Introduction to PrivateMarkets

1. COMMODITIES
PHYSICAL
VIRTUAL PRIVATE MARKETS
The Revolutionary Way to
Trade Electricity and Natural Gas
An Introduction to
PrivateMarkets
©copyright 2008, Private Markets, Inc.
All Rights Reserved Confidential

2. PrivateMarkets
• Automated energy negotiation and execution system for bilateral
trading of shaped energy products.
• Creates a Virtual Private Market™ optimized for the
unique requirements of physical trading and hedging.
• With PrivateMarkets, the
originator of each trade …
– customizes or shapes each
trade for their specific needs.
– selects known counterparties
for each offer.
– controls the negotiation and
execution.
– transaction privacy is
maintained.
Slide 2
©copyright 2008, Private Markets, Inc.
All Rights Reserved Confidential

3. PrivateMarkets Capabilities
• A hosted online service that creates a network of
counterparties via the Internet accessed from existing
desktop PC’s
• PrivateMarkets provides:
– Broad range of basic trade types to structure an offer.
– Intra-month or intra-hour changes in volume & price.
– Compound offers that combine the basic trade types.
– Cross-Product offers (e.g., gas + electricity).
– Linked offers (One Cancels Other, etc.).
– Saved templates for rapid specification.
– Audit trail of every transaction and all messages involved
Slide 3
©copyright 2008, Private Markets, Inc.
All Rights Reserved Confidential

4. Benefits of PrivateMarkets
• Replaces less effective voice, email, or IM trading.
• Makes shaped transactions easy to specify and trade.
• Achieves a better transaction cost over alternative methods.
• Provides better control of trading through credit and risk management.
• Enables integration with existing back-office and trading systems.
• Provides records to illustrate market conditions at time of trade.
• Produces an audit trail of all activity suitable for Sarbanes-Oxley.
• Delivers positive return without imposing change in current process.
Slide 4
©copyright 2008, Private Markets, Inc.
All Rights Reserved Confidential