Trade Execution provides trading and marketing staff with tools to efficiently capture and confirm physical and financial trades for energy commodities
Transacting in commodity markets requires real-time trading solutions that enable traders to instantaneously react to market opportunities. In addition, Energy Trading and Risk Management (ETRM) solutions must provide rapid deal capture, trader decision support tools, and superior market insight for the identification of arbitrage opportunities.
One component of Allegro’s integrated solution is the Allegro Trade Execution component. You can not only perform basic deal capture and trading functionality with speed and ease, the deal capture screens are configurable down to individual user preference. This includes default values and trade templates so that the specifics of each trade can be captured in the most efficient manner. Users can even copy and modify previous transactions to create new records quickly and easily.
Physical and Financial Deal Capture
Trade Execution can capture physical deals for all energy commodities, including internal transactions for inter-book and inter-company deals as well as physical exchange deals. It can capture most any type of financial deal, capture supply and demand load shapes, and automate deal confirmation online. It also creates confirmation statements for emailing or faxing directly to counterparties or brokers.
Integration and Workflow
When combined with the Allegro Price component, the Trade Execution component can utilize a wide range of pricing methods including fixed/floating, index and basket pricing. The component supports multiple units of measure, and can support multiple currencies when combined with the Allegro Currency component. Using Allegro’s Exchange Connect component, customers can enjoy real-time connectivity to execute trades on commodity futures exchanges, as well as real-time trade capture., alleviating trading administration staff from tedious, manual price entry.
Allegro’s configurable workflow and messaging functions provide customized approval mechanisms that can be setup within the system, and can automatically notify management, colleagues or external parties of actions required to complete deals. All actions are tracked and recorded by the system in a complete audit trail. This helps assure users and management that trading and risk management practices are followed and minimizes the potential for trader or credit limits to be exceeded. When combined with Allegro’s Credit component, credit limits and positions with trading counterparties can be checked and verified as part of trade entry. Credit positions can also be viewed for the current period and as many as six time periods into the future.