The Commodity Trade Management Module is part of the front office module which also includes Risk Management for risk measuring, managing and reporting market and credit exposures, and Market Data for pre-trade analysis and price uploads to AspectCTRM. While many companies access trade and risk functions through our Standard and Enterprise Editions, others access only the Commodity Trade Management functions via our Lite Edition which is designed for less complex requirements for small companies.
An enterprise information management strategy is critical in the success of leveraging an ETRM/CTRM system due to the time sensitive nature and accuracy of changing prices being applied to transactions and portfolios. AspectCTRM customers also subscribe to our AspectDSC Market Data & Analytics solution. AspectDSC is the decision support center for traders globally who access futures and spot prices – and chart trends for multiple commodities from sources like NYMEX, ICE, Platts, Dow Jones, CBOT, LME and others. This provides a seamless transfer of market prices used to validate trades and update positions. With the push of a button prices are uploaded from AspectDSC throughout the trading day. Many companies are manually updating this information which causes errors. Also many times corrections are missed when prices are re-released to the market as price corrections. AspectCTRM also integrates with external market intelligence providers, but the advantages of linking AspectDSC to trades as the pricing intelligence of record are unparalleled.
One of the most critical capabilities of an E/CTRM platform is the ability to accurately detail the company’s portfolio from a physical and financial perspective. With AspectCTRM exposure reporting is intra-day and in real-time as market prices are updated. This gives enormous confidence to the decision making of traders using our AspectCTRM solution. Most vendor applications perform risk calculations over many hours at the end of the day.
As the trading day continues, AspectCTRM’s OLAP reporting tools are used to continuously update and monitor positions. P&L and positions are updated at the point of entry of each trade, so for client organizations that support T+0 or immediate trade entry, the goal of ‘real-time’ risk management is possible.
Companies relying on AspectCTRM drastically reduce the time it takes to produce intraday and closing reports to seconds rather than hours or days, and start every day with an accurate financial picture of the entire organization. No other solution delivers reports in seconds.