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Market Compliance

Material Error Monitoring

Overview

Material Error Monitoring is designed to:

Estimate the impact and materiality of a Settlement Error;
Monitor error levels over time; and
Estimate the contribution to overall market errors made by individual Parties and their Agents.

The process also helps us rank customer performance in the market and identify operational issues.

Why is it used?

Material Error Monitoring provides assurance to Panel committees and other market participants that a Performance Assurance Party’s contribution to the error is quantified and the impact of such errors is established. This technique complements the BSC Audit, Technical Assurance, Error and Failure Resolution and Trading Disputes processes.

The PAB has a set of reporting requirements used to monitor materiality.

How does the process work?

We use the Material Error Monitoring process to analyse settlement data and supplementary data to estimate and track identified material errors. We can model and communicate the impact of identified settlement errors to the Performance Assurance Board and/or Trading Disputes Committee to help them make decisions. It also enables us to provide estimated error contribution to customers confidentially so they can monitor their progress in resolving errors.