Decision on market settlement timeline proposal Heather Kelley - - PowerPoint PPT Presentation

Decision on market settlement timeline proposal

Heather Kelley Director, Market Services Board of Governors Meeting General Session November 13, 2019

This proposal intends to increase the quality and efficiency of the settlement process by;

• Reducing market participant financial exposure by increasing

initial settlement statement quality

• Providing sufficient time to incorporate data changes and

resolve disputes by the next settlement statement

• Improving compatibility with third-party settlements
• Providing more accurate settlement statements in an overall

shorter time horizon with less volume of statements

• Provides flexibility in publishing invoices

Slide 2

The proposed market settlement timeline responds to customer feedback

Page 3 Slide 3

Statements published for all trade dates Statements published if necessary due to incremental changes

Disputes due

55B 12B 5B

48B

3B

T

8B

Meter data due Market price corrections

Initial statement 9M 36M 33M 18M

+22B

Disputes due

+22B

Disputes due

+22B

Disputes due

+22B

Disputes due

+14B

Current Timeline

Market price corrections 70B 9B 5B

52B

3B

T

Meter data due Initial statement 7B 11M 24M 21M

+22B

Disputes due

+22B

Disputes due

+22B

Disputes due

+22B

Disputes due

Proposed Timeline

Stakeholders are supportive of the timeline changes.

• More accurate statements at T+9B decrease financial swings

between statements

• T+7B for meter submission provides adequate time for

customer processes

• T+70B extends dispute submission timeline for customers,

enables more time for 3rd party settlements

• T+11M statement timing increases likelihood of defect

resolution for next settlement run

• T+24M final statement, no objections

Page 4

Management recommends the Board approve the proposed market settlement timeline proposal.

• Reduces market participant financial exposure with more

accurate settlement statements in an overall shorter time horizon

• Allows sufficient time to resolve disputes and make data

corrections

• Improves compatibility with third-party settlements
• Provides flexibility in publishing invoices

Page 5