Supporting Risk Management and Renewable Energy Adoption for Commodities Trading Firms

We deliver everything required for energy and commodities trading firms to adapt to changing markets, access more powerful analytics, and rapidly adopt new instruments.

Challenges

Lack of support for exotic instruments, incomplete risk management processes, complex physical assets, disconnected legacy systems, and fragmented manual workflows

Solution

Configurable financial instrument definitions, cross-asset risk and reporting applications, and a broad range of integration points, all built on cloud-native technology

Result

Accelerated deployment for new instruments, timely analytics, and data consistency across the entire portfolio

Empowering Firms to Increase Transparency and Efficiency

Energy and commodities trading firms face unique challenges – from working with complex physical assets and managing power purchase agreements to adopting new renewable energy sources – but legacy technology and fragmented workflows are holding them back.

We help you gain a comprehensive, real-time view of the markets and your holdings, so your traders, risk professionals, and quant developers can focus on innovation and gain an edge in these volatile markets.

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Success Stories

Over the years, our solutions for application development, cloud migration, and risk management have helped energy and commodities trading firms overcome business and technology challenges and accelerate time to value. Here are some of the highlights.

Challenge 

Replacing in-house legacy tools with a more flexible cloud-based system to easily adapt to changing markets and requirements

Solution

Connecting Beacon to existing internal data feeds and extending functionality for full front-to-back workflow

  • Pre-trade workflows with seamless transitions to live trading
  • Exchange reconciliation and positions limits
  • Trade confirmations and regulatory reporting
  • Product extensions to price and trade Renewable Energy Certificates

Result

Delivery of a full range of energy risk management solutions to other producers, consumers, and market participants

Challenge

Expanding range of products that can be traded and incorporating new and exotic financial instruments

Solution

A cloud-based technology platform, integrated development environment, and powerful array of front-office applications

  • Automation of current workload to free up quant resources
  • Rapid pricing and trading of new products through Beacon Quote
  • XVA tools for deeper and ad-hoc risk analysis
  • Transparent source code for proprietary extensions

Result

Faster expansion into new products and markets, enabling greater focus on areas of competitive advantage

Challenge

Expediting development and deployment of innovative applications for customers to power new energy solutions

Solution

Cloud-based developer platform and powerful dependency graph technology

  • Accelerated development and deployment of web-based applications
  • Greater experimentation and collaboration with customers
  • Large-scale data and analytics processing
  • Transparent source code for proprietary extensions

Result

Ability for customers to move to lower-carbon energy solutions faster and with greater control and reliability

Challenge

Integrating proprietary models to manage the increasing complexity of energy trading

Solution

Cloud-based commodity trading and risk management platform with an integrated developer environment

  • Ability to embed proprietary quantitative models into your trading solution
  • Incorporation of non-standard energy contracts
  • Accelerated development and deployment of new applications
  • Transparent source code to take ownership of your full stack

Result

Improved portfolio visibility, governance and workflow controls, and risk and exposure management

Challenge

Incorporating more renewable energy and decentralized generation into portfolios to increase flexibility and sustainability

Solution

Building on top of core solution to incorporate broader variety of renewable energy instruments and contracts

  • Ability to set up and model complex trades and new instruments
  • Elastic compute for large-scale risk calculations
  • Improved risk models for live, near-real-time VaR calculations
  • Transparent source code for proprietary extensions

Result

Implementation of full lifecycle valuation of deals in less than 12 months, enabling expansion into new markets and service

Challenge

Integrating and customizing trading analytics with existing commodities trading and risk management data

Solution

Building on top of core solution to add proprietary functionality and enhance enterprise intellectual property

  • Sophisticated risk analytics (VaR and XVA) available out of the box
  • Faster deployment with seamless cloud infrastructure integration
  • Customized analytics and faster response to commercial requests
  • Ability to facilitate extensions with transparent source code

Result

Ability to run VaR on financial trading portfolio just one week after the start of the pilot project, supporting expansion to new markets

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