Energy Trading and Technology

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Energy Trading and Technology

• Rex Coppock Larry Jones
• Alison Stringer Raj Mehta
• Kiran Parthasarathy Nancy Tjiawi

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Agenda

• Introduction
• Overview of Energy Trading
• Operations
• Market Summary
• Opportunities
• Conclusion

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Introduction

• Challenge Partners is faced with a very dynamic
  business and technological environment and must
  be proactive in meeting the challenges necessary
  to remain competitive.

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Energy Trading Overview
Car Salesperson
Sales Manager
Finance Manager
Middle Office (Risk, Controls)
Front Office (Traders, Schedulers)
Back Office (Accounting,Credit)
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Market Summary

• Market current future
• Current Trends ( Paper and Physical )
• Major Players ( Product Lines )
• - Enron
• - Altra Technologies
• - New York Mercantile Exchange
• - Houston Street
• - Intercontinental Exchange
• Next Generation of Trading
• Exchanges versus Single Source Provider
• Variation of products offered

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Opportunities

• Problems and opportunities
• Gained Efficiencies
• Price Transparency
• Segmented Markets
• Managing Security
• Customer Service

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Opportunities (cont.)

• Structured and Exotic Transactions
• Maintaining State of the art Information
  Technology

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Conclusion

• What should Energy, Inc. do?
• Webonomics (Economies of Scale/Efficiency/Higher
  Revenue)
• Stand alone v. Partnering (3 alternatives)
• Future product offerings
• Forming an alliance with the right partners
• Dealing with cultural impact on traders
• Integration with back-office and assets
• Participation of multi-functional group in
  development of the exchange
• Implementing the proper security infrastructure
• Use of PKI (Digital Certificate Based
  Authentication)