In the commodity trading industry, rising concerns over bank stability, access to credit and a growing number of cases of fraud are making financial institutions reluctant to shoulder counterparty risk. At the same time, firms need greater transparency into portfolio valuation, risk and return. As a result, investor demand for independent third party valuations is growing rapidly amid a fundamental shift from over-the-counter (OTC) to cleared trading. SunGard provides real-time commodity trading, position keeping and risk systems delivered in a Software-as-a-Service (SaaS) environment to help traders, risk managers and investors meet time-to-market requirements with minimal IT support and maintenance.
Three Key Trends
â¢ OTC to cleared trading: the move from OTC to exchanged-based and listed contracts is driving greater transparency into valuation and counterparty risk.
â¢ Portfolio valuation: there is an increasing desire for third party validation and valuation of books and positions based on independent data in order to provide accurate, unbiased valuations and therefore greater transparency
â¢ One-touch technology solutions: commodity traders increasingly desire rapidly implemented, on-demand technology solutions that handle trades from inception through expiration
James Rigney, Etihad Airwaysâ executive vice president finance, said: âSunGardâs Kiodex provides a completely automated environment for trade execution and administration, risk management, hedge accounting, independent data, models and custom reporting in one solution that is easily and quickly implemented in a SaaS environment.â