The Financial Institution Commodity Procurement Solution – Commodity XL

Raw Material and Commodity Procurement

Major financial institutions have historically been, and continue to be, major liquidity providers on the global futures exchanges. They employ a broad range of investment strategies, including speculation, internal risk management, and structured product hedging.

Financial institutions engage in the trading of physical and financial commodities, including energy, biofuels, metals, emissions, freight, and agriculture.

The Financial Institution Commodity Management Solution

Trading

Commodity XL provides complete control over trading operations. With Commodity XL traders can better manage current positions and gain real-time information to take advantage of market movement. Commodity XL integrates physical and financial trading, improves trading efficiencies with deal entry templates/blotters, provides sensitivity analysis, and enables “what-if” scenarios.

Price Risk Management

Commodity XL provides sophisticated tools for portfolio stress testing and sensitivity analysis to run what-if trades. Commodity XL analyzes real-time position and exposure — market, volumetric, credit, delivery, and FX risk — at granular and rolled-up levels for optimized price risk management.

Counterparty Credit Risk Management

Commodity XL for Credit Risk proactively measures, manages, and mitigates the risk arising from counterparty default. The solution addresses the entire credit risk process with a full range of credit analysis and operational tools in 3 key areas: exposure, collateral, and counterparty management.

Hedge Accounting

Commodity XL for Hedge Accounting™ manages the daunting set of requirements under hedge accounting regulations, including the detailed testing, documentation, and reporting that must be performed in order to qualify for hedge accounting status. The solution ensures full compliance with ASC 815 (FAS 133), ASC 815-10 (FAS 161), IAS 39 (IFRS 9) and similar national hedge accounting regulations.

Fair Value Disclosure

Commodity XL for Fair Value Disclosure™ provides the tools and framework to define, measure, and manage fair value levels and meet all disclosure requirements for ASC 820 (FAS 157) and IFRS 7 compliance.

Emissions

Commodity XL for Emissions™ manages the full scope of emissions trading and management across all regulatory and compliance schemes on a multi-commodity platform.

Commodity XL – The Complete Solution for the Financial Institution Industry

Commodity XL provides an enterprise view of position, coverage, and risk for increased transparency and manages multiple commodities on an integrated platform. It delivers superior, real-time business intelligence for proactive decision-making and competitive advantage.