In practice the challenges of having daily insights in the overall business and positions portfolio, which is actual, complete and validated are difficult, labor intensive and expensive to accomplish, especially because data needed usually resides in many different internal and external systems and sources.
“What we do with our TRADESPARENT Solution is connect to any data source to realize complete analysis and reporting. This includes transactional (CTRM) as well as financial (ERP) systems, internal and external market pricing information and even Excel sheets which are still widely. TRADESPARENT will unify all this information automatically, run its powerful Risk and Margin Analytics Engines and present the results in a user-friendly and personalized dashboard. We call this ‘one source of the truth,’” explains Norbert Verhagen, Managing Director of TRADESPARENT.
TRADESPARENT’s Risk and Margin Management Solution is a commodity industry dedicated reporting and monitoring tool with a holistic, yet granular approach to the diverse portfolios and business models. TRADESPARENT comes with four core functional modules: Position & Performance Reporting, Dynamic Margin Management, Regulatory Reporting and Risk Analytics. Together it provides the key features any company in the industry needs, such as comprehensive Risk Position Reporting, daily Mark to Market, Trade P&L, Limit Monitoring and solutions for today’s regulatory requirements. The solution merges the physical portfolio with the relevant financial hedging portfolio for a combined view of the net financial risk position for the entire company.
The Dynamic Margin Management imparts transparency into physical procurement, processing and sales portfolio, risk exposures and hedging derivatives. This helps companies gain a magnified view on daily margins and mark to budgets along with the net risk position. The Risk Analytics module is equipped with additional risk metrics to gain deeper insights by moving beyond reporting position and performance. Empowering companies to create what if scenarios, stress test their portfolio, identify VaR, among other capabilities powered by analytics. With the solution’s Regulatory Edition, companies are well prepared to deal with today’s evolving compliance reporting.
TRADESPARENT‘s Risk and Margin Management Solution is highly relevant for sectors such as Food & Agri, Metals, Softs such as sugar and cocoa and other commodity related businesses. For instance, one of the company’s clients—a major player in the food sector present across three continents-realized that their R&D and end-product marketing alone were insufficient to safeguard margins. They also faced mismatch in timings between procurement and sales. TRADESPARENT’s solution was rolled out to include all their operations across three continents for weekly automated reporting of margins, procurement and sales transactions in volume and value. The partnership helped the client to achieve better coordination between different departments whilst acquiring a broader margin management, trading and risk management skill set.
Having already established itself as a key player, particularly in the Food and Agro-commodities landscape, TRADESPARENT is widening its scope into the realm of hard commodities such as metals, oil and gas. “Our ambition is to be the leading provider of risk and margin management solutions for the commodity industry,” concludes Verhagen.