New Chartis Report - Energy Trading Risk Management Systems

 

26 September 2013

Chartis, the leading provider of research and analysis on the global market for risk technology, has issued a new report on Energy Trading Risk Management Systems.

The market for energy trading risk is highly diverse, which can make it difficult to sum up the market as a whole.  It covers a range of commodities and sectors, which means that ‘energy’ will be viewed as part of commodity trading by some and as a separate branch of risk management by others. New rules and reporting requirements from the FCA, EMIR, REMIT, and Dodd-Frank on reporting and clearing have already begun to affect the energy trading marketplace, bringing about the ‘futurization of swaps.

The development of the market has centered on increasing complexity and the demand for more integrated risk management.  While energy trading risk management previously emphasized VaR analysis and hedge accounting, credit risk, which is complex and computationally intensive, is becoming more prominent. Risk analytics must be built on a firm data foundation that allows firms to build up a clear view of risks across asset types and sectors. Valuation, pricing and risk management in an energy context require robust and flexible technology solutions, with a specific range of functionalities which are either not common or as prevalent in other markets.

The report aims to help buyers decide which solution or solutions meet their needs and provides in-depth coverage of regulatory requirements, business requirements and  the competitive landscape for leading Energy Trading Risk vendors.

The report uses Chartis’s RiskTech Quadrant™ to explain the structure of the market and the vendor landscape. The RiskTech Quadrant™ uses a comprehensive methodology of in-depth independent research and a clear scoring system to explain which technology solutions meet an organization’s needs.

A free executive summary of the report can be downloaded at http://chartis-research.com/research/reports/energy-trading-risk-management-systems-2013