Using PrivateMarkets

PrivateMarkets offers a software-based hosted service designed to facilitate trade negotiations for that portion of the energy commodities market that currently trades manually.

It is securely accessible via the Internet – all that is required is a desktop PC with access to the Internet. The desktop PC used does not need to be dedicated to PrivateMarkets and can be used for other typical trader and/or office functions. Automated structured trades done by PrivateMarkets are Sarbanes-Oxley (Sarbox) compliant.

The PrivateMarketsTrade Wizard

• walks the trader through the steps required to structure each trade

• uses a set of basic trade types that have been designed by PrivateMarketsto handle the most common structuring requirements for each market served

• allows the trader to configure Trade Templates that allow recurring trade structures to be setup in advance so that typical structured trades can be completed with just a few clicks.

Using the PrivateMarketsis simple …

1 Select the commodity you wish to trade (we currently support trading electricity and trading gas – or complex trades involving both)
2 Select the Trade Type (we currently support 14 natural gas and 5 electricity trade types, with more being added)
3 Select the counterparties to which the offer should be sent from a list of all of those available. Commonly used groups can be easily configured.
4 Provide the details of the trade in response to the Trade Wizard. Import/Export from Excel is supported to make it easy to use any existing models.
5 Select whether the offer will be automatically executable within a fixed timeframe or “indicative”.
6 Click to send the offer to the selected counterparties.
The PrivateMarketstrade “blotter” and its negotiation management functions then assist the trader in quickly processing each response to the offer that is received.

The originator of an offer remains in control of the final execution — at any time, the originator can:

• kill an outstanding offer
• resend an offer
• add new counter parties
• process counteroffers, or grant hold requests

PrivateMarket’s notification features ensure that the trader knows when a relevant new offer or response is received by routing a “trade received” message to any email address.

With PrivateMarkets, composing, offering, and negotiating complex structured trades becomes an easier, less time consuming, and more productive activity.