CTRM Center


Aspect continues to build market momentum

Published by Patrick Reames
We visited this week with Aspect to get an update on some of their recent activities and developments as the company (which started as OILSpace) marks its 15th year... continue reading

SunGard Adaptiv Eyes Regulatory Changes in Energy and Commodities

Published by Gary Vasey
Last week, I took a briefing from SunGard regarding its Adaptiv software product line. The software was originally designed for the capital markets that are already highly regulated and already fall under regulations such as MiFiD. With an eye of MiFiD2 and CRD IV impacting energy and commodity trading in the future,... continue reading

SAP Commodity Management Update

Published by Gary Vasey
Last week, I was invited to SAP’s Commodity Management Forum 2015 in Heidelberg, Germany. It was a well-attended event with representatives of 15 customers, and 7 partner firms,... continue reading

The Low Commodity Price Challenge

Published by Gary Vasey
A quick peak at our lists of vendors and their clients is enough to see that many top tier firms in commodities such as the big marketers, for... continue reading


Published by Gary Vasey
It is November and it’s the month when some of us decide to try to grow something on our top lips to raise money for charity… The charity is aimed at men’s health which is a topic... continue reading

It’s a Wrap

Published by Gary Vasey
The 2015 CTRM Conference is officially over. Around 100 delegates attended and the day appears to have been a success for everyone involved. Shortly, we will post photos of the event and also make presentations available for... continue reading


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Kynetix launch a Blockchain Consortium focused on the Commodity Markets

Published 23 November 2015 - Kynetix, a global leader in Commodity post trade technology platforms, today announced it is launching a Commodity-focused blockchain consortium. An inaugural dinner will take place in London this Wednesday with 15 participants representing major commodity exchanges, investment banks, clearing houses, and brokers to discuss the merits and challenges of collaborating on a blockchain initiative within the physical economy. The dinner, to be held at the historic Innholders Hall, will bring together key stakeholders within the Commodity trade lifecycle on the understanding that the greatest potential benefit of Blockchain technology is achieved through collaboration. Following a well-received white paper on 7 Ways Blockchain Technology Could Disrupt the Post-Trade Ecosystem by CEO Paul Smyth, Kynetix have realised... continue reading

Commodity Traders Ill-Prepared for Liquidity Crunch, Report Says

Published 18 November 2015 - (Bloomberg) — Most commodity traders underestimate the risks of a major liquidity crisis that would choke off funding, according to a report by industry consultant Oliver Wyman. Traders owning assets such as refineries or mines as well as commodity-driven industrial conglomerates have failed to prioritize liquidity-risk management, according to the report “Liquidity Risk: Uncovering the Hidden Cause of Corporate Shocks.” Many unregulated businesses including trading houses haven’t taken up the more stringent risk practices adopted by banks since the financial crisis, even though access to capital is the life-blood of an industry that depends on short-term loans backed by physical cargoes to fund operations, Oliver Wyman said. While able to shrug off slumping resource prices, traders are failing to evaluate credit risks that could be produced by... continue reading

Major banks’ commodities revenues down 17 percent this year – report

Published 17 November 2015 - (Reuters) by Eric Onstad – Commodities-related revenues at the top 10 investment banks... continue reading

ICE Futures Europe to Introduce a Containerised White Sugar Futures Contract in 2016

Published 17 November 2015 - November 17, 2015 09:00 AM Eastern Standard Time LONDON–(BUSINESS WIRE)–Intercontinental Exchange (NYSE:ICE),... continue reading

Intercontinental Exchange to Acquire Trayport from BGC Partners and GFI for $650 Million in Stock

Published 16 November 2015 - November 16, 2015 07:30 AM Eastern Standard Time ATLANTA & LONDON–(BUSINESS WIRE)—Intercontinental... continue reading

Oil, gold edge up in nervous start on commodities markets after Paris attacks

Published 16 November 2015 - Reuters -By Henning Gloystein and Josephine Mason SINGAPORE/BEIJING, Nov 16 Gold and... continue reading

Power up and down

Published 16 November 2015 - Despite having made significant steps towards an accelerated development of its energy market, Romania still has a long road ahead,... continue reading

Sugar Shortfall Fuels Rally

Published 15 November 2015 - Barrons: A rally that has seen raw-sugar futures surge nearly 50% since late August could sweeten even further. Sugar futures... continue reading

Anyone want a power station?

Published 13 November 2015 - The Economist – “IT’S not a funeral, it’s a transformation.” That is the positive spin Francesco Starace, the... continue reading

China plans power trading exchanges to free up electricity prices

Published 12 November 2015 - (Reuters) by Kathy Chen and David Stanway – China is planning to set... continue reading

Commodity Technology Advisory LLC Publications

The Importance of Price Curve Management In A More Regulated Commodity Trading Environment
The Importance of Price Curve Management In A More Regulated Commodity Trading Environment

In an era of significantly tighter regulation and oversight of commodity markets, forward price curves have taken on a whole new level of importance. Internal and external auditors, as well as regulators, want to be certain that the valuations used to build up financial statements are irrefutable and truly represent fair value based on reliable data. Indeed, several of the regulations now in force also call for increased and better documented risk management processes, including mark-to-market and profit and loss calculations.

Increasingly, funding banks and shareholders also desire increased transparency into risk management for assurances and forward price curves are central to that function. No matter how good the risk management systems are, it is the data that they utilize that is key to good risk management, and market pricing is a key ingredient in that data. Furthermore, the forward curve requirements don’t just impact commodity trading and hedging operations, but also the treasury function.

In a previous paper, Commodity Technology Advisory defined forward curves and looked at their uses and the source of the forward curve data in some detail. In essence, forward curves have three major uses.

Ensuring E/CTRM Implementation Success
Ensuring E/CTRM Implementation Success

An energy/commodity trading and risk management (E/CTRM) system implementation project is the structured process of taking a newly acquired E/CTRM software product from delivery of code to full “in production” use, and in the process, meeting the business needs that precipitated its purchase.

Implementing an E/CTRM system shares many of the complexities involved in implementing any other enterprise-scale IT system. It requires a comprehensive plan, solid leadership (both executive and project management), specialized technical and business expertise, and a commitment from the software vendor to provide the necessary support to make their new client successful.

However, E/CTRM solution implementations are further complicated by the fact that the E/CTRM product operates not only as the system of record (that is, the system that records, maintains, and accounts for transactions), but it also provides capabilities for managing contracts, trades/deals, logistics, position management, risk management, and associated analytics. A comprehensive E/CTRM system is designed to be a singular system that provides energy and commodity trading organizations the depth and breadth of the highly specialized functionality their businesses require. As such, E/CTRM systems are extremely complex and require detailed knowledge of the business combined with a deep understanding of the software capabilities to properly implement. ComTech Advisory’s experience and research suggest that the effort required and the risks involved in implementing and integrating a sophisticated, configurable enterprise-scale E/CTRM solution are of ten poorly understood by the client and may be minimized (though not necessarily intentionally) by the software vendors during the sales process. Underestimating the real costs and project risks can quickly turn what would otherwise be a “bargain” software package into a long-term, costly headache. All things being equal, when it comes to E/CTRM software, the lowest priced solution may not necessarily be the right solution.

CTRM Community

Metals Trade & Risk Reporting: Create Your Own Script

Published by Aspect
Everyone views the world through their own prism. This is true of commodity traders, depending, on which commodity they’re trading, the company’s size and their commercial... continue reading

Demand for “Everything Faster, Cheaper, Easier, More Flexible” Drives The World – And It’s No Different In Commodity Trading

Published by Aspect
Welcome to Aspect’s Blog on Technology. It’s the first of many to come with this one introducing a series on “Configuration through Scripting” rather than “Customization... continue reading

FMC cuts profits hopes, again, as weak real bites

Published by agrimoney
The chemicals group lifts a target for cost cuts and job losses in another sign of weakness in the farm inputs sector Read More... continue reading

AM markets: strong Chinese import data lift soybean futures

Published by agrimoney
OK, Chinese trade data overall were not so hot. But they were strong for many commodities, soybeans especially. This time, grains gain too Read More... continue reading

Oil glut to persist through 2016, says IEA

Published by Commodities Now
Source: Financial Times, 13th October 2015 Weaker economic output forecast after stimulus from lower prices wears off Read the full article on FT.com Read More... continue reading

+Global oil demand growth set to slow, says IEA

Published by Commodities Now
Source: Financial Times, 13th October 2015 Weaker economic output forecast after stimulus from lower prices wears off Read the full article on FT.com Read More... continue reading

Global oil demand growth set to slow, says IEA

Published by Commodities Now
Source: Financial Times, 13th October 2015 Weaker economic output forecast after stimulus from lower prices wears off Read the full article on FT.com Read More... continue reading

Global oil demand growth set to slow

Published by Commodities Now
Source: Financial Times, 13th October 2015 IEA warns weaker economic output to damp demand in 2016 Read the full article on FT.com Read More... continue reading

Industry Voices

Amid a Price Bloodbath, BTG Commodities Trading Unit Thrives

Published by Patrick Reames
(Bloomberg) by Juan Pablo Spinetto & Cristiane Lucchesi – As trading houses like Glencore Plc and Noble Group Ltd. try to navigate the aftermath of... continue reading

CTRM Recruitment update with Carl Vellenoweth of Commoditas Partners

Published by Carl Vellenoweth
Spike in LNG CTRM skills Over the last 18 months there’s been an increasing number of multi-national and national oil companies setting up trading hubs,... continue reading

Iron Ore: swapping the physical for the paper trade

Published by Ami Katschinski
By Ami Katschinski, Trayport’s Head of Global Commodities, offers his views on the future of the global iron ore market The iron ore markets have... continue reading

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


  • Commodity Technology Advisory is the leading analyst organization covering the ETRM and CTRM markets. We provide the invaluable insights into the issues and trends affecting the users and providers of the technologies that are crucial for success in the constantly evolving global commodities markets. Our team is headed by Patrick Reames and Gary Vasey, a team whose combined 60-plus years in the energy and commodities markets provides depth of understanding of the market and its issues that is unmatched and unrivaled by any analyst group.
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