Phlo Systems adding Risk Functionalities to opsPhlo
Phlo Systems has been busy in recent months adding significant functionality to its opsPhlo software solution – opsPhlo ‘combines powerful CTRM functionalities and comprehensive ERP capabilities with seamless digital connectivity to all supply chain partners,’ according to the vendor’s website.
Phlo’s Talha Khan explained that in conjunction with a major implementation for a customer who is extending their use of the solution into its energy business, amongst others. “We are enhancing the solution in the risk management area,” he told me. Phlo has added more futures and options functionality making it a little more granular, he said, as well as enhancements in the hedging side allowing users to link hedges to multiple contracts and perform reconciliations.
A further key part of this set of enhancements has been the development of an API with Cumulus9 – another cloud vendor that specializes in margin forecasting and risk analytics. Via the API, opsPhlo can now send across all portfolios and get back VaR, margin calculation results and a number of other analytics for its users. This includes Initial Margin based on underlying exchange methodologies, historical VaR, option valuations and so on, he said. “Users can also now do what-if type scenario analysis based on price or market moves.”
Another area of enhancements has been in the area of cost tracking. Costs can be assigned to contracts and the solution performs cost accounting doing a better job of calculating PnL and helping users to optimize trades and forecast better. The FX area of the solution is also being bolstered to be more granular and via the addition of MTM reporting on the FX side. Meanwhile, improvements in reporting is another area of enhancements as well. These new features and functions are designed to allow users to obtain better business outcomes, improved efficiency, and more effective risk management, he told me.
All of the enhancements are available in the current release on the data side and Phlo is working on building out the screens needed currently as a part of its implementation project. All the new features will be part of the base solution except for the IM functions which will require an incremental fee, he told me.
Phlo says that most of the demand right now is actually from current customers extending the use of opsPhlo across their enterprise often replacing legacy solutions in the process. It also has a strong sales pipeline particularly for its customs declarations solution – tradePhlo – where he says it routinely adds 4-5 new customers each month.
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