Risk Analytics

At TRADESPARENT we strongly believe in the fact that reporting on positions and performance alone is not enough to manage the financial risks of a trading or processing company. For instance, looking at a sole risk position does not tell you anything about the current level of volatility in the market. Neither does the outright position of your option book shows you the sensitivity to underlying parameters.

To gain a deeper understanding of the financial risks involving your trading portfolio, you need additional risk metrics which are offered in our Risk Analytics Solution. With the available set of tools you will have a better knowledge of the risks and are able to manage those proactively.

Where in the past Value at Risk (VaR) was primarily used by big banks we see a lot more companies use VaR in their suite of risk management tools. In TRADESPARENT not only the VaR values per portfolio are calculated, but an extensive breakdown of the drivers behind VaR changes are available as well.

Next to Value at Risk analytics you can gain insight in the details of your option portfolio in combination with your futures and/or physical book. Next to reporting on all option positions and the corresponding Greeks, TRADESPARENT offers both pay-off diagrams and sensitivity analysis to really understand the dimensions of your option book.

Whether it involves option analytics or Value at Risk, TRADESPARENT will solve your needs for risk metrics.

TRADESPARENT Right to the Point

  • Gain deeper knowledge of your portfolio with advanced Risk Analytics
  • Manage financial risk proactively instead of reactively
  • Apply and monitor limits
  • Receive notifications of limit breaches
  • Visualize your exposure per counterparty
  • Analyse position, price or volatility changes with Value at Risk
  • Stress test your portfolio to point out adverse scenarios

  • Control board

    TRADESPARENT has a comprehensive control board, allowing you to freely configure the application in the way you want. From the configuration of imports to the definition of VaR portfolio´s and setting of limits, full flexibility is key and you are in control of the application.

  • Counterparty Risk

    Screening, classifying and tracking of counterparty exposures. Counterparty risk provides insight on volumetric positions, Mark-to-Market and settlement. Counterparties can be assigned to a personal watchlist.

  • Customisable homepage

    Provides the possibility to design personal, comprehensive risk & margin homepages to support individual preferences. Personal views can be easily built by making an own selection of preconfigured widgets for positions, market prices, Mark to Market, Trade P&L, VAR and limits. Thanks to these tools, TRADESPARENT delivers even faster awareness of exposures and profitability.

  • Drawdown

    Tracking the decline in a P&L (drawdown) supports Value at Risk and Stress measurements. The user sets the threshold for alert and strategy re-think. TRADESPARENT calculates the drop from the last cumulative P&L peak and displays the results in graphs and tables.

  • Forex

    A multicurrency platform, capable to work with contracts in all different currencies and units of measure. Shows contracts in both their original currency, as well in the client’s denominated standard currency, including forex hedges. Is able to show P&L’s split up in the results of FX- and commodity price movements, to keep track of detailed P&L’s per area of responsibility.

  • Forward Margins

    The TRADESPARENT Processing model has the unique feature to present gross processing margins based on variable cost and revenues. Profit margins can be visualised 18 months forward, giving you the chance to act early to optimise returns or re-think strategy.

  • Limit Structures

    Define limit structures around positions, VaR, Drawdown and stress. These limits can be set on a variety of dimensions, like product, product group, entity, country or trade book. Thanks to the display of actuals versus limits you will have timely notification for accurate action to manage risks and results.

  • Mark-to-Budget

    Compare current performance versus predefined budget numbers. Not only on an aggregate level, but on a contract-by-contract level as well. Mark-to-Budget uses your budgeted procurement and sales prices as reference and shows the actual performance against budget.

  • Mark-to-Market

    Obtain a better understanding of the performance of each contract against actual market prices at the relevant contract position. The available MtM information can be easily filtered and viewed on a variety of dimensions (entity, subsidiary, product, trade book, etcetera).

  • Positions

    Reporting of gross and net positions per product, for both trading as well as processing environments. The Insight module shows positions against planning, which provides processors direct insight in volumes to be procured, sold or hedged.

  • Price Catalogue

    The Price Catalogue collects and stores all historical, forward and reference prices by location and priority. It provides the ability to construct a harmonised array of market prices from farm to port or factory-gate.

  • Stress Testing

    Create self-defined stress portfolios, which can be analysed in a number of ways. These include individual commodity trends and market convergence.

  • Trade P&L

    Track your company’s performance and manage its results thanks to daily insight in P&L. TRADESPARENT combines unrealised (Mark-to-Market valuations of open contracts) with the realised P&L. This provides insight in P&L development, split up in organisational units, products, product groups, trade books/business units, plants or any other desired dimension.

  • Value at Risk

    Calculate Value at Risk values based on 3 different calculation models: Historical simulation, Monte Carlo and Parametric. Value at Risk portfolios can be easily configured for organisations, trade books and product groups.

  • Control board
  • Counterparty Risk
  • Customisable homepage
  • Drawdown
  • Forex
  • Forward Margins
  • Limit Structures
  • Mark-to-Budget
  • Mark-to-Market
  • Positions
  • Price Catalogue
  • Stress Testing
  • Trade P&L
  • Value at Risk
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More modules

Gain insights, monitor and report on trades, risk exposures and performance with the TRADESPARENT platform, built by commodity specialists for commodity businesses.

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Create transparency by bringing procurement, sales, energy costs and planning together in one comprehensive margin forecast model and optimize procurement and sales decision-making. 

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Compliant and in control on commodity trade related regulations such as MiFID II, EMIR, FMIA & CFTC, and satisfy internal and external stakeholders with our Regulatory Solution.

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Call us at +31 (0) 10 413 65 88
or e-mail us with comments, questions or feedback info@tradesparent.com