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Enuit Busy with Product Enhancements to Stay Ahead of Changing Commodity Markets

This week, I had a chance to catch up with Enuit’s Chief Product Officer, David Rao, and ask about Enuit’s plans in terms of new enhancements and to hear what functionality the market was currently asking for. The first thing that came up in our conversation was functionality to support a strong demand for environmental and emission requirements. David said that “Enuit has now added an environmental module to Entrade to allow the trading of environmental products like carbon allowances, carbon offsets, Recs, RinS, emission credits and so on. We are also busy working on adding even more functionality to help manage bundling energy, biofuels, and renewables with environmental products in physical deliveries, pricing, and settlement areas”, he continued. Emissions and ESG remain an area of interest for all commodity firms in terms of future needs.

Interestingly, David also told me that hedge funds were a new group of customers for Enuit and Entrade. He pointed to Entrade’s ability to be a truly multi-commodity solution as being one of the attractions of the software for hedge funds. Additionally, Enuit is also investing in enhancing its functionality to better serve this class of customer adding functionality like:

  • Focusing on ability to handle very high-volume trade flows from both an Entrade and interface perspective,
  • Allowing customers to on-board new instruments easily and quickly,
  • To incorporate more sophisticated risk analytics like VaR models that include seasonal adjustments, for example,
  • Implementation of additional exotic option models, and
  • Improving risk analytics generally to allow features like cross gammas and correlation vega.

Another area where Enuit is seeing increased interest is electric power on a global basis and so it is also focusing on consolidating the power product line to provide a more holistic view across different regional markets like North America, Europe, UK, Japan and so on. This, he added, was being done in conjunction with the renewables and environmental products changes. Enuit is also investing in managing large volumes of zonal and nodal FTRs throughout the life cycle of deal entry, valuation, and settlement.

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Finally, commodity management remains an area of increased interest and with Entrade Unite, Enuit can offer a comprehensive commodity management solution. Here the emphasis is on adding even more state-of-the-art workflow and business process mapping capabilities.