According to Robert Wu Park, Executive Committee Director of Skadden Rothman,“The use of aggregated, independent broker data for the construction of forward curves will be avery positive development for energy merchants and the energy markets they compete within.Because they are ultimately used to perform mark-to-market calculations,incorporating independent broker data as well as model data will greatly improve the robustness of the whole process.” Park continues by saying, “In its white paper, the listeddesirable attributes in the data gathering and submission process for spot market prices as:
·
Representative
and Complete
·
Auditable
·
Robust
and Reliable
·
Consistent
·
Confidential
·
Transparent
·
Independent
and Objective
·
Clear
·
Accountable
·
Accurate
·
Maintain
Integrity
·
Documented
and Accepted
·
Timely
and Regular
All of these same attributes are applicable to the data
transmission process for forward curves.
Particularly important is the ‘independence’ attribute.
Having the data compiled by a third-partysource outside of the front office,
and then submitted to an independent data aggregator willsignificantly increase
the confidence in the data that all users have.”
About Skadden Rothman
Skadden Rothman(www.skadden-rothman.com) offers risk management, advisory and
enterprise investment system services to a broad base of retail investors
through Skadden Rothman
T-Solutions®. Headquartered in Hong Kong, the firm strives to be a notable
presence in key global markets, including North and South America, Europe,
Asia, Australia and the Middle East.
