Our case studies explore how TRADESPARENT’s Commodity Data and Analytics Solution has helped clients all across the globe to meet business requirements and take data-driven decisions.
TRADESPARENT’s PRICE CURVE CATALOGUE (PCAT) SOLUTION IS BAYWA’S GO-TO RISK FEATURE TO SAVE TIME ON MTM AND BE IN FULL CONTROL OF THEIR TRADE PNL
We had the pleasure to talk to Anne Hönig, Risk Manager at BayWa AG about her daily usage of TRADESPARENT’s Price Curve Catalogue (PCAT) solution. Anne is responsible for the origination and trade business for grains and oilseeds at BayWa AG in Munich Germany.
A SNEAK PEAK INTO BAYWA AG
Anne explains the daily challenge of being a risk manager and how companies are always at risk. Therefore it’s important to have control of your daily risk exposure. She explains how the PCAT saves them time on MtM valuation as well as having full control of their trade PnL.
“Open trading books with open contracts are always at risk and our team at BayWa want to know the daily value of those contracts. Not only the historical value but also today’s value as prices are usually volatile, especially in the Agri-business! That’s exactly where the PCAT comes in, it allows us to monitor daily PnL changes of the open book in a flexible and transparent way. Prices come in from internal and external sources and the risk desk assigns those prices to the positions according to a specific logic. The goal being to have an accurate reflection of the market as close to the trading location (the “position”). At BayWa AG, we trade non-liquid and liquid parities and the PCAT helps us derive liquid price curves from non-liquid ones in an easy way. The final result is MtM valuation with a proper matching of apples (positions) to apples (prices)!
TRANSPARANCY, FLEXIBILITY AND CONTROL
Anne explains that before using TRADESPARENT’s PCAT Solution their transparency and level of accuracy was much lower, and it was a manual intensive exercise to analyze where suspicious changes in the unrealized PnL were coming from. This resulted in a high cost of maintenance and loss of valuable time.
Anne states: “the main thing I love about the PCAT is that it is very transparent. I can assign whatever price curve I like to every single position. Even before applying it, I can see what effect it will have on our PnL from this action. TRADESPARENT also offers to create easy widgets from their solutions. We have built our price report *widget in seconds, which allows us to see every single detail about the valuation price that is assigned to a specific curve. What is the base curve, the cost components, the freight and so on. This is of great importance in understand what is driving changes in the valuation.
“With the PCAT and our Price widget, we can go deeper and see where its coming from and have full control: it saves me a lot of time! Also, it increases speed when having to analyze results. Management wants quick results and the PCAT enables us to be quicker and provide transparency to our management team. “
QUICK SUPPORT
Anne works closely together with the TRADESPARENT team based in Rotterdam; she explains: “Apart from the PCAT we use more of TRADESPARENT’s wide portfolio of business solutions to manage our risk exposures. But the thing that makes TRADESPARENT unique is the great team behind it. Response times are super quick, they are flexible and always ready to help. Their team of industry experts work closely together with us to find the quickest way to make new solutions tailored to our needs. That’s really brilliant!”
ABOUT BAYWA AG - Agri Trade & Supply Germany
BayWa AG concentrates on origination in Southern and Eastern Germany and deliver the goods to the German and European Milling and Feed industry as well as international export. Read more at www.baywa.com
REQUEST A DEMO
PCAT is part of TRADESPARENT’s Positions & Performance business solution. Request a demo and learn how the PCAT can help you save time on MtM and help to have full control of your trade PnL. Request a demo here:
Questions? Do not hesitate to drop us a line at info@tradesparent.com
*TRADESPARENT offers more than 50+ off-the-shelf, flexible Widgets that enables users to quickly create dashboards based on TRADESPARENT’s wide range of business solutions tailored to their needs. For example, users can create price reports, PnL charts, Position reports, VAR and more, both in chart and table format with easy drag and drop.