Best Practices for Energy Price Indices © Copyright 2003, CCRO. All rights reserved. 2 counterparties and between data providers and index developers. In addition, certain technological (IT and data security) and organizational safeguards should be implemented by index developers and data providers to protect this information. This may even require the development of an independent third party to collect and house such information. Within this white paper, the recommended attributes and allocated responsibilities between data providers and index developers apply to all indices, but the recommendations for index price submission processes are limited to daily, hourly, and prompt-month spot physical transactions for North American gas and power, including (physical) basis transactions. These best practices are intended to be a resource for companies that provide index developers with data. There is no implication, however, that the individual members of the CCRO will adopt or reject any or all of the recommendations herein. This white paper does not create any legally enforceable obligations or duties for the members of the CCRO or any other entity. Adoption of and adherence to any of the best practices set forth herein by any company are voluntary. The CCRO strongly encourages all companies that participate in providing index developers with data to adhere to the principles expressed in the recommendations. Companies should adopt specific best practices as appropriate based on their individual circumstances and needs. The CCRO recognizes that after the issuance of these best practices, companies will require a transition period in order to implement some of the practices herein. In addition, the best practices are not static. Index data submission and publication processes are in a rapid stage of development. The best practices may change and adapt on a continuing basis to remain relevant. The CCRO expects that best practices will evolve and further develop through the future investigations of the CCRO and the efforts and experience of the companies adopting and implementing the practices. The CCRO developed this white paper, in part, because no industry source of best practices for data submission and index construction has been available. Nothing in this white paper, however, should be interpreted as or should be taken as a commentary on historical industry practices. The CCRO drafted the white paper to provide best practices for data submission and index construction only on a prospective basis. The best practices in this white paper do not change or modify any legal or professional requirements for companies providing index developers with data and should be construed so as not to conflict with any applicable legal or professional requirements. Compliance with the best practices does not relieve any company from meeting its legal and professional obligations. Therefore, regardless of whether a company adopts, rejects, or modifies any or all of the best practices contained herein, companies should be mindful of their legal and professional obligations. The white paper is organized as follows. Section II lists and explains desirable attributes for data gathering and submission and index methodology. Section III proposes best practices for the data gathering and submission process. Best practices for the index construction process and methodology are recommended in Section IV. Contractual arrangements are discussed in Section V, and conclusion and next steps are discussed in Section VI. Exhibit A (appended) contains an example of a timeline for a daily index. Exhibit B is a template for the data submission, usage and confidentiality agreement between a data provider and the developer of a given index, and Exhibit