Electronic Counterparty Confirmation Matching Adoption

The core reason behind LEAP’s involvement in the creation and maintenance of Master Trade Agreements and General Terms and Conditions is to allow companies to simplify complicated, inefficient manual processes and even eliminate them entirely where possible.

LEAP has supported electronic confirmation matching first by providing a forum for companies to develop master agreement and confirmation templates for voluntary use but later by providing a forum for third party services like eConfirm to evaluate and respond to market requirements and efficiency demands such that they can build and improve their service offerings.  For example, for North American refined product and crude pipeline market, LEAP members have worked with eConfirm in order to detail the data elements and the allowable values for those data elements so that companies can submit trade data for use on their site.  Over time, LEAP has also provided a forum for structured discussions on the expansion of existing service offerings and to prioritize new solutions that may be developed within the eConfirm system.

LEAP also plays an educational role in raising awareness about the benefits of electronic confirmation matching through document standardization, among other process automation opportunities. In this role, LEAP members have spoken at numerous conferences and events in the United States, Canada, and Europe regarding the work that LEAP has done for the industry and shared case studies where vendors have provided a platform for automation and the industry has responded by adopting those tools and services.  LEAP has presented our points of view at events hosted by Marcus Evans, ISDA, CAPP, and API.

In addition, LEAP provided a Point of View document and held a forum on Best Practices for Master Agreement Management and Negotiation within the Physical Oil Trading Industry during the September 2012 General Meeting.  This document is provided as a reference for any industry participant interested in joining us in our expansion of the use of electronic counterparty confirmation matching.