For daily ETRM users, managing and maintaining accurate forward curves is a critical component of commodity trading and risk management because it provides a snapshot of what a commodity is worth today, based on a buy or sell in the future. Premier forward curve analysis is essential to increasing trading teams’ operational efficiencies, managing compliance, mitigating risk and driving business growth.
As risk analysts and risk management professionals know, creating curves can be time-consuming and complex. Without essential tools in place like automated data feeds, detailed audit trails and advanced monitoring tools, risk managers take the chance of inserting human error into vitally important end-of-day processes.
While some trading firms still grapple with the decision to “build or buy” a forward curve management solution that checks all the boxes for risk management success and connects easily to existing ETRM systems, more and more companies are choosing to turn to external solutions like CurveBuilder, Enverus’ easy-to-use web-based platform, to manage their forward curves.
How can ETRM users that haven’t yet made the leap to CurveBuilder decide if outsourcing their forward curve management is right for them?
- No technical coding skills required
In the past, companies have created their own, in-house, Excel-based forward curves. But making changes wasn’t quick. It required the expertise of developers, quants or analysts to edit or create curves. Traders or risk analysts couldn’t create their own curves in just a few clicks. The simple ‘drag and drop’ interface of Enverus’ CurveBuilder enables traders to build curves on the fly.
- Ensure compliance and risk management
With the right outsourced solution, companies will get comprehensive audit trails and advanced monitoring tools. Risk managers can track every single change in the history of a curve, view the price components and market conditions associated with calculations and quickly identify risks as they arise.
- Scale for the future
No longer is curve building dependent on the availability of those with the coding skills to create them. Traders can create and run complex curves in real time, seeing instantly what their positions are and reacting to market changes as they happen. Enverus clients calculate that they spend 90% less time calculating curves by using CurveBuilder.
Ready to learn more? We’ll arrange a personalized curve building session for your team using our technology. Sign up below today.