Common use of Valuation frequency Clause in Contracts

Valuation frequency. The Middle Office performs daily valuation of the Company’s Supply portfolios by marking-to-market each transaction. The valuation of those transactions that are difficult to value or are valued outside of the Risk Management and Trading Systems may be estimated for daily purposes. Such transactions must be valued at least weekly. A list of all transactions that reside outside of the Risk Management and Trading Systems will be distributed by the Middle Office Manager on a monthly basis to the Chief Risk Officer, Supply / Trading and Marketing Officers, Trading Leaders and Chief Financial Officer / Chief Operating Officer. An example of a transaction that would fit into this category is a financial derivative whose price is not readily available from standard publications or other industry sources. A digital (a.k.a. binary) option with no published pricing would be a specific example.