce that PEGAS will launch physical futures 

contracts on PSV by the end of the second quarter 2015.” 

The physical Futures will be launched alongside the financially-settled Futures, with spread 

products between the two segments, as well as a physical PSV/TTF spread. 



60

PEGAS to Offer Straight-Through Processing (STP) Registration Service 

for all Gas Derivatives Contracts 

Leipzig, Paris, March 5, 2015 – As of 19 March 2015, Powernext members will have the 

opportunity, through all major gas brokers, to directly register their over-the-counter (OTC) 

transactions as exchange transactions for subsequent clearing with European Commodity 

Clearing (ECC). For this, customers can use either Trayport © Clearing Link or EFETnet eXRP 

Straight-Through Processing automated solutions. 

Jean-François Conil-Lacoste, Chief Executive Officer of Powernext, comments: “This new and 

straight-forward solution for clearing over-the-counter transactions will answer the need of 

market participants for automated and riskless processes. Through this mechanism, it will be 

possible to automatically route transactions submitted by a broker through the exchange into 

the trading participant’s account at ECC, eliminating all manual interventions by the brokers 

and trading participants.” 

Dr. Thomas Siegl, Chief Risk Officer of EEX Group, adds: “We are glad to roll-out our Straight 

Through Processing (STP)-solutions to Powernext. With Powernext the second partner 

exchange of ECC is using the STP service that was recently enhanced to make the trade 

registration process fully automatic.” 

Dr. Egbert Laege, Executive Director Gas Markets of EEX Group, says: “This new offering will 

benefit from the strong STP experience and broker connectivity of EEX and ECC in the power 

derivatives market. This will serve the ambition of PEGAS to deliver state-of-the-art service for 

the gas derivatives markets.” 

All of the derivatives products currently offered for trading on the PEGAS platform (TTF, NCG, 

Gaspool, PEG Nord, PEG Sud and ZTP, as well as associated spreads) will be available 

through the STP solutions. On 26 March, new derivatives contracts launched on PEGAS (NBP, 

Zeebrugge and PSV) will also become available, as well as the new market area TRS on 

31 March. 

The PEGAS STP registration service will be offered by the following seven energy brokers: GFI, 

Griffin Markets, ICAP, Marex-Spectron, OTCex, TFS and Tullet Prebon. No additional fee will be 

charged to the trading participants for this service. 

About PEGAS: 

PEGAS is the central gas trading platform of EEX Group operated by Powernext. PEGAS 

provides its members with access to all products on one single platform and allows them to 

trade natural gas contracts in the Belgian, Dutch, French and German market areas. The 

product range of PEGAS covers spot and derivatives contracts for the major European gas 

hubs as well as trading in location spread products between these market areas. This setup 

enables market harmonisation and forms the leading pan-European natural gas market. For 

more information: www.pegas-trading.com 



61

About ECC: 

European Commodity Clearing (ECC) is the central clearing house for energy and related 

products in Europe. In its capacity as the central counterparty ECC assumes clearing as well 

as physical and financial settlement of transactions concluded on CEGH Gas Exchange of the 

Vienna Stock Exchange, EEX, EPEX SPOT, HUPX, Powernext and PXE, or registered for clearing 

on these exchanges. Furthermore, ECC will start clearing services for the Norwegian 

NOREXECO soon. www.ecc.de 

About Powernext: 

Powernext is a regulated market operating under AMF supervision. Powernext manages the 

natural gas activities of the EEX Group under the PEGAS brand throughout Europe, and 

operates the National Registry for electricity guarantees of origin in France. Powernext owns 

50% in EPEX SPOT, 20% in EEX Power Derivatives and 1.5% in ECC. For more information: 

www.powernext.com 

About EEX Group: 

EEX Group provides the central market platform for energy, energy related and commodity 

products and enables access to a network of over 350 trading participants. The offering of the 

group comprises contracts for Energy, Environmentals, Freight, Metals and Agriculturals listed 

at the European Energy Exchange, EPEX SPOT, Powernext, Cleartrade and Gaspoint Nordic. 

Clearing and settlement of transactions concluded or registered on the exchanges is provided 

by the central clearing house European Commodity Clearing. EEX is part of Deutsche Börse 

Group. For more information: www.eex.com 


Argus Launches WTI Houston Assessment 

Houston, February 26, 2015 - Global energy and commodity news and price reporting 

agency Argus today launches its much-anticipated assessment for West Texas Intermediate 

(WTI) crude oil delivered to Houston. 

The new price assessment, based at Magellan’s East Houston terminal, marks a milestone in 

the development of light sweet crude markets at the US Gulf coast. 

“A new spot market has emerged in the oil capital of the US,” said Euan Craik, Argus CEO 

Americas. “We have consulted widely and constructed the WTI Houston price in a way that 

reflects actual trade of a well-defined crude stream.” 

Rising production in west Texas is flooding Houston with WTI, but traders of the light sweet 

crude have been forced to value it with distant benchmarks, like Louisiana’s LLS or Midland 

WTI, both also published by Argus. The new Argus WTI Houston assessment removes the basis 

risk inherent in using a more distant price benchmark. 


62

The new assessment will be set by a volume-weighted average of all trades done during the 

day at Magellan’s East Houston terminal. This mirrors the methodology used for other Gulf 

coast crude prices published by Argus. 

Nearly 500,000 b/d of WTI from west Texas arrives at Magellan East Houston, where the 

terminal operator puts it into segregated tankage and makes spot trade possible within those 

tanks. Blended “domestic sweet” crude is not allowed into those tanks, so the trades there 

reflect a very specific quality of crude. 

Today’s launch of Argus Houston WTI complements widely-used Argus price indexes for LLS 

at St James and WTI Midland, giving each region of the US Gulf coast a local and liquid light 

sweet crude price benchmark. Traders of other sweet crude and condensate in the Houston 

area will now be able to refer to values set in the WTI market at Magellan East Houston as a 

clear signal of value. 

Magellan’s East Houston terminal currently has 4.5mn bl of crude oil storage capacity and the 

company is considering adding up to 5mn bl of additional storage capacity. 

Argus WTI Houston will be published in the daily Argus Americas Crude and Argus Crude 

reports, and will be available through Argus Direct, the company’s online platform. 

Notes to editors 

WTI refers to West Texas Intermediate crude, a light low-sulphur crude oil. Domestic sweet 

crude is also light and low in sulphur, but is often the result of blending of several crude 

grades, some of which have high levels of nickel, vanadium and acids known as TAN. Further 

details can be found at www.argusmedia.com/methodology. 

Request more information on the Argus Houston WTI and other Argus crude price 

assessments: 

Houston Gabriela Alcocer, + 1 713 968 0000, gabriela.alcocer@argusmedia.com 



63

OTC Global Holdings and EOXLive to Support Nasdaq’s Energy Derivatives 

at Launch 

Boca Raton, FL, March 11, 2015 – OTC Global Holdings LP (OTCGH), the leading independent 

commodities interdealer broker, today announced that it will provide brokerage services and 

integration to its EOXLive active markets platform for the launch of energy derivatives 

contracts on Nasdaq. 

“As part of OTC Global Holdings’ continued expansion of the EOXLive platform, we will provide 

our customers with pre-trade price transparency and straight-through-processing for Nasdaq 

energy products at the exchange launch date” said Javier Loya, chairman and CEO of 

interdealer broker OTC Global Holdings LP. “We have been very impressed with Nasdaq’s 

people and technology, which build on their existing platforms and global energy products. 

Our investment in this integration is part of our vision to provide the deepest liquidity and 

make it easier for more firms to trade and hedge commodities futures and options.” 

The project undertaken with Nasdaq is central to OTCGH’s mission to provide unmatched 

customer service and liquidity to its customers. For more information or to receive free access 

to EOXLive, visit http://www.otcgh.com/eox or contact EOXLive via 

email:operations@eoxlive.com, AIM: eoxops or phone: 877-737- 8511. 

About EOX Holdings LLC 

EOX Holdings LLC (EOX) is registered as an Introducing Broker with the National Futures 

Association (NFA). EOX delivers the EOXLive platform and services, as well as unique and 

comprehensive market data and introducing broker (IB) services. EOX Holdings LLC is a wholly 

owned subsidiary of OTC Global Holdings. For more information or to receive free access to 

EOXLive, visit http://www.otcgh.com/eox or contact EOXLive via email: 

operations@eoxlive.com, AIM: eoxops or phone: 877-737- 8511. 

About OTC Global Holdings 

Formed in 2007, OTC Global Holdings has become the world’s largest independent 

institutional broker of commodities, covering financial and physical instruments from offices 

in Chicago, Geneva, Houston, New Jersey, London, Louisville and New York. The company is a 

leading liquidity provider on CBOT, ICE and NYMEX, ranking number one amongst its peers in 

numerous derivatives contracts across biofuels, emissions, commodity index products, crude 

oil, natural gas, natural gas liquids (NGLs), metals, petrochemicals and refined products, 

power, proppants, soft commodities, and weather derivatives. The company serves more than 

450 institutional clients, including over 70 members of the Global Fortune 500, and transacts 

in hundreds of different commodity delivery points in Asia, Europe and the Americas. 

To learn more about the company, please visit www.otcgh.com, @OTCGH or go to 

https://www.youtube.com/watch?v=u5Ohwr7h3tE. 



64

MDA Introduces New Midday Model Predictor 

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. New product offerings include: 

Midday Model Predictor (MMP) 

• By leveraging relationships to current and historical observed weather data both at the 

surface and upper levels of the atmosphere, as well as the lagged relationships to other 

weather models, MDA is able to skillfully indicate, or forecast, where the next model 

forecast is headed. 

• ‘Forecasting the forecast’ is a skill that can produce great benefits when trying to project 

the direction of a market that is dependent on weather – especially with the market moving 

12z GFS Operational and 12z ECMWF Operational weather models. The Midday Model 

Predictor (MMP) is a tool that does just that. With both maps and city specific tabular data, 

the MMP delivers critical insight on how the respective models will trend. For example, 

during the winter, if the 12z GFS Operational model was released showing much stronger 

cold than compared to the 00z GFS Operational model, the market would likely see a 

notable uptick in Natural Gas prices. Through the use of the MMP, users get an early insight 

into this market driver and can position themselves accordingly. 

• In addition to maps (below), quantitative MMP data can also be provided for hundreds of 

locations across the US and Canada. This is a unique input for pricing models – whether it 

be for natural gas, power, etc. - that has worked for many when projecting market trends to 

a respective weather model run. Furthermore, historical forecast information is available for 

verification to back test any models that run internally or through ZEMA. 



65

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


Monthly Market Analysis 

Analysis 

According to data from NYMEX, crude oil prices for Brent and WTI have seesawed since they 

found their bottom in January 2015. The prices of WTI and Brent had both dropped by 8% and 

3%, respectively, since February 2015. 

Crude oil prices recovered since January 2015 to over 60 USD/Bbl a barrel, but have fallen 

again in March following a bigger than expected crude stock build in the United States that 

fueled concerns of an oversupply in the world’s largest oil consumer. 

Prompt-month WTI contracts settled at 48 USD/Bbl on March 18, 2015. Meanwhile, the 

prompt-month contract prices for Brent dipped slightly by 2 USD/Bbl from the previous month 

to settle at 59 USD/Bbl. The last 12-month averages for WTI and Brent on NYMEX dropped to 

82 USD/Bbl and 88 USD/Bbl, respectively. 

The spread between WTI and Brent (represented by the purple area in the graph above) has 

widened sharply since January 2015, and sat at 10 USD/Bbl in March 2015, which is 

4 USD/Bbl above the last 12-month average of 6 USD/Bbl. 

Monthly 

Market 


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



The average NYMEX Brent forward prices for delivery until March 2017 (represented by the 

blue line in the graph above) decreased by 6 USD/Bbl to 60 USD/Bbl, while WTI (the red line) 

fell by 4 USD/Bbl to an average of 56 USD/Bbl in the first three weeks of March 2015 for the 

next 24 months when compared to the same period in February 2015. The Brent-WTI spread 

also dropped by 2 USD/Bbl to 4 USD/Bbl (the purple area) on average for the next 

24 months. 

According to EIA’s Weekly Petroleum Status Report, ending March 20th, 2015, an 11th 

straight weekly build brought US stockpiles to 466.7 million barrels, the highest level for in at 

least the last 80 years. (EIA) With declining US crude oil imports, the supply surplus seems to 

be the most dominant factor in sliding crude oil prices. On top of the unprecedented US crude 

output and tepid global demand, Saudi Arabia has been pumping at a near all-time high of 

around 10 million barrels of crude oil per day, close to an all-time record. (Reuters) The 

current bearish market condition is set to favor the refineries as their input would be a lot 

cheaper than expected, and markets do not expect this trend to change. 


67

Henry Hub Natural Gas Forward Curve 



On NYMEX, the average price of Henry Hub natural gas contracts in the first three weeks of 

March 2015 for delivery in the next 12 months (represented above by the orange line) went 

down by 5% as temperatures moderate to average at $3.14 USD/MMbtu when compared to 

the same contracts period in March 2015 (represented by the blue line). 

Data from NYMEX suggests the spread between March 2014 to April 2016 contracts 

(represented by the purple bar) averaged at -0.05 USD/MMbtu for the next 12 months. As the 

purple bars show, the spread has a trend of slowly dwindling for the next two years. 


68

Actual Weather (AccuWeather) 



1. Monthly Temperature (AccuWeather) 

In March 2015, the temperature started to reflect the height of spring in San Diego and San 

Antonio as temperatures averaged between 13 and 19 degrees Celsius (C) throughout the 

month. New York and Chicago, on the other hand, are only emerging from the winter cold. The 

average temperature in Chicago is about 4C warmer this March compared to March 2014, 

and New York remained the same. 

In comparison to the past two-year average of March temperatures, this year’s March 2015 

felt warmer by 1C in San Diego and 2C colder in San Antonio. Chicago was 3C above the 

two-year average, and New York remained unchanged. Also, Chicago experienced the largest 

weather fluctuations among all observed cities this month, as the temperature dipped to 

-14C on March 5 and 6, and climbed to 13C on March 16. 

2. Daily Temperature (AccuWeather) 



69

Electricity: Day-Ahead Prices (ICE) 



On the ICE, March 2015 day-ahead peak electricity prices in eastern United States began to 

ebb as of March 11, 2015, in PJM, represented by APS Zone and NYISO, as represented by 

Zone A prices. PJM APS Zone prices rose from 42 USD/MWh on March 4 to 48 USD/MWh on 

March 6, with prices averaging at 45 USD/MWh throughout the rest of March. 

Prices at NYISO Zone A also averaged at 38 USD/MWh throughout the month. Similarly, 

CAISO prices remained relatively flat throughout the month, hovering at 33 USD/MWh. On the 

other hand, prices slightly increased in ERCOT North 345KV from 28 USD/MWh on March 4 

to 32 USD/MWh on March 9, stabilizing to 31 USD/MWh for the rest of the month. Warmer 

weather in all observed regions put downward pressure on prices this month. 


70

In Depth 

Why 

is 

so 

Paramount 

Crisis ? 

By Aiman El-Ramly, 

C.S.O. ZE PowerGroup Inc. 

aiman@ze.com 

As the first quarter of 2015 draws to a close, we are beginning to get used to the concept of 

cheap oil. The question on everyone’s minds, of course, is how long it will last. March has seen 

the lowest oil prices since the SemGroup implosion of 2008, dipping to $45/barrel. While 

2015 has seen highs as great as $55 for WTI, prices for the majority of year have been below 

$50. And every day, there is a new voice added to the oil price forecast. On March 30, 

Barclays called for $39 WTI in the second quarter. Still, the first quarter’s $10 (20%) swing 

indicates a huge amount of volatility and reflects the dissonance the global energy markets 

are experiencing. This problem goes well beyond a commodity price issue. Really, the 

collapse in the price of oil calls into question the stability of global markets generally, and 

challenges the interplay between commodity prices and greater global stability. 


71


In Depth 

Figure 1 - US Total Crude Production 2010-2014 

Nuclear talks in Iran, potentially resulting in the lifting of oil embargos, would allow another 

million barrels of oil per day onto the market, putting further substantial downward pressure 

on oil. The downward pressure may or may not be reversed by other hot spots in the Middle 

East, such as Saudi Arabia and Yemen, or by the continued activities of ISIS in Iraq and Syria. 

Certainly, there is limited stability in the OPEC nations. 

While, yes, it is important that Iran start participating meaningfully in the world economy, that 

is another million barrels over and above the current bumper crop. In 2014 the United States 

had the largest oil production increase in 100 years, according to the EIA. However, at half 

price oil, all that increased production was better served staying in the ground. With no 

coordinated planning of supply, the individual pursuit of the marginal barrel just means every 

barrel is worth less. OPEC is not playing nice, and oil producing nations are not doing 

themselves favors by having their most productive years in history. 

Looking at the forward price view from August 2014, before the most recent price collapse, we 

see prices north of $90 for WTI (red line in Figure 2) and north of $100 for Brent (dark blue line 

in Figure 3). However, just six months later, in February 2015, we see the forward curves down 

by more than 40% for both benchmarks (orange line in Figure 2 and light blue line in Figure 3). 


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In Depth 

Figure 2 - August 2014 vs. February 2015 forward price view for WTI 


Figure 3 – August 2014 vs. February 2015 forward price view for Brent 

“the collapse in the price of oil calls 

into question the stability of global 

markets generally” 


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What is unusual is that the curves from August 2014 and February 2015 do not converge. This 

means that the change in outlook is not merely that of a temporal market anomaly, like a war, 

but a sustained fundamental change in the way the global market considers energy as a 

commodity. If that is the case, why did it take a total market collapse for people to internalize 

the true impacts of the shale gas revolution, the supply dynamics of OPEC, or the global 

economic effects of recession? 

And to be clear, this is not just about oil; one can see a similar disconnect in natural gas and 

power markets, though maybe not as dramatic. Natural gas was misjudged by more than 

$1 (Figure 4) and power by $5 (Figure 5), which are still massive risk exposures if you are on 

the wrong side of the price curve. 

In Depth 


Figure 3 – August 2014 vs. February 2015 forward price view for natural gas 


Figure 4 – August 2014 vs. February 2015 forward price view for MISO 


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One still has to ask, in this age of unlimited data, when there is universal real-time sharing of 

global events and multi-million dollar energy and commodity trade and risk systems, how can 

the market be off by so much? How can millions of traders around the globe all miss the 

market collectively? Is there really no shared wisdom? 

In Depth 

Are Ideologies Really to Blame? 

If you were inclined to simple answers, you would say that this breakdown is the fault of 

Western style capitalism – the pursuit of economic freedoms and the wealth of nations at any 

cost (or more accurately, anybody else’s cost). Long live the memory of Adam Smith and his 

bourgeoisie (impelling the burgeoning corporate world). However, if you lived in the East 

(including East Berlin), you may say that the fault belongs to communism and an errant 

manifesto – the utopian ideal of releasing the masses from the class struggle fails to 

recognize economic realities of running a nation. Long live the memories of Karl Marx and 

Friedrich Engels. Thus, we observe in 1776, and later in 1947, the philosophical underpinning 

for war, both hot and cold, as each nation pursues Pax in the manner most befitting its 

philosophical bent. 

In the West, we see technological innovators that drive personal wealth, massive 

infrastructure, and ideological change eventually forcing government reaction. In the 

United States, these forces included the founding father, Benjamin Franklin, who became a 

wealthy publisher and was perhaps the most influential person in shaping the modern 

Western state and the ideals of freedom from imperial oppression. Thereafter, we have the 

“the change in outlook is not 

merely that of a temporal market 

anomaly, like a war, but a 

sustained fundamental change in 

the way the global market 

considers energy as a commodity.” 

energy pioneers such as Rockefeller and Edison whose technologically revolutionary 

achievements transformed the nation and produced unbelievable wealth. This wealth 

stretched railroads westward, put cars on highways, sent oil east on tankers, fueled airplanes 

and tanks, and spurred the growth of the most powerful nation in the world. The indefinite 

pursuit of $100/barrel oil while in no way restraining supply was, in hindsight, pure folly. It is 

as if the economic concept of supply and demand does not exist. 

But when the power of the wealthy infringes on the masses, when corruption becomes the 

norm and not the exception, when markets fail, and when the people go hungry, the regulator 

finally steps in. The regulator is thus the one to free the people from corporate oppression. In 


75

the words of historian James Truslow Adam on the American dream: “Life should be better and 

richer and fuller for everyone, with opportunity for each according to ability or achievement 

regardless of social class or circumstances of birth.” Sounds a lot like Marx and Engels: “In 

place of the old bourgeois society, with its classes and class antagonisms, we shall have an 

association in which the free development of each is the condition for the free development 

of all.” 

And, as is the wont of the regulator, the reaction is often overbearing and under-thought. 

Rockefeller was forced to heed the regulator. He had captured the ire of the first Roosevelt, 

who chased Rockefeller across the country in his efforts to subpoena him and apply the 

Sherman Antitrust Act of 1890, which was enacted to regulate competition in the new 

US market economy. Teddy was committed to breaking up the trusts and dismantling the 

world’s first monopoly, the Standard Oil Company. Ironically, though, Rockefeller quintupled 

his wealth as his monopolistic Standard Oil was broken up. 

In Depth 

Energizing a Nation 

It was not until after Edison’s death that the holding companies that had taken over and 

corrupted the electricity industry were confronted by the second President Roosevelt, 

Franklin D. Roosevelt. I think his mind must have been divided between the views of 

Samuel Adams and James Adam. On one hand, he needed to confront the corruption of the 

holding companies, and on the other, bring the country out of recession. He enacted the 

Public Utility Holding Company Act (PUCHA, 1935) to break up electric holding companies 

into state utilities, much the same way that Teddy had broken up Standard Oil. Today, there 

still exist many Edison companies: Commonwealth, Consolidated, and so forth. Probably the 

most famous involves the merger of Edison General Electric with Thomson-Houston Electric 

“this is not just about oil; one can 

see a similar disconnect in natural 

gas and power markets” 

Company to form General Electric (GE). Franklin D. Roosevelt also electrified the nation and 

invigorated the US economy. His New Deal included a vision of massive infrastructure 

development. He built the highways and the dams that connected a nation and powered the 

future. The establishing of the Bonneville and Tennessee Valley Power Authorities contributed 

to the federalization and ruralification of energy through cheap and abundant hydro power. 

But before he addressed the energy sector, Franklin D. Roosevelt stabilized banking by putting 

in place the Federal Deposit Insurance Corporation (FDIC), suspended the gold standard to 

support monetary reforms, passed the Gold Reserve Act to contain the economy, put in place 

the Securities and Exchange Commission (SEC) to regulate the stock market and prevent 

corporate abuses, and a host of other activities to bolster the proletariat and free the capital 


76

machine. By the time the United States was to enter World War II, the country was fully 

energized: flush with money, replete with oil, fully electrified, and gainfully employed. 

The United States reached full employment after entering World War II in December 1941. The 

Gross Domestic Product doubled immediately in the all-out effort to supply the war machine. 

The United States was the most domestically isolated, best equipped, and best supplied force 

in the world. Coming out of the War, the United States was the clear winner and the 

preeminent super power. Post war, the GI Bill (Servicemen’s Readjustment Act of 1944) 

ensured that 16 million returning veterans were housed and ready to serve in their new role of 

expanding the American middle class. 

Indeed, The US post-war era featured an economic boom, the long boom, and a sustained 

period of relative peace. Within a day of the end of WWII, the gas rationing that had existed 

to support the war effort was over, though little thought or concern was given as to where that 

supply would come from. And it is at this euphoric point in US history that a new age begins, 

leading to unprecedented prosperity for the United States, and ironically for Germany and 

Japan under the Marshall Plan. Britain and Russia would not fare as well. The greatest lesson 

arising from the war was that energy makes nations. Oil wins wars. And oil was too valuable for 

the management of it to be left to business men. The American Pax was now fully in play – 

energy security at any cost. 

In Depth 

“The greatest lesson arising from 

the war was that energy makes 

nations. Oil wins wars.” 

The Unpredictable Consequences of Innovation 

In this heyday of capitalism, prosperity and innovation reigned, as did cheap and abundant 

energy to fuel the boom. In fact, post war, there was an oil bonanza. The issue was not supply 

but how to ensure that oil would not become worthless. But coordinating supply and demand 

from the top is a tricky business – one that has never been mastered. There are just too many 

pieces, too many conflicting interesting, and too much money at stake. Oil had become the 

lynchpin to global economic development and security. The American Pax had secured cheap, 

reliable energy from the Middle East, and the legacy of the New Deal ensured a fully electrified 

and interconnected nation. This prosperity would last until the collapse of the Bretton Woods 

system in 1971 and the 1973 Oil Crisis. Again, gold and black gold colluded to turn the 

markets on their heads. 

The Oil Crisis of 1973 put the United States fully on its head with respect to oil policy. The 

United States began to spin, much like it spun in the first and second oil crises a century 


77

earlier and in every major crisis thereafter. The spin may have come from a lack of confidence 

and the fervor of Pax as the United States tried once again to ensure its energy and security. 

This security became tied to the pursuit of freedom. Energy equated to strength: economic 

strength, political strength, and strength in the war. In the absence of abundant and easy to 

access cheap energy, there was a perceived vulnerability. The United States believed this, as 

did the Russians. 

Both countries were already deep in a cold war and an armament race. The nuclear age was in 

full swing, and both countries were determined to beat the other in the number of times they 

could theoretically blow up the world. The question at the time was: who had enough 

money to beat the other in the contest of mutually assured destruction?In the United States, 

the military industrial complex was fully released. It had emerged during WWII, and it was in 

overdrive in the 1980s and ’90s. The Cold War effort indirectly led to commercial unbridling, 

the Internet, and the rise of both the technology play and the commoditization of everything 

for everyone. The baby boomers could trade stocks on America Online, buy their books on 

Amazon, then turn to Event Horizons BBS (bulletin board service) to watch their adult-only 

content on their PC Clone or Apple Macintosh Classic. In 1993, Event Horizons made 

$3.2 million gross. Amazon, on the other hand, did not turn a profit until 2001. This just goes 

to show that the downstream effects of technological innovation, market occurrences, and 

political exchanges are almost impossible to predict. Just like how video killed the radio star, 

the Internet killed the bookstore. In like fashion, errant policies and regulation can kill a 

market or destroy a foreign nation or group of nations. 

In Depth 

The Certainty of Uncertainty 

“There is no consensus on oil or 

natural gas prices today; the 

implied consensus at market 

closing is fictitious and temporal.” 

While Obama may not be a warmongering president, his term is nearly up. The next president 

may be of a different sentiment, especially with ISIS on the rise. However, it is clear to see that 

the last ill-thought war on terror only had the effect of taking terror out of the newsroom 

basement and making it primetime 24/7. In the efforts to stabilize in the name of freedom, 

personal freedoms were sacrificed, as well as countries, and a new form of global uncertainty 

was unleashed. The socio-economic mess the globe is in today is certainly the result of 

single-variable thinking in conflict resolution. The question is, what is driving us today? Is it a 

corporate/business objective or a government policy objective? 

While the US industrial military machine may be still sated from Iraq, if another nation leads 

the trade war with Asia, long run economics may come into play. The big alliance plays are 


78

happening now. Whether Brazil stands a chance in this game is doubtful. The same goes for 

any of the other lesser 80 or so oil suppliers. But Russia does have a serious opportunity. And 

they have shown they can make their mark on this market, as testified by their recent natural 

gas play with China. Given the current price of oil, maybe the gas was not discounted after all. 

In the end, we still have more questions than answers. There is no consensus on oil or natural 

gas prices today; the implied consensus at market closing is fictitious and temporal. There is 

no consensus or potential resolution to Middle East conflict. There is no clear way through the 

impasse over Crimea. There is no reasonable expectation that the Eurozone is going to climb 

out of its economic mess into the foreseeable future. So, all that being true, we all have to 

ask ourselves, what does $50/barrel oil really mean, and can we use this as a mechanism to 

move ourselves forward? Or, if the basis for energy pricing is being rewritten, what else should 

be rewritten at the same time?v 

In Depth 

About ZE PowerGroup Inc.: 

ZE is an experienced software and strategic consulting firm that combines energy industry expertise with advanced 

software development capabilities. ZE is the developer of ZEMA, a sophisticated enterprise data management and 

analysis solution built to meet the challenges of participants in energy and commodities markets. 

About ZEMA: 

ZEMA is an enterprise data management software designed for collecting data and performing complex analysis. 

ZEMA replaces fragmented data management processes with a sophisticated, unified, and automated system. Each 

ZEMA component is modular and scalable, giving clients greater flexibility when integrating it into their organizations. 

The solution is easy to use and backed by ZE’s support team around the clock. It has been ranked first in the Energy 

Risk Awards “Data Management House of the Year” category for five years in a row. In Energy Risk’s annual software 

survey and rankings, it is also consistently rated by end users as first in the “Preferred System,” “Ease of System 

Integration,” and “Customer Service” categories. 

Disclaimer: 

ZE DataWatch is a report comprised of data updates and expectations for energy and commodities markets, powered 

by ZEMA. The news contained in ZE DataWatch is for information purposes only. Although ZE PowerGroup believes 

the information in this report to be correct, the organization does not warrant the accuracy or completeness of it. 

Information in this report is not intended to provide financial, legal, accounting, or tax advice and should not be relied 

upon in that regard. ZE PowerGroup is not responsible in any manner whatsoever for direct, indirect, special, or 

consequential damages, howsoever caused, arising out of the use of this report. 


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