---------------------- Forwarded by Phillip K Allen/HOU/ECT on 10/09/2000 02:00 PM --------------------------- Richard Burchfield 10/06/2000 06:59 AM To: Phillip K Allen/HOU/ECT@ECT cc: Beth Perlman/HOU/ECT@ECT Subject: Consolidated positions: Issues & To Do list Phillip, Below is the issues & to do list as we go forward with documenting the requirements for consolidated physical/financial positions and transport trade capture. What we need to focus on is the first bullet in Allan's list; the need for a single set of requirements. Although the meeting with Keith, on Wednesday, was informative the solution of creating a infinitely dynamic consolidated position screen, will be extremely difficult and time consuming. Throughout the meeting on Wednesday, Keith alluded to the inability to get consensus amongst the traders on the presentation of the consolidated position, so the solution was to make it so that a trader can arrange the position screen to their liking (much like Excel). What needs to happen on Monday from 3 - 5 is a effort to design a desired layout for the consolidated position screen, this is critical. This does not exclude building a capability to create a more flexible position presentation for the future, but in order to create a plan that can be measured we need firm requirements. Also, to reiterate that the goals of this project is a project plan on consolidate physical/financial positions and transport trade capture. The other issues that have been raised will be capture as projects on to themselves, and will need to be prioritised as efforts outside of this project. I have been involved in most of the meetings and the discussions have been good. I believe there has been good communication between the teams, but now we need to have focus on the objectives we set out to solve. Richard ---------------------- Forwarded by Richard Burchfield/HOU/ECT on 10/06/2000 08:34 AM --------------------------- Allan Severude 10/05/2000 06:03 PM To: Richard Burchfield/HOU/ECT@ECT cc: Peggy Alix/HOU/ECT@ECT, Russ Severson/HOU/ECT@ECT, Scott Mills/HOU/ECT@ECT, Kenny Ha/HOU/ECT@ECT Subject: Consolidated positions: Issues & To Do list From our initial set of meetings with the traders regarding consolidated positions, I think we still have the following issues: We don't have a single point of contact from the trading group. We've had three meetings which brought out very different issues from different traders. We really need a single point of contact to help drive the trader requirements and help come to a consensus regarding the requirements. We're getting hit with a lot of different requests, many of which appear to be outside the scope of position consolidation. Things left to do: I think it may be useful to try to formulate a high level project goal to make it as clear as possible what we're trying to accomplish with this project. It'll help determine which requests fall under the project scope. Go through the list of requests to determine which are in scope for this project and which fall out of scope. For those in scope, work to define relative importance (priority) of each and work with traders to define the exact requirements of each. Define the desired lay out of the position manager screen: main view and all drill downs. Use the above to formulate a project plan. Things requested thus far (no particular order): Inclusion of Sitara physical deals into the TDS position manager and deal ticker. Customized rows and columns in the position manager (ad hoc rows/columns that add up existing position manager rows/columns). New drill down in the position manager to break out positions by: physical, transport, swaps, options, ... Addition of a curve tab to the position manager to show the real-time values of all curves on which the desk has a position. Ability to split the current position grid to allow daily positions to be shown directly above monthly positions. Each grouped column in the top grid would be tied to a grouped column in the bottom grid. Ability to properly show curve shift for float-for-float deals; determine the appropriate positions to show for each: Gas Daily for monthly index, Physical gas for Nymex, Physical gas for Inside Ferc, Physical gas for Mid market. Ability for TDS to pull valuation results based on a TDS flag instead of using official valuations. Position and P&L aggregation across all gas desks. Ability to include the Gas Price book into TDS: Inclusion of spread options in our systems. Ability to handle volatility skew and correlations. Ability to revalue all options incrementally throughout the trading day. Approximate delta changes between valuations using instantaneous gamma or a gamma grid. Valuation of Gas Daily options. A new position screen for options (months x strike x delta). TBD. Inclusion of positions for exotic options currently managed in spreadsheets. Ability to isolate the position change due to changed deals in the position manager. Ability to view change deal P&L in the TDS deal ticker. Show new deal terms, prior deal terms, and net P&L affect of the change. Eliminate change deals with no economic impact from the TDS deal ticker. Position drill down in the position manager to isolate the impact of individual deals on the position total in a grid cell. Benchmark positions in TDS. Deployment of TDS in Canada. Currency and volume uom conversions. Implicit and explicit position break out issues. -- Allan. PS: Colleen is setting up a meeting tomorrow to discuss the direction for transport. Hopefully we'll know much better where that part stands at that point.