Commodity trading risk management (CTRM) systems have become an essential tool for managing commodity trading risks. The technology behind these systems has advanced significantly in recent years, and many of them now offer sophisticated functionality for managing market risk. However, the question remains whether these systems are sufficient for managing risks beyond market risk. To...Read More

Value at Risk (VaR) is a widely-used statistical tool in risk management that measures the potential loss in a portfolio of assets or investments. VaR is particularly useful in commodity trading risk management during extreme volatility events, as it can help traders estimate the maximum potential loss that could occur due to adverse market movements....Read More

The world is currently undergoing a major shift in the way we produce and consume energy, driven by the urgent need to address climate change. As a result, renewable energy sources such as solar and wind power are rapidly gaining market share, and energy storage technologies such as batteries are becoming increasingly important. Copper, nickel,...Read More

The ongoing conflict between Ukraine and Russia has had a significant impact on gas prices and the security of supply in Europe. While the European Union has so far been able to weather the energy crisis caused by the war, preparations must be made for the winter of 2023-24. This requires gas storage facilities to...Read More

In the quest for a greener and more sustainable future, the role of battery metals and rare earth elements has become increasingly crucial. As the world transitions towards cleaner energy sources and electrification, these essential materials have emerged as the powerhouses behind the technology driving this transformation. In this blog, we will explore the significant...Read More

In today’s rapidly changing energy and commodities markets, it is crucial for companies to stay ahead of the curve and adapt to the evolving landscape. One area that requires constant attention and optimization is the Commodity/Energy Trading and Risk Management (C/ETRM) infrastructure. As market dynamics shift and regulatory requirements become more stringent, companies need to...Read More

In the turbulent world of commodities trading, companies take on substantial counterparty risk whenever they enter into a transaction. With the potential for major losses if a counterparty defaults, effectively managing counterparty risk is crucial yet challenging. This article examines key strategies and tensions in mitigating counterparty risk from the perspectives of both traders and...Read More

Energy and commodity trading firms operate in dynamic markets filled with volatility and uncertainty. Innovative technologies like artificial intelligence (AI), blockchain, digital twins, and advanced analytics are creating new opportunities but also pose implementation challenges. This article analyzes key emerging technologies and real-world use cases that could give trading companies a competitive edge. AI and...Read More

Metal prices have always been notoriously volatile due to the dynamics of supply, demand, and other market forces. But recent years have seen extraordinary metal price swings leaving metals companies exposed to higher risks. For example in H1 2022 alone, nickel prices doubled in a matter of days on the LME amid supply concerns, while...Read More