Procurement, Supply and Installation of Clearing System for a Clearing Institution 341 views

Clearing system for a clearing institution

Background

Tetra Tech is the implementer of the Energy Security Project which is a 5-year project funded by the United States Agency for International Development.

The purpose of the ESP is to enhance Ukraine’s energy security. Improving the energy legal and regulatory environment and increasing the resilience of energy supply will help USAID to achieve broad-based, resilient economic development as a means to sustain Ukrainian democracy. Providing assistance for the creation and development of free market mechanisms is the main goal of ESP. The assistance to key energy institutions supports the’ implementation of an essential component of USAID’s Ukraine Country Development Cooperation Strategy.

The ESP will improve the ability of the Government of Ukraine to provide more affordable, reliable, resilient and secure energy to its citizens; assist the Government of Ukraine to integrate into European energy markets by helping key government agencies and the energy regulator to meet EU energy acquis requirements, including the Third Energy Package; improve energy security establishing competitive energy markets in electricity, natural gas and district heating sectors; and increase energy supply in Ukraine by facilitating private sector-led energy investments in, and increasing production of renewable energy sources.

For a long period, Ukraine was lacking clearing or guaranteed settlement at various commodity markets (including electricity and natural gas market) and this caused huge accumulation of debts, namely at electricity markets. As of August 2019, the SE Energorynok (Ukrainian single buyer entity for electricity market has accumulated 30,9 bln uah of debts due to absence of guaranteed settlement and non-payments). In July 2019, the new wholesale electricity market was launched, it includes several segments, including day ahead and intra-day markets, balancing and bilateral markets, however only day ahead, intra-day and balancing market have guaranteed pre-paid settlement. The natural gas market still misses proper settlement, as well as other commodity markets. The ESP considers proper and guaranteed settlement as an important part of energy security of the Ukraine, that is why the establishment of the clearing system is a key goal.

By “clearing”, we mean the act whereby a central counterparty steps in and becomes a legal counterparty to the buyer and seller, respectively, of an original transaction. Thus, the original counterparties will have no direct exposure towards each other, but only exposure to the central counterparty (CCP or Clearing House).

Typically, the CCP will require collateral (cash and/or securities) from the original counterparties in order to mitigate the risk of either counterparty failing to settle its contractual obligations.

Typically, the original counterparties will post collateral (cash and/or securities) to the CCP in order for the CCP to mitigate its risk in case either of its counterparties’ defaults.

Objectives

The objective of this project is procurement, supply and installation of the clearing system software


Overall system description

The features of the new Clearing System Software are the following:

  • • Has the opportunity to serve unlimited amount of exchanges and other trading platforms (MTF, OTF);
  • • Enables on-line and real-time interaction with exchanges and other trading platforms;
  • • Enables on-line and real-time interaction with the Transmission System Operator (TSO), payment systems and trade-repository;
  • • Ensures technology of on-line interaction with clearing participants via standardized messaging technologies;
  • • Fully fledged clearing services as a Central Counter Party (CCP) that maintains risk management module;
  • • Allows clearing institutions to comply with international regulations and standards EMIR, MiFID 2, REMIT, etc. (optional);
  • • Is intuitive and easily learned by the parties involved.


System Requirements

Technology

  • • Proven, highly reliable, solution, based on efficient technologies and successfully implemented;
  • • System runs on all major platforms;

Architecture

  • • System comprises three architecture layers: database, application server, interfaces;
  • • System is based on open system architecture (allowing for customization and plug and play extension with additional modules);
  • • System provides full audit trail for actions that are generated by users of the System or the System itself;
  • • System user interface can be translated into Ukrainian.

External interfaces

  • • System facilitates links to external systems incl. Exchanges, TSO, payment systems, trade data providers;
  • • Provided customer interfaces are user-friendly “thin” client based on standardized web browser;
  • • Communication with external systems/entities is based on XML, SWIFT and FIX standard messaging;
    • Assurances of confidentiality, integrity, availability and auditability of data – anything that happens in the system.
    • System can generate reports and download for importing into internal systems in multiple formats (XML, CSV, HTML, etc.)

Scalability

  • • System is scalable to handle transaction volumes or number of accounts on CCP level

Proposal Conference

A proposal conference will be held virtually (Webex or Skype) on January 22, 2021 at 14:00 to provide interested offerors an opportunity to learn more about the Energy Security Project and to ask any questions about this RFP and the solicitation process. Tetra Tech welcomes any organization to attend this proposal conference. Pre-registration to attend the proposal conference is required.

  • Please email your registration request and any advance questions by January 8, 2021 14:00 to [email protected]

Written notes from the proposal conference will be provided electronically to all registered offerors, including those offerors who submitted written questions prior to the proposal conference, but were unable to attend the proposal conference in person.


Submission of Proposals

  • All proposals are due on February 5, 2021 by no later than 14:00 local time in Ukraine. Proposals must be submitted via e-mail at the address [email protected] in the following formats: Adobe Acrobat and Microsoft Word and/or Excel.

All proposals must fully respond to the Technical Specifications enclosed as Attachment A and must include quotes in the format provided in the Attachment B – Table 1 Detailed Cost Proposal.

Proposals received after the above-stated due date and time will not be considered for this procurement.

  • To help us track our procurement effort, please indicate in your email where (vacanciesinukraine.com) you saw this tender/procurement notice.


Questions and Clarifications

  • All questions or clarifications regarding this RFP must be in writing and submitted, in English, to [email protected] on January 8, 2021 no later than 14:00 local time in Ukraine.

Questions and requests for clarification, and the responses thereto, will be circulated to all RFP recipients.

Only written answers from ESP Procurement Office of Tetra Tech will be considered official and carry weight in the RFP process and subsequent evaluation. Any answers received outside the official channel, whether received verbally or in writing, from employees or representatives of Tetra Tech, or any other party, will not be considered official responses regarding this RFP.

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Tetra Tech is a leading provider of consulting and engineering services. The Company supports government and commercial clients by providing innovative solutions focused on water, environment, infrastructure, resource management, energy, and international development. With more than 18,000 associates worldwide, Tetra Tech’s capabilities span the entire project life cycle.

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