Tags: commodity trading & risk management-CTRM, CTRM, CTRM defined, CTRM definition, Energy Trading and Risk Management-ETRM, ETRM back office defintion, ETRM defined, ETRM software, Pioneer Solutions
Back-Office ETRM-CTRM definition
Back-office ETRM-CTRM Defined
The back-office ETRM-CTRM processes involve the settlement, hedge compliance-FAS 133 &157 reporting, invoicing and accounting of all ETRM-CTRM trading activities.
These activities are complex in nature and require unique skills to manage the complexities associated with derivative hedge accounting compliance, settlement and GL (AR/AP) management.
Middle Office C/ETRM Defined
A done deal can immediately affect an existing portfolio’s market position, long or short. It is the risk manager’s job to see that the trade is managed from a portfolio perspective. This often involves hedging or balancing the portfolio with the goal of mitigating market exposure. This process is often accomplished using financial instruments. For example, options or commodity financial hedge instruments, such as NYMEX instruments, to “lock-in,” profits or losses by hedging or offsetting a long or short position with a trade.
Tags: commodity trading & risk management-CTRM, CTRM defined, CTRM definition, Energy Trading and Risk Management-ETRM, ETRM, ETRM defined, Trading Risk Blog
What is ETRM -Defined?
Energy Trading and Risk Management –ETRM definition- ETRM refers to the business processes associated with managing complex energy trades and/or portfolios of physical assets; from energy trade or position deal capture, to risk management, to deal settlement and invoicing. ETRM is the entire end-to-end process of managing the physical and financial trade or deal lifecycle of an energy position.