The Energy Data Hub (EDH), an independent energy data processing entity, has formed a partnership with Sapient Global Markets to advance the development of the EDH platform, a secure central repository for global energy transaction data.
This partnership follows prior agreements with OTC Online and International Securities Exchange (ISE) to support EDH. Each of the three firms will contribute to EDH in a unique way, including provision of technology expertise, business development resources, and equity investment.
Collectively, the partners will enable EDH to fulfil its objectives to bring forth new market information, strengthen the ability of energy market participants to manage risks, and reduce costs of compliance with regulatory reporting requirements.
Galway Capital served as the financial advisor to EDH on the respective transactions.
The EDH is designed to provide energy market participants with characterisations of all energy market activities regardless of the nature or type of company transacting. Currently handling voluntary, anonymous transactional and market data in gas, power and oil for all types of trades from several of the largest energy merchants in the world, the EDH validates, standardises and processes the data and delivers it to subscribers via online portals, mobile applications and specific reporting schemes, such as Swap Data Repository (SDR) reporting under the Dodd-Frank Act.
Sapient Global Markets will leverage its knowledge of the capital and commodity markets to ensure the EDH provides market participants with improved data transparency and the analytical tools required to make real-time decisions based on current pricing and market trends. In addition, Sapient Global Market will work with EDH to ensure market participants can easily connect to the EDH repository and use the platform to access a variety of business apps like reporting swap data to the SDR of their choice via online portals, FERC Quarterly reporting, and industry benchmark reports.
Previously, OTC Online committed to provide its patented clearing and processing technology. In addition, ISE completed a minority equity investment in EDH that will help to fund its ongoing expansion.
Robert Anderson, president and chief executive officer of Energy Data Hub, says: “Today’s situation of dramatic regulatory and market change brings unprecedented challenges for OTC derivative and energy market participants as they seek to obtain genuine market transparency and confidence in market pricing and liquidity. EDH provides any firm transacting in energy markets a rich and diverse information resource resulting in greater clarity into an otherwise unseen spectrum of market information, while facilitating compliance with new regulatory rules and supporting ongoing improvements to the market structure.”
Arun Karur, vice president and head of commodities at Sapient Global Markets, says: “Trading organisations require real-time information and analytic capabilities to make smarter assumptions about future transactions. The EDH is designed to meet that need, while substantially improving transparency and efficiency for capital and energy market participants. We look forward to partnering on this initiative, as it is a project that is well matched to our core focus on delivering transformative business solutions through advanced technologies and business process analysis.”