Counterparty exposures & limits
energycredit is a global limits management and credit exposure measurement application built specifically for the energy markets. Global energy trading institutions typically have multiple systems across front and back offices, which serve as repositories for the open transactions of that organisation. energycredit allows interfaces to be established quickly to these systems, allowing credit risk exposures to be measured and policed on a global basis. An emphasis is placed on data visibility, so that any exposure can be drilled through the various levels of aggregation down to individual transaction level. Recognising the benefits of netting and collateral agreements and using those to calculate credit exposures can minimise the use of credit limits and maximise trading opportunities. Product coverage includes physicals and derivatives in gas, electricity, oil, coal, carbon and weather, with a flexible underlying model, which is easily extensible to other areas.
Base technology foundation
energycredit is built on the very latest in Microsoft's leading-edge web technology. A browser-based web portal provides users with a fast, smooth user experience while advanced integration tools, scalable batch scheduling and real-time calculation engines, ensure that the most up-to-date enterprise-wide exposures are always available to everyone in the organisation on a global, 24x7 basis.
Counterparties and hierarchies
energycredit comes with a complete counterparty management tool for maintaining and managing all the kay static data such as names, addresses, key contacts, industry sector, corporate profile and other business data. automated counterparty on-boarding can be configured to link with other systems if required. Various permission and audit strategies can be employed to compile with internal and external regulatory requirements. Also, a sophisticated aliases mechanism allows a system of record for counterparties with different names across multiple systems.
Comprehensive hierarchy information can be modelled for counterparty corporate structures. energycredit handles multiple hierarchy structures to model the legal hierarchy, parental guarantee hierarchy and any customised hierarchies as required. Joint ventures and partial ownerships can also be handled easily.
Core exposure engine
The core energycredit exposure engine provides an advanced aggregation tool and sophisticated modelling of multiple exposure types such as MTM, current month deliveries, ARAP and future settlement. There is support for multiple commodity types with different exposure profiles and units of measure (e.g. event-driven exposures such as LNG and oil cargos or cumulative roll-off and constant delivery profiles). A settlement risk rules engine can be configured for physical and financial settlement profiles, or payments can be automatically fed in from external systems such as SAP. Exposure measures can be split and reported between primary risk, and also contingent risk to third party security issuers where appropriate.
Advanced netting rules can be configured, with all the key contract information captured and utilised by the aggregation engine. This ensures the best, worst and actual contractual netting scenarios are computed, with close-out and set-off.
Users can choose to see the exposures with or without netting rules, aggregated across numerous hierarchy structures as required. The exposures can be computed on a scheduled basis or in real-time.
