MARKET BRIEF
Cost Control and
Compliance for Large
Consumers of Energy
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WHITE PAPER
Analyzing Counterparty
Credit Risk

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WHITE PAPER
A Practical Approach
to Risk Management

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WHITE PAPER
Utilizing Technology to
Improve Trading Profit-
ability and Reduce Risks
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Press Releases

	Associated Energy Services Selects Allegro Energy Trading and Risk Management

	Bayerngas GmbH, Munich Selects Allegro Development Energy Trading and Risk Management Solution

	Allegro Extends Energy Trading & Risk Management (ETRM) Solutions to Energy Consumers

	Allegro Development Responds to CFTC's Compliance Delays

	Ameren Illinois Goes Live on Allegro Energy Trading and Risk Management

	Allegro Named a Leader in the IDC MarketScape: Worldwide Energy Trading and Risk Management 2013 Vendor Assessment

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Supporting Material

Market Brief 476Kb

Logistics 424 KB

Case Study

A national coal company that regularly participates in multi-party transactions needed a comprehensive solution to address factors such as product quality, transportation, pricing and regional sourcing which were critical to their operations. With Allegro, the company can manage the complete contract and transaction lifecycle and improve its risk management strategies to optimize production decisions and contract profitability.

Additionally, due to the illiquidity of the coal market, the effectiveness of risk management strategies can have a substantial impact. Allegro’s trading and risk management solutions were implemented to provide the company with a fully integrated solution that spans the value chain from trade capture to invoicing and mitigates their exposure to risk. The comprehensive risk solution also allows the company to act as its own credit entity, fully equipped with functionality to conduct business with a large number of counter parties, working within pre-determined levels of risk

Coal ETRM Solutions

Allegro ETRM Solutions for Coal Producers, transporters, blenders, marketers and consumers of coal all rely on Allegro’s comprehensive coal solution. Coal marketing, scheduling and transportation complexities pose substantial challenges for producers and consumers of coal. Allegro’s integrated solutions track sales, purchases and inventories as well as associated quality attributes and all related product information.

From mining and transportation to power generation, Allegro’s coal solution supports deal capture, contract management, risk analytics and business processes as well as marine, rail and truck logistics. Valuation, risk management, settlement and accounting are fully integrated.

Allegro’s comprehensive solutions provide uniquely valuable tools across the entire coal business lifecycle.

Allegro’s Coal Marketing components support all business processes, such as contract capture and management, physical and financial trading, and the ability to accurately settle and invoice physical, financial and other transactions. Additionally, integrated real-time credit risk capabilities help manage counterparty credit ratings and provides limit tracking.
Allegro’s Coal Logistics components support every aspect of the physical management of coal supplies. Schedulers can manage bulk products scheduling, transportation and actualization activities for all modes of transportation including vessel, barge, rail and truck, as well as assign quality parameters at a shipment or unit level.

Optimal Software Components for Coal

Trade Execution - Provides tools to efficiently capture and confirm physical and financial trades for commodities.
Trade Strategy - Provides the ability to define trading strategies, which can be made up of existing positions and hypothetical positions, to allow for analysis of different trading scenarios while setting operational goals and limits.

Position - Allegro Position provides trading and risk management valuation metrics including mark to market, profit and loss, and position limits.
Simulation - Provides a set of tools to help analyze the impact to exposure and profit and loss resulting from movements in the market.
Credit - Delivers advanced credit monitoring, analysis, scoring and rating, and overall counterparty credit management to accurately measure current and future exposure along with using robust credit risk models to accurately rate counterparty credit scores in a timely manner.

Logistics - Allegro Logistics 8.1 provides management of multi-commodity logistics across various carrier modes such as truck, rail, pipeline, barge and vessel.

Contracts - Captures and manages all contract information across the enterprise and through the entire contract management life-cycle.
Settlement - Provides the tools that settle and feed data to invoice physical, financial and other transactions associated with commodity transactions and logistical movements.
Net Valuation - Enables the valuation of inventory along with the ability to complete net forward, net back, and profit margin calculations across commodities, including commodity value, transactional, and transportation costs.
Price - Allegro Price captures and manages price indexes, commodity prices, forward curves, volatilities, and correlations.
Currency - Provides the solution to enable management of multiple currencies including the ability to capture currency exchange rates and currency trading.
Hedge - Assists with hedge accounting and fair value disclosure requirements by providing robust tools for analysis and reporting such as Financial Instrument Management, Currency Management, Interest Rate Management, Fair Value Management, Fair Value Option Management and Disclosure Management.
Emissions - A dedicated component providing efficient, and manageable yet comprehensive capability to accommodate trade activity for either renewable energy credits or emissions certificates. This functionality is unique to the market, in that it not only supports current market conditions but allows customers to be ahead of the curve as mandates by various global requirements change.

Workflow - Alert-based workflow engine that automates business processes through task and approval tools and automated control management, as well as having the ability to seamlessly integrate with third-party software and database systems.
Price Connect - Provides a standard interface to market prices from different data providers. This is a one way import of data from the market provider to Allegro to be used for pricing data.
Exchange Connect - Provides a standard interface to electronic trading exchanges to allow the submission and receipt of bid and offer data while allowing for execution and confirmation of transactions through the exchange. The interface is bilateral allowing for straight through processing of transactions from and to the exchange directly from the Allegro environment.

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Optimal Software Components for Coal