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NPRR #438 · Revision Request

NPRR438  Additional Minimum Counter-Party Qualification Requirements, Including Risk Management Capability Requirements

Approved sponsor ERCOT posted 2012-01-24 ercot.com
ReasonTo reduce risk in the ERCOT market and to satisfy expected Commodities Exchange Act exemption requirements. These requirements will also make the ERCOT market more consistent with other Independent System Operator requirements.
Created2012-02-23
Approved2012-07-17
Sections Affected
1.3.1.116.11.4.116.16(new) 16.16.1(new) 16.16.2(new) 16.16.3(new) Attachment J(new)
Summary
This Nodal Protocol Revision Request (NPRR) establishes minimum requirements for Counter-Parties to participate in the ERCOT markets. These requirements are in addition to other requirements currently defined in the Protocols. Specifically, Counter-Parties must certify that they: (1) Have appropriate expertise in markets; (2) Have appropriate market operational capabilities; (3) Meet minimum capitalization requirements; and (4) Have risk management capabilities with respect to operating in the ERCOT markets. In addition, this NPRR will require ERCOT to verify the risk management framework for specified Counter-Parties.
Timeline