Trading is the activity common to both commodity and capital markets businesses and is the reason for the morphing of these two worlds together. We’ve already had one decade of rapid change, and there is at least one more to come. Our clients are moving closer to raw material sources, expanding across a broader range of assets to get better economies of scale, and all this with moving regulatory goalposts. Your advantage = Riskcare (capital markets expertise * commodities leadership).
- 01
CONTROL YOUR LEFT-TAIL AND CORRELATION RISK IN REAL TIME
GOAL: A HOLISTIC VIEW OF RISK IN REAL-TIME
We build real-time risk management engines that integrate a comprehensive view of risk (including operational and liquidity risks) into your trading processes. Huge left-tail risk, high correlation risk and a highly volatile market demands bespoke technology. Our experience helps us design exposure management systems to curb speculation and manipulation while enabling liquidity and price discovery on physical markets (metals, energy and softs).
[LEFT TAIL CORRELATION REAL TIME RISK INTEGRATION OPERATIONAL LIQUIDITY CREDIT MARKET HIGH VOLATILITY]
- 02
DODD-FRANK AS A SOURCE OF ALPHA
GOAL: TURN REGULATORY CHANGE INTO YOUR COMPETITIVE ADVANTAGE
Is Dodd-Frank good in the short term or only in the long term? The quicker you respond, the quicker you learn the new environment. Your experience in the new market gives you a gain on your competitors; it’s a source of alpha. We perform a quick and comprehensive review of your products, services, and operations – and use this to identify other sources of alpha that are uniquely available to your business. These workshops are not just one-offs; we meet monthly until your programmes are in motion.
[DODD FRANK CFTC POSITION LIMITS SPECULATION MANIPULATION PRICE DISCOVERY PHYSICAL MARKETS VOLCKER RULE ALPHA RETURNS RISK PROFILE HEDGE FUND ASSET MANAGEMENT]
- 03
OPENLINK VS TRIPLEPOINT VS MUREX VS SUNGARD
GOAL: GET THE RIGHT PLATFORM FOR YOUR BUSINESS
Every commodities system is unique in itself. Using an independent company with deep, practical experience in each vendor platform will ensure you make the right decision both for now and as your business grows. Because we integrate and customise each of these, the advice we give is based on our experience of living with them in the long run. Because we walk our talk and because our contracts are all outcome-oriented, we work from your perspective. We’re with you for the long haul therefore you’ve got the teeth you need to make sure our advice is right.
[OPENLINK TRIPLEPOINT MUREX SUNGARD SELECTION INTEGRATION SOFTWARE VENDOR]
- 04
NON-MARKOVIAN SPIKE MODELS
GOAL: ACCURATELY MODEL YOUR FINANCIAL & PHYSICAL ASSETS
Valuation and risk models can be a competitive advantage or a restriction on your ability to manoeuvre. We will add as much value as you let us; at the sharp end we help clients build new models that reflect their unique vantage and business capabilities. More frequently we aim to remove any frictions acting against your ability to change your business, through validation, regression testing, integration and re-engineering. By offering a “just in time” service for these purposes, we stop models from being the tail that wags the dog. Our clients are the only players in the market with advanced models consistently used throughout their organisation, and who continue to be able to change themselves as rapidly as their business evolves.
[NON MARKOVIAN MODELS PRICE SPIKES COMPLEX PHYSICAL FINANCIAL ASSETS]
- 05
BASEL FOR NON SWAP-DEALERS
GOAL: MAXIMISE YOUR CAPITAL UTILISATION
We help firms take advantage of the Basel rules being imposed on “swap dealers” by ensuring there is a strong risk control and governance process that minimises the capital required with internal models.
[BASEL CAPITAL REQUIREMENTS ENERGY FIRMS COMMODIY TRADING HOUSES SWAP DEALERS]
- 06
EU ETS – PHASE III
GOAL: GET YOUR SHARE OF EMISSIONS TRADING EXPOSURES
Given that emissions trading will dwarf other trading activities in the near future, it’s useful to hit the ground running after phase III of the EU ETS in 2013. We will make it happen for you.
[EMISSIONS TRADING EU ETS PHASE III REGULATIONS CER EUA CRC CDM CAP AND TRADE RATE BASED SCHEMES]