Marcus Evans presentation held in 2009

1. 2 nd Annual Back-Office Conference Establishing an efficient flow of information from the Front to Back Offices to minimize operational risk

3. “ The ideal transaction processing system would be a seamless entity capable of passing deal data all the way from the front office to the back with no human intervention.” Obvious, but is it cost effective and a realistic ambition? Overhauling systems that hinder essential communication between the offices

9. Draft - Operational Status Summary (Month of May-2008) By tracking Categories of operational errors over specific time periods, an organization can track operational risk / performance against total recorded transactions and thereby institute processes for improvements and focus, CATEGORY Occurrences $ Impact % of total Trend last month Wrong price 17 ($10,456) 0.68% Wrong volume 8 ($45,000) 0.32% Wrong counterpart 12 $0.00 0.48% Wrong premium 5 ($45,000) 0.20% Wrong location 7 ($76,000) 0.28% Wrong commodity 8 ($89,435) 0.32% Wrong time period 10 $56,700 0.40% Unconfirmed transaction 17 ($145,000) 0.68% Wrong settlement amount 2 ($43,000) 0.08% Un recorded transaction 3 ($34,000) 0.12% Wrong scheduled volume 5 ($76,000) 0.20% 94 ($507,191) 3.76%

14. Daily Operational Plan ( Draft for illustrative purposes ) Time Process Dependency Resource Tracking 08:00 AM Double check wire status of all accounts and reset credit Lines in systems Fed-wire / Swift report completed in SAP Back-Office group 1 Daily log report for counterpart account status to be completed 08:45 AM Option exercise Electricity and Natural Gas Option Exercise report Deal Capture Mid-Office Group 1 Daily log of exercise in deal capture system 09:00 AM Daily forecast of base load demand and load demand Weather demand report Forecasting Forecast logged in scheduling system 09:20 AM Daily unit characteristics report to be completed Unit operational report (PCI) Mid-Office Group 1 Characteristics logged in deal- capture system 09:40 AM Electricity to be scheduled by node. Natural Gas to be scheduled Production of aggregate schedule by deal capture system Mid-Office Group 1 Log of scheduling aggregation in deal capture and scheduling system 09:45 AM Day ahead financial settlement (shadow report to be completed all commodities) Financial settlement prices to be read into deal capture system Back-Office group 1 Log of settlement prices in deal capture system 09:45 AM Week ahead position report to be completed all commodities Computation of all position components Mid-Office Group 1 Position components logged in system by date