An Energy and Commodity Trading and Risk Management (E/CTRM) system is a piece of software that powers energy and commodity trading, risk management and back office operations for industry participants. E/CTRM systems can be used by many types of market participants, from producers and utilities to commodity traders like banks, hedge funds, oil traders and major energy or commodity consumers.
A good E/CTRM system allows its users to:
- Make well-informed buy/sell decisions based on real-time and predictive analytics that deliver market insights
- Keep the portfolio within the defined limits and control risk exposure
- Seamlessly coordinate with production assets, logistics, transport and storage providers through smooth integrations
- Focus on strategic activity by automating portfolio management workflows and enabling straight-through processing
- Facilitate data exchange across trade floor, operations, credit, contract and accounting functions via a user-friendly interface
- Mitigate the risk of bias and human error negatively impacting trading decisions
- Track the whole deal life cycle
- Maintain and streamline regulatory compliance