Performance Enhancement
A leading global trading firm faced a significant challenge integrating trades from diverse external sources into their Endur ETRM system. With multiple ETRMs catering to different commodities, the lack of a standardized validation process led to errors, delays, and increased operational overheads. Manual validation methods were time-consuming and prone to inaccuracies, posing risks to the integrity of trade data and regulatory compliance.
KEY RESULTS
37%
Improved Data Accuracy: Quarter on quarter from the time of deployment
0.5%
Enhanced Operational Efficiency: Reduced errored trade count total trades per day
40%
Risk Mitigation: Increase in timely reporting to trade repositories
~2000 hours
Streamlined Reconciliation: Reduced manual verification hours for front-office (2 Desks & 7 Members)
A Systematic Approach to Project Success
Drawing upon our extensive expertise in ETRM systems and technology, we architected & developed a middleware layer that served as a data layer & pipeline between external trade sources and ETRM systems. Our solution incorporated the following critical components:
Centralized Validation Tier: By introducing a common validation tier for all ETRMs, our solution streamlines the validation process. Trades from external sources undergo validation before entering respective ETRMs, eliminating the need for multiple validation methods and reducing redundancy in the workflow.
Data Standardization: The middleware layer handles various data formats such as XML, JSON, and FIX, converting them into a standardized XML format. This standardization ensures uniformity in data processing and facilitates seamless integration with the validation tier.
Real-time Error Management: Our solution incorporates a dashboard within the validation framework, providing traders with real-time visibility into all trades entering the system. Any errored or misaligned trades are promptly flagged, allowing traders to review and rectify discrepancies efficiently. This proactive approach minimizes the risk of erroneous trades entering the ETRM systems.
Enhanced Trade Modeling: Through enhancements to the Endur data model and GUI screens using OpenComponent library extensions, our solution enables the modeling of complex trade structures such as multi-commodity trades, multi-parcel modules, and multileg trades in Endur. This capability ensures that trades from various external sources are interfaced into Endur without any errors or missing data, further optimizing the trading process.
Reduction of Reporting Errors: By pre-validating trade data before it enters the ETRM systems, our solution significantly reduces reporting errors, including those related to Profit and Loss (PnL) calculations and position reporting. This proactive validation approach minimizes manual work and reprocessing efforts, which would have been necessary to rectify incorrect trades at later stages in the trade lifecycle.
Audit Trail Enablement: Our solution provides comprehensive audit trails, capturing all trade validation activities and changes made by traders. These audit trails not only facilitate regulatory compliance but also support reconciliation efforts, ensuring transparency and accuracy in trade data management.
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Key Takeaways
By centralizing validation, standardizing data formats, implementing real-time error management, enabling enhanced trade modeling, and reducing reporting errors, our solution empowers traders to operate with confidence, knowing that their data is accurate, processes are streamlined, and regulatory compliance is assured. Partner with Value Creed to navigate the complexities of the energy trading landscape with agility and precision, driving business growth and maintaining a competitive edge in the market.
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