29 Oct 2013

LEAP BOOK-OUT TERMS Now Available

LEAP BOOK-OUT TERMS ARE NOW AVAILABLE FOR USE

October 2013 — Leadership for Energy Automated Processing (“LEAP”) is pleased to announce the publication of the October 2013 LEAP Book-Out Terms.  This “LEAP Book-Out Terms” document is available for voluntary use by participants in the physical commodities markets in the United States of America[1]. The documents can be downloaded free of charge from the LEAP website at http://www.energyleap.org/document-downloads/.

The LEAP Book-Out Terms provide a framework by which parties can document their book-outs of previously agreed physical commodities transactions.  That framework includes a discussion of handling cases where book-outs were originally agreed orally as well as cases where a book-out was originally agreed in writing or via electronic communication such as e-mail or instant message (“IM”).

The document was prepared by a Committee comprised from LEAP member companies.  LEAP and the Committee believe that the use of these terms to govern parties’ book-outs will reduce confusion, inefficiency and risk among parties in the physical commodities markets.

LEAP’s mission is to promote efficient and reliable transaction processing within the energy trading industry. More information about LEAP and how to join, including our Limited Project Participation option, is available at www.energyleap.org.

Membership in LEAP is open to energy trading, service and association entities on a nondiscriminatory basis. All members must be legal entities, not natural persons.

 


[1] The templates may require revision and further customization by market participants depending on their individual commercial and legal objectives for each transaction. Parties should consult their own legal counsel and other professional advisors when using the template to effect transactions.