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FAQs on transaction reporting – Question II.3.2.4

Data field (16) and (18)

The quantity required by the TRUM description to calculate both the values for fields “Total notional contract quantity” and “Estimated notional amount” is the one in field “Volume optionality capacity”.

Our understanding is that in the field “Volume optionality capacity” the Contractual Capacity shall be reported. Considering the typical structure of non-standard contracts, where Capacity is a maximum threshold for the physical offtake, and it is variable due to flexibility of deliveries, if Capacity is used as volume indication to calculate the “Estimated notional amount”, that will be overestimated in the most of the contracts, since usually a customer offtakes much less volumes than the Contractual Capacity. We would rather indicate the best estimate of the offtake in available (i.e. Total notional contract quantity) as volumes to estimate the Economic value of the contracts.

We would like to understand whether our interpretation is correct.


Answer:

As stated in the Transaction Reporting User Manual (TRUM), we understand that without a defined quantity in the contract, market participants will only be able to provide an estimated notional contract quantity that may differ from market participant to market participant.  We would expect the best available estimate of the offtake in “Total notional contract quantity” as volumes to estimate the economic value of the contracts. Where the total notional contract quantity is not known this field shall be left blank.

Please see the examples in Annex II to the TRUM.

Last update: 16/02/2016   RSS_Icon Subscribe to this Page’s RSS