EFETnet – Well Connected
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Transcript of EFETnet – Well Connected
Electronic Confirmation Matchingfor European Energy Traders
EFETnet – Well Connected
- 2 -2006 Presentation of EFETnet
The ad-hoc Response to Absense of Standards:
- 3 -2006 Presentation of EFETnet
How does Energy Trading work?
Deal negotiated by phone or arranged by broker
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Trader Trader
Broker
ETRM System(Electronic Trade &Risk Management)
ETRM System(Electronic Trade &Risk Management)
2 Deal data is transfered to ETRM Systems
Back-office StaffChecks & approves3
4 Classic solution: Trade Confirmations are exchanged by fax
5Faxed data is matched against ETRM data
Manual work, media breaks, typos, high risk COST
- 4 -2006 Presentation of EFETnet
How does Energy Trading work with the EFET Box?
Deal negotiated by phone or arranged by broker
1
Trader Trader
Broker
ETRM System(Electronic Trade &Risk Management)
ETRM System(Electronic Trade &Risk Management)
2 Deal data is transfered to ETRM Systems
Back-office StaffChecks & approves3
EFET Box EFET BoxebMS 2.0 ebMS 2.0
XML XML
New solution: Standardised exchange of XML documents using ebXML
- 5 -2006 Presentation of EFETnet
The EFETnet Mantra: „Yin-Yang-Yong“
- 6 -2006 Presentation of EFETnet
standardised
The achievement of EFET eCM: Total Interoperability
„Spaghetti Communication“- No Standard Business Process- No Standard for Data Exchnage- No Standard for Document Formats- # Converters ~ # Participants2
“Yin/Yang/Yong”:- Document Standard- Interoperable Software- No “Spaghetti” situation- # Converters = # Participants
Standardisation
- 7 -2006 Presentation of EFETnet
EFETnet eCM Users & expected Users (Nov. 2006)22 companies live or with projects started The next Wave
UBS, EWE, MVV, CNR, ICP, Delta, WinGas, GazProm,Iberdrola, Man Financial, …
>= 35 live end of 07
- 8 -2006 Presentation of EFETnet
Example of an EFETnet confirmation
Extremely fast
Electronic confirmations
sent and matched within 2
minutes
Typical
Electronic confirmations
sent and matched within
one day
- 9 -2006 Presentation of EFETnet
Counterparty and Broker MatchExample 5: Trader, Counterparty and Broker involved in eCM, Broker‘s BCN matched with own CNF and BFI, and Counterparty‘s CNF matched with own CNF. Broker Match took place at first
- 10 -2006 Presentation of EFETnet
Benefits of eCM
Management• Automate overhead to business• Standardise non competitive activities• Share costs
Legal• Increased clarity of business interactions• Standardised industry terms and templates• Speed of processing new commercial relationships
Business • Reduced operational risk• Scalability & straight through processing (STP)• Process standardisation and quality
Technical• Increased time and budget to deal with ‘higher value’ internal IT• Certified industry standard solution can be leveraged for other messages• Defined service levels
- 11 -2006 Presentation of EFETnet
papiNet Users – A typical 3-Corner Relationship
Customer
Purchase
Order
Order Confirm
ation
Invo
ice
Inventory Stock
Delivery Notes
Reservation / Order
Transport
Call-off
Paper Supplier
Printer
Stock Management
Procurement Financial Acct.
Stock Management
Production Management
Stock ManagementSales Financial Acct.
- 12 -2006 Presentation of EFETnet
Ponton X/P UsersPonton Consulting
Europe Europe Europe North America American Media, Inc. Brown Printing Corrugated Supplies Corp. Diamond State Port Corp. Graphic Communications Gruner + Jahr USA Hachette Filipacchi USA International Paper Judge Org Lands End PENN Group Quad Graphics Quebecor World R. R. Donnelley Schmidt.Com Stora Enso North America Stanton Grove Tembec Time Warner Others
A&B AG Agemasa Ahlstrom Arma Auraprint Axel Springer Verlag Barclays Capital Berberich Billerud Bopack Belgium Bopack France Burda Burgo Centrica Comunicate, Oslo Convoys Ltd. Cvörnjek Transportation Deutsche Bank Deutsche Papier EDF Trading Electrabel EMAP France EnBW ENECO ENEL E.ON UK Eshuis Essent Euro Papier Euro Rail Field Newcaslte
Gaselys Gaz de France Herma Holmen Paper Illwerke ILTE S.P.A. Inconso ISA Consultants Jenkins Shipping John J . Russell KELAG Leifheit Liberty Portugal LysLine Malmenayde Meyer’s Sohn Merrill Lynch Motorpresse Stuttgart M-Real Myllykoski Nextier News International Nordic Terminals, Ltd. Norrköpings Tidningar Norske Skog Norsk Hydro Otto Versand Paperman Paragon ID France Paragon Labels Perez Torres & Cia
PKF Pohl Logistics Polestar Group Raflatac Railog Torino Ravensburger Römer Etiketten Roto Smeets RWE Trading RWE Transportnetz Strom Sappi SCA Schlott Sebaldus Sempra Trading Södra Soporcel Spectron Group PLC St. Ives Printing Stadtwerke Düsseldorf Starlfors Sweden Starlfors Swizerland Steinbeiss Packaging Stora Enso Stukwerkers Havenbedrief Techniker Krankenkasse TIWAG Total UPM Kymmene Vattenfall Europe VKW Willmy Xerox
Spicers Paper (New Zealand)
- 13 -2006 Presentation of EFETnet
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Any Questions?
- 14 -2006 Presentation of EFETnet
Ponton ConsultingGmbH
EFETnet BV
Participant A Participant B Participant C
Software Developer Provides an industry wide licence Maintenance, Support & Help Desk
EFETnet Agreement Monthly service fee Back to back maintenance,
support & help desk Sub-licence
EFET Electronic Confirmation Agreement (ECA): bilateral agreement to exchange confirmations based on EFET Standards
Contractual framework - overview Status of EFETnet
- 15 -2006 Presentation of EFETnet
What is EFETnet ?
Independent company, owned 100% by EFET.
Aim is to provide the central infrastructure needed to enable its members to reliably and securely exchange documents within the European energy trading industry.
Peer-to-peer document-centric approach based on industry standards like EFET ECM 3.1 and ebXML.
In March 2006, EFETnet has 12 corporate customers
Initial focus on confirmation process with plans to move to scheduling, invoicing and CO2 title transfers in the future.
www.efetnet.org
- 16 -2006 Presentation of EFETnet
Further Steps in Standardisation & Implementation
Next Steps:• Commodities • Spanish Swaps• Electronic Position Matching• Nominations• EUA Registry related
process• Settlement / Clearing
- 17 -2006 Presentation of EFETnet
Expansion into neighbouring industry sectors
Traders & Brokers• Brokers: Spectron is life for 10 months, ICAP/GFI/Prebon to implement• Electronic Position Matching: Prototype bult by Dec. 06, product by July 07
CO2 Regsitries: Messaging integration developed together with CDC/DEFRA• Processes: Registry transfer requests, Registry reports• Won against SWIFT!
ETSO: Exchange of Power schedule data between European Grid Operators• ESS 3.0• Nominations
EASEE-gas: Data exchange among gas grid operators (planned)• EDIg@s, AS/2• Nominations
Exchanges: Deutsche Börse/ENDEX/Powernext• Central Matching, Clearing
Status of EFETnet
- 18 -2006 Presentation of EFETnet
For Example: EUA Registry Interface
History• Mid 2004 – an ‚API‘ was requested• Oct 05 – evaluation conducted: EFETnet, Swift, bespoke build• May 06 – questionnaire – to be completed by YOU!!!• June 06 – decision expected ?
Carbon Expo (May 2006)• A lot of interest in EFETnet for carbon• CDC keen on EFETnet GRETA/DEFRA still need lobbying
Status (Nov. 2006)• Demand identified for 6-10 national Registries• CDC implementing, integrating with Ponton X/P• DEFRA has issues CFT für Registry/messaging interface• Trading System vendors start developing interface for EUA
transfer notification• Integration with pilot users (Gaselys, Electrabel) to start inDec.
´06
Status of EFETnet
- 19 -2006 Presentation of EFETnet
Ponton Consulting takes different roles in international B2B integration projects.
SupplierCustomer
M MXMLXMLXML
ERP-System ERP-SystemTransformation /Data Mapping
Message Transfer
Internal ProcessesExternal ProcessesInternal Processes
Transformation /Data Mapping
BusinessConsulting
IT Consulting
Standardisation
BusinessConsulting
Solutions DevelopmentBack-end Integration
B2B IntegrationStandards
- 20 -2006 Presentation of EFETnet
Trading OrganisationTrading Organisation
Borderline of the EFET Box system
Internet
EFET Box
EFET Box
ETRMSystem
Match/DispatchIn Out
ETRMSystem
InOut
Audit TrailCNFs
Archive
Audit TrailCNFs
Archive
EFET Box+ architecture and development
Match/Dispatch
Trading Organisation
Trading Organisation
Trading Organisation
Trading Organisation
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Same Communication Infrastructure
- 21 -2006 Presentation of EFETnet
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