The CTRM Blog

CommodityPoint has issued a new Technical Briefing Note on Risk Optimization highlighting the Hyper Rig Risk Optimiser product. The TBN may be downloaded from the Reports and Articles page of this blog.

In an ideal world, running stochastic risk metrics such as full blown Monte Carlo Value at Risk (VaR), Earnings at Risk (EaR), portfolio stress tests or, other simulations, would be performed both on demand and in real time for complex commodity portfolios. Unfortunately however, this vision has proven to be elusive with most firms resorting to the use of overnight ‘batch’ jobs lasting hours to provide an accurate assessment of the day’s starting position and then utilizing parametric risk metrics during the trading day to approximate changes in position.

I first met Richard Quigley, CEO of Datagenic a few months back at the Essen E-World Conference and Tradeshow. He was very keen to catch my attention and talked with passion about his business and products. Recently, I caught up with Richard again by phone to discuss with him data management and associated issues around commodity trading and risk management. Here is what I learned.

Can you briefly introduce DataGenic and its history as a supplier of data management solutions?

In 2010, CommodityPoint changed its approach to distributing our multi-client study reports. In short, we decided not to charge a fee to buy them but to give them away instead! We want you to see our work product and thought leadership and this is one way for us to do it.

You can get our FREE reports from this blog at the Reports and Articles page. You will find our 2009 reports here along with any new reports we produce in 2010 and onwards. Feel free to download them and share them.

Next week I will be heading back to London to be a panelist at Hyper Rig’s breakfast briefing on Risk Optimization. I will be joined by Richard Jefferson, MD Head Commodities Sales at Deutsche Bank and Michael Coleman founder of Hyper Rig as we discuss the issues facing traders and risk managers.

The breakfast briefing will help attendees discover the latest technological advances to:

* Run full Monte Carlo and other simulations in real-time, on demand, on complex portfolios during the day without the need to replace other systems or use overnight batch jobs;

Yesterday I received a press release from Allegro regarding its “go live” at Repower (formerly Räetia Energie), an international energy company based in Switzerland that has implemented Allegro 8 to manage its emissions trading activities, and is extending the implementation to handle its power and natural gas trading. Repower will utilize allegro 8 as a single platform to manage the company’s complex trading operations across multiple commodities, locations, and trading floors throughout Europe. The announcement can be found here.