Flett Exchange has established daily settlement prices for New Jersey Solar Renewable Energy Certificates SRECs. This settlement price is the only published price for the daily value of NJ SRECs. The settlement is derived from the competitive open marketplace run by Flett Exchange on its electronic trading platform. The prices are the result of competition by over 500 Flett Exchange customers. All orders are actionable which reduces the ability of participants to push prices without actually buying or selling. All buying and selling is done through the Flett Exchange clearing process which verifies price by actual checks or wire transfers. All participants must adhere to the Flett Exchange user agreement which protects buyers and sellers and establishes a fair and competitive market.
The settlement price is much needed since the Office of Clean Energy OCE trading statistics are inaccurate if they are being used to determine spot SREC prices. The OCE statistics use all of the data submitted when buyers and sellers transfer srecs through the State sponsored registrar. The prices are not verified, long term deals are included, and double counting on all price levels make the weighted average price significantly lower than the spot prices. Solar developers need accurate and timely SREC prices to make investment decisions.
Flett Exchange daily settlement prices are derived from the following inputs from the Flett Exchange electronic SREC marketplace:
FLETT EXCHANGE, LLC “SETTLEMENT PROCEEDURES”
THE FOLLOWING ARE THE FACTORS THAT DETERMINE THE “SETTLEMENT PRICE” ON ALL FLETT EXCHANGE MARKETS:
1. The weighted average price of all trades done on the Flett Exchange Trading Platform in the 24 hour trading session. The session is between 5pm on the preceding day and 4:49:59 pm on the day in which settlement is being determined.
2. If there are no trades done during the session in question then the following will determine settlement:
a. The settlement will be the same as the previous session IF the previous session settlement is greater than the bid or less than the offer posted during the last 5 minutes of the session.
b. If there are no trades and the bid is greater than the previous session’s settlement then the settlement will be the bid price.
c. If there are no trades and the offer is less than the previous session’s settlement then the settlement will be the offer price.
d. Submissions of bids and offers to be considered for settlement: Bids and offers will only be considered for settlement purposes if they are entered onto the Flett Exchange trading platform 5 minutes prior to the end of the trading session(prior to: 4:55pm)
The “Flett Exchange SREC settlement or index” is derived from proprietary information that is property of Flett Exchange, LLC. Under no circumstance is anyone or entity allowed to refer to the “Flett Exchange, LLC settlement price or Index” without permission of Flett Exchange, LLC
The “Flett Exchange settlement procedure”, “ Flett Exchange settlement”, ” Flett Exchange Index” are all copyright of Flett Exchange, LLC.
Copyright Flett Exchange, LLC 2009