What Happens Next in Commodity Trading? SunGard Cites Three Ways to Meet New Challenges in Valuation, Risk and Return
Kirk Howell, vice president, product development of SunGard's Kiodex business unit, says firms can use technology to help improve transparency and risk management in commodity trading.
New York, NY (Vocus/PRWEB ) May 7, 2009 -- Kirk Howell, vice president, product development of SunGard's Kiodex business unit, says firms can use technology to help improve transparency and risk management in commodity trading: "Increased volatility in commodities is driving a new risk landscape involving concerns over counterparty risk and the lack of investor confidence. As a result, firms will increasingly require independent data and integrated solutions to provide more transparency into the valuations and risk associated with trading commodity derivatives." Click here to view Kirk's video.
In the commodity trading industry, rising concerns over bank stability, access to credit and a growing number of cases of fraud are making financial institutions reluctant to shoulder counterparty risk. At the same time, firms need greater transparency into portfolio valuation, risk and return. As a result, investor demand for independent third party valuations is growing rapidly amid a fundamental shift from over-the-counter (OTC) to cleared trading. SunGard provides real-time commodity trading, position keeping and risk systems delivered in a Software-as-a-Service (SaaS) environment to help traders, risk managers and investors meet time-to-market requirements with minimal IT support and maintenance.
Three Key Trends
| | - OTC to cleared trading: the move from OTC to exchanged-based and listed contracts is driving greater transparency into valuation and counterparty risk.
- Portfolio valuation: there is an increasing desire for third party validation and valuation of books and positions based on independent data in order to provide accurate, unbiased valuations and therefore greater transparency
- One-touch technology solutions: commodity traders increasingly desire rapidly implemented, on-demand technology solutions that handle trades from inception through expiration
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James Rigney, Etihad Airways' executive vice president finance, said: "SunGard's Kiodex provides a completely automated environment for trade execution and administration, risk management, hedge accounting, independent data, models and custom reporting in one solution that is easily and quickly implemented in a SaaS environment."
Links:
What Happens Next: Commodities Trading
SunGard's What Happens Next / City Days site
Six Guidelines to Effectively Manage Your Commodity Risk
A Case for Transparent Valuations of OTC Commodity Contracts in Tumultuous Times
About SunGard's Kiodex
A Web-based trading and risk management solution for commodities traders, delivered on a Software-as-a-Service basis, Kiodex integrates deal capture and risk management capabilities with valuation models and independent market data. Traders, hedge funds and corporations with exposure to commodity prices use Kiodex to help measure risk, design optimal hedging strategies, improve price execution, and comply with accounting best practices. Visit SunGard's Kiodex at www.sungard.com/kiodex.
About SunGard
SunGard is one of the world's leading software and IT services companies. SunGard serves more than 25,000 customers in more than 70 countries, including the world's 25 largest financial services companies.
SunGard provides software and processing solutions for financial services, higher education and the public sector. SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software.
With annual revenue exceeding $5 billion, SunGard is ranked 435 on the Fortune 500 and is the largest privately held business software and services company on the Forbes list of private businesses. Based on information compiled by Datamonitor*, SunGard is the third largest provider of business applications software after Oracle and SAP. Continuity, Insurance & Risk has recognized SunGard as service provider of the year an unprecedented five times. For more information, please visit SunGard at www.sungard.com.
*January 2009 Technology Vendors Financial Database Tracker http://www.datamonitor.com
Trademark Information: SunGard, the SunGard logo and Kiodex are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.
For more information, contact:
Adriana Senior
SunGard
Tel: +1 718-578-1130
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