Do you trade virtuals?
Virtual transactions in Energy Markets are sets of bids and offers submitted in the Day-Ahead Market. These transactions take financial positions without the intent of delivering or consuming physical power in the Real-Time Market (PJM.com).
The objective for many busy trading desks is to get bids into the market with as few hurdles as possible. Traders want to quickly make profitable trades without stepping on each other’s toes or overwriting a colleague’s bid or offer. This is a challenge since ISOs generally allow only one unique trade at a given location and date. Curves are allowed, but markets also have inconsistent, complex rules about what is and is not allowed in a virtual price/quantity curve.
Adapt2 ISO’s Virtual Trader module allows market participants trade virtuals with ease and efficiency. With Adapt2 ISO’s Virtual Trader, multiple traders can dynamically build virtual transaction curves with overlapping locations and without needing to know the market’s rules on curve construction. Traders can then focus on what matters.
Imagine these scenarios:
Two traders bid different MWh amounts at the same price and for the same location. Market’s usually do not allow for repeated segments at the same price. Adapt2 will automatically combine the two trades into one bid and optimize the number of curve segments used. This helps traders save on administrative fees.
Two traders bid the same MWh amounts at different prices for the same location. Adapt2 will automatically combine the two trades into one bid then order the segments based on each ISO’s specific rules. This speeds up the bidding process.
Adapt2 ISO’s Virtual Trader eliminates the need for the two traders to manually coordinate updates when submitting virtual trades. Once awards are published, Adapt2 ISO will then allocate the award MWh values based on each trader’s respective trades. Complete the solution with Adapt2’s P&L engine to update the value of each virtual trade in real time as 5 minute prices are loaded in.
Please contact email@example.com, for more information on how to:
Manage virtual positions for multiple traders across all ISOs
Dynamically structure virtual bid and offer curves according to ISO rules
Automatically allocate virtual awards to traders even when the ISO publishes a single consolidated award volume by location and interval.
Calculate Virtual P&L in real time.
We would love to set up some time to discuss this more in depth with you!