Commodity Trade Management Module

The AspectCTRM suite captures physical and financial transactions performing straight-through-processing (STP) execution through to settlement and invoicing. It supports best practices in business processes for decision making across each step of the transaction life cycle with commodity trade management tools.

Commodity Trade Management Solutions From Aspect

The Commodity Trade Management Module is part of the front office module which also includes Risk Management for risk measuring, managing and reporting market and credit exposures, and Market Data for pre-trade analysis and price uploads to AspectCTRM. While many companies access trade and risk functions through our Standard and Enterprise Editions, others access only the Commodity Trade Management functions via our Lite Edition which is designed for less complex requirements for small companies.

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Trade Risk DSC Financial Physical

Best Practices In Market Risk

AspectCTRM provides best practices for managing market risk with MTM of all transactions, valuations with time-stamping; P&L in real-time; daily with MTD, YTD and daily changes; and complete risk, exposure and VaR reporting.

Trade Capture Begins the Transaction Lifecycle

  • Fast and easy initial data entry using tabbed entry screens to display and capture the minimum amount of meaningful data to register a trade. Templates can be used as required
  • Tabbed partitions in trade entry screens support the capture and management of other trade data (ie. operations, settlement) as trades progress through lifecycles
  • The ability to assign deals to deal owners via data permissions

Market Pricing Integrated with Transactional Activity

An enterprise information management strategy is critical in the success of leveraging an ETRM/CTRM system due to the time sensitive nature and accuracy of changing prices being applied to transactions and portfolios. AspectCTRM customers also subscribe to our AspectDSC Market Data & Analytics solution. AspectDSC is the decision support center for traders globally who access futures and spot prices – and chart trends for multiple commodities from sources like NYMEX, ICE, Platts, Dow Jones, CBOT, LME and others. This provides a seamless transfer of market prices used to validate trades and update positions. With the push of a button prices are uploaded from AspectDSC throughout the trading day. Many companies are manually updating this information which causes errors. Also many times corrections are missed when prices are re-released to the market as price corrections. AspectCTRM also integrates with external market intelligence providers, but the advantages of linking AspectDSC to trades as the pricing intelligence of record are unparalleled.

Real-Time Positions and Profit & Loss Reporting

One of the most critical capabilities of an E/CTRM platform is the ability to accurately detail the company’s portfolio from a physical and financial perspective. With AspectCTRM exposure reporting is intra-day and in real-time as market prices are updated. This gives enormous confidence to the decision making of traders using our AspectCTRM solution. Most vendor applications perform risk calculations over many hours at the end of the day.

As the trading day continues, AspectCTRM’s OLAP reporting tools are used to continuously update and monitor positions. P&L and positions are updated at the point of entry of each trade, so for client organizations that support T+0 or immediate trade entry, the goal of ‘real-time’ risk management is possible.

Fast-Action Closing Reports

Companies relying on AspectCTRM drastically reduce the time it takes to produce intraday and closing reports to seconds rather than hours or days, and start every day with an accurate financial picture of the entire organization. No other solution delivers reports in seconds.

Solution Benefits

  • Monitor the value of MTM, cash positions and P&L simultaneously with market fluctuations, and as deals are entered and updated. This empowering capability is surprisingly still out of reach for many energy companies using older technology or spreadsheets.
  • AspectCTRM supports a daily risk reporting process for Middle Office and Risk Managers to assess activity from the previous trading day. A daily book close process is used to allow the system to automatically calculate daily P&L changes, MTD, YTD, etc. and to snapshot positions by strategy, book, location, trader, etc. A set of customizable reports is published to facilitate the daily review.
  • Aspect Enterprise Solutions builds risk reports tailored to individual client corporations. For example, various versions of daily report have been produced that proved a quantitative assessment of the various risks in each portfolio, with drill-down/drill-around functions to allow the identification of relevant events which give rise to sudden changes in exposure and position.
  • Gain access to real-time profit and loss performance metrics, plus full transparency of costs and risks to eliminate threats and better manage trading performance.
  • Improve transaction cycle times, visibility, time loss, and process management.
  • Customize screens, set security limits on data, and view workflow and audit trails.
  • Set workflow parameters and automatic notifications to align with business processes and provide visibility.

10 Things You Should Know Before Purchasing
A CTRM System For Oil, Gas & Products

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