Issues

NPRR241

Summary
Action
Voting Record
Background
Key Documents

Summary

Title	Aggregate Incremental Liability (AIL) Calculation and Credit Reports Publish Corrections
Next Group
Next Step
Status	Approved on 09/21/2010
Effective Dates	12/01/2010 All sections except for Section 16.11.4.7(3)

Action

Date	Gov Body	Action Taken	Next Steps
09/21/2010	BOARD	Approved
09/02/2010	TAC	Recommended for Approval	BOD consideration
08/19/2010	PRS	Recommended for Approval	TAC consideration
07/22/2010	PRS	Recommended for Approval	PRS consider the Recommendation Report and Impact Analysis
06/17/2010	PRS	Referred	WMS consideration

Date

Gov Body

Action Taken

Next Steps

09/21/2010

BOARD

Approved

09/02/2010

TAC

Recommended for Approval

BOD consideration

08/19/2010

PRS

Recommended for Approval

TAC consideration

07/22/2010

PRS

Recommended for Approval

PRS consider the Recommendation Report and Impact Analysis

06/17/2010

PRS

Referred

WMS consideration

Voting Record

Date	Gov Body	Motion	Result
09/21/2010	BOARD		Passed
09/02/2010	TAC	To recommend approval of NPRR241 as recommended by PRS in the 8/19/10 PRS Report with a recommended priority of Medium for the proposed grey-box language.	Passed
08/19/2010	PRS	To endorse and forward the 7/22/10 PRS Report with a recommended priority of Medium for the proposed grey-box language and Impact Analysis for NPRR241 to TAC.	Passed
07/22/2010	PRS	To recommend approval of NPRR241 as amended by the 7/21/10 WMS comments and as revised by PRS.	Passed
06/17/2010	PRS	To refer NPRR241 to WMS	Passed

Date

Gov Body

Motion

Result

09/21/2010

BOARD

Passed

09/02/2010

TAC

To recommend approval of NPRR241 as recommended by PRS in the 8/19/10 PRS Report with a recommended priority of Medium for the proposed grey-box language.

Passed

08/19/2010

PRS

To endorse and forward the 7/22/10 PRS Report with a recommended priority of Medium for the proposed grey-box language and Impact Analysis for NPRR241 to TAC.

Passed

07/22/2010

PRS

To recommend approval of NPRR241 as amended by the 7/21/10 WMS comments and as revised by PRS.

Passed

06/17/2010

PRS

To refer NPRR241 to WMS

Passed

Background

Status:	Approved
Date Posted:	May 26, 2010
Sponsor:	Vanessa Spells, Credit Manager
Urgent:	No
Sections:	16.11.4.4, Determination of Counter-Party Aggregate Incremental Liability 16.11.4.7, Credit Monitoring and Management Reports
Description:	This Nodal Protocol Revision Request (NPRR): 1. Updates AIL calculation to reflect Max (Average Daily Transaction Extrapolated (ADTE) during the previous 60-day period) instead of ADTE to match Estimated Aggregate Liability (EAL) calculation. 2. Removes Flowgate Rights-related Credit Monitoring and Management Reports. 3. Corrects Credit Monitoring and Management Reports format from Extensible Markup Language (XML) to Microsoft Excel (XLS) format. 4. Updates the posting requirements of Future Credit Exposure (FCE) Details Reports.
Reason:	1. The AIL is intended to calculate the incremental liability incurred by a Counter-Party based on more recent estimates to the extent that the EAL fails to account for such liability. Specifically, the AIL determines the amount by which the Real-Time Liability (RTL) estimate exceeds the corresponding liability calculated by the EAL for a comparable period. Currently, the formula prescribed in the Nodal Protocols compares the RTL with the ADTE. However, since the EAL calculation uses the Max (ADTE during the previous 60-day period) and not simply the ADTE, the change is needed to reflect the actual incremental liability. 2. Based on recently approved revisions to Nodal Protocol Section 7.3.1.2, Defined Flowgates, there are currently no defined flowgates. Hence the Credit Monitoring and Management Reports related to flowgates are being removed from the list. 3. Credit Monitoring and Management Reports format was incorrectly listed as XML where as it is actually supposed to be Microsoft XLS format. The FCE Details Reports are large and resulting into system constraints to generate them in time for posting.