Energy Traders Join To Develop B2B Standards
Nine energy traders have teamed up to form the Energy Trading
Standards Group, an open consortium that plans to work toward
developing standards to automate the sale of wholesale energy and
to improve information sharing among traders.
One of the consortium's co-founders, HoustonStreet, also said
last week that it was extending its wholesale energy-trading
platform to Europe and would launch those operations Sept. 27.
ETSG, the new trading group, plans to develop open standards
based upon extensible markup language, or XML, considered the gold
standard for Internet commerce. Initially, the companies plan to
create standards to exchange data between online trading platforms
and for transaction/risk management systems used by wholesale
electricity and natural gas trading companies.
The consortium plans to develop standards to improve the
external exchange of transaction and related data among energy
trading partners, basically setting up a one-size-fits-all
ETSG's co-founder, Caminus Corp., joins ABB Energy Information
Systems, Automated Power Exchange, Open Link Energy, RedMeteor.com
Inc., Triple Point Technology Inc., GFInet and Sapient. Other
companies also will be encouraged to join.
"XML is rapidly becoming the key data interchange standard for
time-critical, high volume information sharing on the Web, and is a
step toward improving operational efficiency in trading systems,"
said Amini Rawji, TransCanada Energy vice president. TransCanada is
active in the energy markets.
ETSG will streamline the "deal capture" process by creating open
standards that automate the internal data exchange between
front-line traders and their company's mid- and back-office
transaction management systems. The automation process is expected
to save energy traders time and money by reducing errors on trade
ticket generation and data entry. It also will provide real-time
access to trade data and reduce the cost of building and managing
proprietary systems and connectors.
In its second announcement last week, HoustonStreet said that
Electrabel, RWE and Vattenfall, three of the top energy companies
in Europe, have invested an undisclosed amount of money toward a
liquid over-the-counter marketplace for energy trading companies.
They also plan to integrate HoustonStreet into their e-commerce
Initially, HoustonStreet, headquartered in Portsmouth, NH, will
provide traders with a single pan-European marketplace for buying
and selling electricity, rolling out the platform to different
regions in stages, kicking off the platform at the end of this
In August, HoustonStreet joined the Organization for the
Advancement of Structured Information Standards - OASIS - to bring
open standards to wholesale energy trading. Through the
independent, nonprofit OASIS, which is dedicated to cultivating XML
to simplify business practices, HoustonStreet said it wanted to
encourage industry trading efficiency.
Carolyn Davis, Houston