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CTRM Conference

Published by Gary Vasey
The CTRM Conference scheduled for October 22nd, 2015 and kindly sponsored by Bronze sponsor – Scalable, is seeking speakers. The theme is around value and includes all aspects of CTRM and the broader CTRM arena – big data, compliance, social media, treasury, technologies, analytics, selection, implementation and much more. We are seeking speakers from the end user community as opposed to vendors or consultants. If you might be interested in speaking or... continue reading

New MD of the IRM Division of OpenLink discusses optimization and trading with ComTech

Published by Gary Vasey
A couple of months ago, we met up with Mr. Roland Jones at E-World in Essen. He had recently been appointed MD of the Vienna-based IRM Division of OpenLink.... continue reading

Scalable Becomes CTRM Conference Bronze Sponsor

Published by Gary Vasey
Australia-based vendor Scalable has become a bronze sponsor of the 2015 CTRM Conference to be held on October 22nd at the Thistle Marble Arch Hotel in London. We... continue reading

An Interview with Richard Williamson, CEO, G10

Published by Gary Vasey
Recently, we asked Richard Williamson, CEO of G10 to answer a few questions about his company, the market and CTRM. Given Mr. Williamson’s status of an long-time veteran... continue reading

TRADESPARENT – Enterprise Commodity Risk Management Software to use

Published by Gary Vasey
TRADESPARENT Risk Management Solutions is a new software application created by the specialist consulting firm – Commodity Services & Solutions (CSS)- and based... continue reading

Quorum – Building Momentum in 2015

Published by Patrick Reames
I met-up with Mike Muse, VP of energy marketing solutions at Quorum this afternoon to get an update on the company’s efforts in the E/CTRM space since the... continue reading

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GlobalView Releases Innovative Proprietary Data Hub Solution

Published 23 April 2015 - (Marketwired) – GlobalView, the leading provider of enterprise-wide market data solutions for the energy and commodity industries, is pleased to announce the release of MarketView® Proprietary Data Hub, an innovative solution that allows organizations to manage their own proprietary data while still benefiting from MarketView’s cost-effective and time-saving solutions for real-time and historical commodity market data. The MarketView Proprietary Data Hub allows organizations to store, manage and distribute highly sensitive proprietary data from their own environment while leveraging in parallel the benefits of MarketView’s SaaS-based architecture for exchange, price reporting agency, broker and public commodity market information. Customers of the MarketView Proprietary Data Hub may utilize in-line formulas and user-defined formulas to easily blend proprietary data with traditional commodity market data in MarketView Desktop™, ExcelTools, Mobile, and... continue reading

Most Feature-Packed CTRM Upgrade Yet Marks Aspect’s 15th Anniversary Year

Published 23 April 2015 - London, April 23, 2015 Leading cloud ETRM/CTRM vendor Aspect launched the most powerful version yet of its AspectCTRM trade and risk management platform incorporating key new functionality for metals and concentrates. The new functionality complements AspectCTRM’s base metals and steel capabilities and features specific to the London Metals Exchange. New concentrates functionality in version 15.1 of the AspectCTRM solution includes: Support for moisture content and tracking of wet and dry quantities. Ability to capture and track multiple payable metals contained in the concentrate, allowing each metal to be valued and marked to market using separate price curves and quote periods. Support for anticipated and real assays. Ability to record and track treatment charges and value... continue reading

Regulation, less risk capital sap commodities liquidity – trade houses

Published 23 April 2015 - By Silvia Antonioli and Dmitry Zhdannikov (Reuters) – Banks‘ exodus from commodities... continue reading

BP calls on EU to exempt oil trading from capital regulation

Published 22 April 2015 - (Reuters) – BP called on Tuesday on European regulators to refrain from imposing stricter capital requirement and greater... continue reading

Commodity Traders Vow Openness as Oil Volatility Brings Boom

Published 22 April 2015 - The heads of some of the world’s largest commodity traders are vowing to increase transparency as the industry... continue reading

ENSYTE Wins Philadelphia Utility

Published 22 April 2015 - ENSYTE has been selected by a natural gas utility, based in Philadelphia, PA, to implement the GASTAR™ product... continue reading

Marubeni Selects Eka’s Next-Generation CTRM Software Solution

Published 21 April 2015 - Marubeni’s rapid growth of its global operations requires the most advanced agricultural trading and risk management software solution.... continue reading

Top Commodity Trading Houses Line Up for Iran’s Return to Market

Published 21 April 2015 - (Bloomberg) by Javier Blas – The world’s largest commodity trading houses are... continue reading

Oil unlikely to hit new 2015 lows – traders

Published 21 April 2015 - (Reuters) by Dmitry Zhdannikov – Oil prices could weaken again but they are unlikely to plumb new depths... continue reading

BP calls on EU to exempt oil trading from capital regulation

Published 21 April 2015 - (Reuters) by Dmitry Zhdannikov – BP called on Tuesday on European regulators to refrain from imposing stricter capital... continue reading

Commodity Technology Advisory LLC Publications

Value Study: Investing in E/CTRM in Turbulent Times

The only constant is change echoes an astute observation by the Greek philosopher, Heraclitus, some 2,500 years ago. Those of us who are engaged in the world of commodities are continually reminded of the accuracy of his observation, particularly recently, as commodity prices collapsed led by crude oil. In fact, our industry is continually impacted by changes in the regulatory environment, supply/demand balance, global economic environment, technology developments, political intervention and more.

Recently, BP noted in its annual Energy Outlook1, “Today’s turbulence is a return to business-as-usual. Continuous change is the norm in our industry. The energy mix changes. The balance of demand shifts. New sources of energy emerge, such as shale gas, tight oil, ultra-deepwater oil or renewables. Economies expand and contract. Energy production and consumption are affected by disruptions, from wars to extreme weather. New policies are created to address climate change or bolster energy security.“

Change is the very lifeblood of the commodity trading world, creating opportunities for profit for those who are swift and responsive enough to act. Good traders make money in up or downwards moving markets, provided they are armed with up-to-the-minute data and the analytical tools needed to identify, analyze and manage their trading decisions. However, depending on market direction, other market participants might be caught in a more problematic situation and experience cash flow and/or profitability issues should price movements undermine their naturally long (producers) or short (consumers) positions. Nonetheless, if the company has the right tools at its disposal to track up-to-the-minute changes, and properly and effectively manage its exposure to those changes, then value can be protected and in some situations, profits might be made.

Managing Forward Curves in a Complex Market

Any company that owns commodities, either through production or merchant activities, needs to know not only the current value of those commodities based on market prices, but also needs to develop a view of the future value of those commodities during the time that they are projected to be held in inventory. Additionally, agreements to purchase commodities in the future must be accounted for, not only at their agreed or projected purchase price, but also during their anticipated holding period.

Commodity prices are constantly changing and are driven by market forces that are virtually impossible to predict with any degree of certainty. As such, accurately forecasting costs and price exposures is difficult at best, and particularly so now, given the rapidly changing supply and demand patterns that define the global commodity complex. Huge growth in demand for all commodities in Asia, the rapid rise of agricultural exports from developing countries in the Asia-Pac region, and the shale revolution that is driving unprecedented growth in US oil production, are all examples of the new dynamics that have fundamentally altered price formation in markets around the world. In this globalized and increasingly interconnected market-place, which is being constantly buffeted by economic uncertainty, predicting future prices is more difficult, but perhaps more important, than ever.

The Use of Spreadsheets in Commodity Trading – 2015

Spreadsheets have long been an integral part of a trading company’s armory of tools and software. Over the years, the demise of the spreadsheet in commod- ity trading organizations has continued to be predict- ed with increasing frequency and regularity, and yet, the spreadsheet is alive, well, and kicking in 2015; as this survey proves. Despite the growing maturity of commercially available Commodity Trading and Risk Management software (CTRM) solutions, the increase in regulation and oversight and, the alarm- ing number of horror stories involving spreadsheets in losses, mistakes and fraud, they seem difficult to eliminate. This survey, prompted by current round of regulation and controls, revisits the spreadsheet in commodity trading to discover how widespread and pervasive they are and why.

The survey was conducted as an electronic questionnaire promoted via Commodity Technology newsletter and other email lists as well as on social media and the CTRMCenter website. It received 133 responses between early November and mid-December, 2014, which after eliminating incomplete responses or those submitted anonymously, was reduced to a set of 50 valid responses from identifiable participants. The distribution of the valid responses was primarily from Europe and North America and from across the entire commodity trading sector.

Allegro CTRM Value Study Report 2014

The environment of physical energy and non-energy commodity trading and marketing has grown increasingly complex, marked by globalization bringing about rapid changes in supply and demand patterns, increased regulatory scrutiny and evolving trading and reporting rules, volatility along the entirety of the physical supply chain, and increasing uncertainty as to future price movements. In order to react to these changes quickly and appropriately, participants in these markets must increasingly rely on a sophisticated infrastructure of software and technologies to ensure a complete view of their trading positions and external market conditions that can quickly and severely impact their values. The core component of these now requisite trading and marketing technologies are energy and commodity trading and risk management (CTRM) systems.

As market complexity has increased and multi-commodity trading has become more common, CTRM solutions have had to become more sophisticated and provide a greater depth of capability in order to capture and value the unique characteristics of the multitude of physical commodities being transacted along the physical supply chain, from source to market. Given the capabilities of these CTRM systems, they do represent a significant investment for any trading or marketing organization, generally trailing only the large scale ERP solutions, like SAP, in terms of costs to purchase and implement.

Allegro Development, one of the world’s largest CTRM solutions providers, engaged Commodity Technology Advisory to conduct a survey of a number of their clients to determine their views as to the value of their investment and the operational and financial impacts of deploying Allegro’s CTRM solution.

This report summarizes the results of that survey and discusses the key considerations for any company seeking to develop their own assessment of the value of their CTRM technology investment via a Return on Investment (ROI) calculation.

CTRM Community

GDF SUEZ becomes ENGIE

Published by Commodities Now
As the world changes, all energies change with it. That’s why GDF SUEZ is now to be known as ENGIE. The world of energy is undergoing profound... continue reading

Can We Take The Current Rally Seriously?

Published by Commodities Now
Oil prices continue to show some strength, closing out the week near their highest levels for 2015. The EIA reported another slight decline in oil production... continue reading

Danfoss sets up India’s 1st model green cold storage facility at Sonipat

Published by Food and Beverage News
Danfoss India, a leading energy and climate solutions provider, has engineered a model green cold storage facility in Haryana’s Sonipat for Sabharwal Food Industries Pvt. Ltd.... continue reading

Focus on building a successful business in India at FPI 2015 second day

Published by Food and Beverage News
The second day (Friday) of the 10th edition of Fresh Produce India 2015 (FPI), a three-day fresh produce trade event, being organised by AsiaFruit in association... continue reading

Weather hopes send grain prices tumbling. Softs fare better

Published by agrimoney
Corn and wheat prices drop, as the US weather outlook turns even more benign. Softs do better at exploiting the tailwind of a weaker dollar Read... continue reading

US soft red wheat on track – but weather woes test white wheat

Published by agrimoney
The soft red winter wheat crop is on track for “average” yields – but there are threats to the “important export crop” of soft white wheat... continue reading

Rallies point to commodities turnround

Published by Commodities Now
Source: Financial Times, 24th April 2015 Iron ore rose 12 per cent this week while Brent oil hit 2015 high Read the full article on FT.com... continue reading

Nordpool Spot RRM FAQs posted

Published by ETR Advisory
Nordpool Spot (NPS)have recently posted their Frequently Asked Questions about their REMIT RRM on their web site, which can be found here. NPS intend to provide a... continue reading

Industry Voices

Are you ready for the digital revolution of recruitment?

Published by Carl Vellenoweth
Every good company knows that it’s most important asset is its staff, right? That a good hire can keep a business afloat through low points... continue reading

November CTRM recruitment update with Carl Vellenoweth

Published by Carl Vellenoweth
In this month’s article, I would like to cover the involvement of social media, CTRM recruitment, and the growing demand for Metals CTRM talent. As... continue reading

Bets on crude surge ahead of OPEC meet

Published by Gary Vasey
MUMBAI: November 27 meet to decide on whether to cut crude output Retail level traders and professional speculators have been raising wagers on crude oil... continue reading

REMIT Emerges – The Rise of Transaction Surveillance in the Energy Industry

Published by Yasmine Li
Introduction In a world of ever increasing globalisation, markets which were once discrete have become increasingly interlinked and none more so than the wholesale energy... continue reading

October CTRM Recruitment Trends with Carl Vellenoweth

Published by Carl Vellenoweth
Post CTRM Conference Feedback In this months article, I would like to echo some of the topics mentioned at this years CTRM Conference in London,... continue reading

September Recruitment Update by Carl Vellenoweth

Published by Carl Vellenoweth
Nowadays, the recruitment market has a somewhat tarnished reputation along with other services within this sector. A good parallel example are the system integrators with... continue reading

Deutsche fined over 4.7M GBP for trade reporting errors – Is it time to panic? – Some thoughts

Published by Aviv Handler
Last week the FCA published a final notice against Deutsche Bank fining them just over £4.7 million (after a settlement discount). The fine was for misreporting... continue reading

Don’t panic! – Comply, but don’t be scared into unnecessary spend

Published by Aviv Handler
Article by Mr. Aviv Handler of ETR Advisory published 28th July, 2014. The acronyms “EMIR”, “REMIT”, “MiFID II” and others have now been flashing in... continue reading

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