Hello EnergyInterop,
If you missed the call today, Bill Cox requested that we make specific suggests for changes. Below is my attempt to do that. I request the same for any comments and replies. Toby’s done a great job in synthesizing the discussion, but we should help
by being more specific. I suggest that including specific sentences/words is the best way to alter the specific language on the table. Without the specifics, your comments will provide general guidance to the editors but may not actually change the language.
Here are some requests on the Market Language section.
Thanks,
Dave
Change line 473 WD8
From: Market definitions are as used in Real Options trading in existing markets.
To: Transaction definitions are based on equity and futures trading terminology from existing financial markets.
Note: I suggest this change because (a) “Real Options” is a term gaining favor in business capital budgeting (URL 1 below) and (b) because I envision that most of the transactions will be more like a futures (two-sided obligations) contract than an options
(right / obligation pairs) contract.
Insert after 473 WD8
Insert: This specification is intended to support messages that operate within a standing agreement between two parties as well as the exchange of standardized contracts between anonymous parties in a structured market.
Note: I suggest this because it may make the use of terms like contract/etc less threatening.
Insert after 473 WD8
===Start===
Definitions:
- Contract: An exchange of promises with a specific remedy for breach.
- Standard contract: A contract with predefined roles and terms maintained by a third party.
- Offer: A request for a specific exchange (price, quantity, etc) under the terms of a contract. An offer may have a valid period where the party making the offer is obligated to make the exchange if a second party agrees to the offer.
- Bid Offer: The offering party is offering a financial promise for an energy behavior promise.
- Ask Offer: The offering party is offering an energy behavior promise for an energy promise.
- Request: Is a call by a party for one or more Offers.
- Order: A request for a certain quantity of energy behavior under the terms of a previously executed contract.
===End===
Note: I offer this change partly as devil’s advocate. I was uncomfortable with the word “contract” during our discussion today. I like the suggestion on the call made by Bill & Ed which is this. Let’s not get caught up on choosing the right term until
we know what we are trying to name. I don’t know if we will need all 7 terms I describe above, but it is easier to cut/edit than to add.
David Wilson
Enterprise Solutions Portfolio Manager
Trane Commercial Systems
Ingersoll Rand
Office: +1.651.407.4168
Mobile: +1.612.741.2759
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