Replace the legacy product used to manage the complex trading portfolio of a natural gas trading company. This included physical gas, natural gas storage and transport assets, financial hedging, retail customers, and asset management agreements (AMA).
Due to limitations in the legacy product, most daily and monthly activities were done outside of the system, primarily in Excel spreadsheets. This created significant process inefficiencies in month-end reconciliation, particularly in scheduling, settlement and accounting activities.
The legacy product had limited risk capabilities and lacked ability to value storage contracts and produce an accurate real-time trading position. This resulted in many workaround external adjustments to support day-to-day activities
MRE implemented a CTRM using a comprehensive framework encompassing the client’s lines of business: trade capture, confirmations, risk and credit management, position management, settlements, accounting and reporting.
The client’s legacy system had many drawbacks and was unable to capture trade activity accurately, support valuations for complex transactions and integrate with downstream accounting system.
The implementation led to an opportunity for us to guide the client to improve internal controls through leveraging proper systems and business processes. The new system enabled improved management and business insight
The solution addressed the drawbacks from the client’s legacy system and provided significant improvements to process and efficiency.
Key focus areas included realizing “straight through” processing efficiencies and eliminate effort and potential errors from human intervention and reduce/eliminate manual processing.
Benefits included increasing the accuracy, timeliness, and efficacy of the following processes:
- Real-time position management
- Accurate capture of all trading activities
- Automated integration for accounting including WACOG
- Implemented Endur BI Solution (ODS) for easy-to-use reporting
- Real-time credit monitoring