Multi-Commodity Risk Management "Overlay" System

The Client:

Trades and markets crude oil, natural gas, natural gas liquids, and refined products. With 3 business units and 3 different transaction management systems, they needed a consolidating system to aggregate positions for credit and market risk reporting.

Spectrum-Prime:

Built an "overlay" solution that combines positions from client's various systems to determine aggregated credit exposures and market risk position, including cross-commodity value-at-risk and netted credit exposures.

Resulting Benefits:

Provides reporting for banks and enables drilldown from counterparty down to transactions creating credit/market exposures. Highlights cross-commodity opportunities.