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 Initial statement Current Timeline 3 B 5 B 12 B 55 B 9 M 18 M 33 M 36 M 8 B 48 B T +14B +22B +22B +22B +22B Disputes due Disputes due Disputes due Disputes due Disputes due Market price corrections Meter data due Initial statement Proposed Timeline 3 B 7 B 9 B 70 B 11 M 21 M 24 M 5 B 52 B T +22B +22B +22B +22B Disputes due Disputes due Disputes due Disputes due Market price corrections Meter data due Statements published for all trade dates Statements published if necessary due to incremental changes Page 3 Slide 3
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 3 rd 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
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