Category Archives: Technical

Wishful Thinking and the NIH Syndrome

Post by Pioneer Solutions on March 25, 2015

Wishful Thinking is an attitude or belief that something you want to happen will happen even though it is not likely or possible instead of by appealing to evidence, rationality, or reality.

Not Invented Here (NIH) is a state of mind or philosophy that stems from a belief that in-house systems are inherently more suited to one’s organization than third party solutions. This results in a tendency to attempt to “reinvent the C/ETRM wheel.”

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C/ETRM Business Processes
Series Part One: Front Office

Post by Pioneer Solutions on December 30, 2014

FRONTOFFICE

This article is aimed to provide a brief overview of the front office business processes Commodities and Energy Trading Risk Management (C/ETRM) software solutions are designed to encompass. This is the first of a three article series that breaks C/ETRM system functionality into three categories and defines the business processes involved in each of those areas.  Continue reading

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6 C/ETRM System Downfalls to Avoid:
Part Two

Post by admin on December 4, 2013

6 C/ETRM System Downfalls to Avoid: Part Two
Read Part One

Untitled-2Commodity and Energy Trading Risk Management, or C/ETRM, systems are a vital piece of any organization needing to minimize operational risks, keep up with industry regulations and standards, and increase process efficiency. As most in the industry can attest, however, C/ETRM systems vary greatly in capabilities and selecting the right one for your business can be a daunting task. Many times, these problems don’t surface until after the contract is signed and implementation has begun.

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6 C/ETRM System Downfalls to Avoid:
Part One

Post by admin on November 20, 2013

6 C/ETRM System Downfalls to Avoid: Part One
Commodity and Energy Trading Risk Management, C/ETRM, systems are vital for any organization needing to minimize operational risks, keep up with industry regulations and standards, and increase process efficiency. As most in the industry can attest, however, C/ETRM systems vary greatly in capabilities and selecting the right one for your business can be a daunting task. Many times, these problems don’t surface until after the contract is signed and implementation has begun.

many_roads_sign_88995475Therefore, it is of the utmost importance that key factors in choosing a system are addressed prior to selecting and attempting implementation. These days, companies are getting better at screening vendors beforehand, during the RFI and RFP process. The following are reasons one through three of the two-part series titled “6 C/ETRM Downfalls to Avoid.” This list is not exhaustive, but highlights commonly overlooked issues you should look for. Continue reading

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What is FARRMS?

Post by admin on September 30, 2013

The Financial and Regulatory Risk Management System, or FARRMS, is the founding platform on which Pioneer Solutions’ suite of six software modules are based. Since its inception in 2002, FARRMS has been organically developed by industry professionals and is the core of our suite of solutions.

trm_processFARRMS is completely web-based and template and formula-driven, providing the user a highly configurable environment for the front-to-back office workflow automation of business processes. The system facilitates collaboration among front, middle and back-office staff and management with a built-in compliance/workflow management layer and messaging features.

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How Can C/ETRM Compliance Solutions Help My Business?

Post by admin on September 12, 2013

energy regulation compliance solutions

How Can C/ETRM Compliance Solutions Help My Business?
With regulations such as Dodd-Frank, the European Market Infrastructure Regulation (EMIR), and the Regulation on Energy Market Integrity and Transparency (REMIT) continuing to impact energy and commodity trading operations this year, most businesses have found themselves adding “compliance ready” to their list of C/ETRM system requirements.

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Regulatory Impact on Energy Companies in Europe

Post by admin on June 5, 2013

regulations

When the credit crisis was evaluated during the G20- summit, the over-the-counter (OTC) derivative market was flagged as one of its primary causes. For this reason, the Dodd-Frank Act (US) was born. In Europe, the European Market Infrastructure Regulation (EMIR) and and the Regulation on Energy Market Integrity and Transparency (REMIT) were developed, along with several  other regulations.

With regulations like the Dodd-Frank Act, EMIR and REMIT continuing to impact energy and commodity trading operations this year, many are wondering how organizations that operate in the European arena will be affected. The following is a discussion of how EMIR will affect the European Union and how your organization can be prepared.
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Credit Value Adjustment (CVA): Challenges and How to Manage

Post by admin on May 15, 2013

Written by Uday Baral, Pioneer Solutions’ President/CEO

Are you prepared for financial regulations related to Credit Value Adjustments and Fair Value Disclosure?

finregTwo counterparties are taking market risks as they enter into a trade. In addition, they are also taking credit risks against each other, due to counterparty default (i.e., counterparty credit risks).  Credit risks should be adjusted appropriately with credit/debt value adjustments (i.e., CVA/DVA) in order to reflect the adjusted value of the portfolio.

The FASB and IFRS accounting standards require fair value adjustments, due to credit risks. These requirements are dealt with in ASC815 (FAS133) and ASC820 (FAS 157) FASB standards in the US. Similarly, IFRS standards IFRS7, IFRS9 and IFRS13 define these requirements. Fair value hierarchy disclosure is also required by both FASB and IFRS standards.

While the concepts of these requirements are simple, proper implementation could not be more complex. Because of this, companies will require a solution that requires tight collaboration among market and credit risks and derivative accounting processes/solutions.

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ETRM Budgets and Regulatory Preparedness | 2013 Data Results

Post by admin on April 12, 2013

Energy Risk recently released the results of their 2013 Software Survey and Rankings. In these results, ETRM software vendors were ranked in several different categories on a variety of capabilities. (For Pioneer’s results, click here.)

In addition to surveying participants on vendor capabilities, the survey also gathered information from respondents about their plans and preparedness on certain issues. This year, the big topics were budget and regulatory compliance.

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The World of Dodd-Frank | Updates and How to Prepare

Post by admin on February 8, 2013

Prior to the election a few months ago, it seemed as if everything that had been developing in the world of Dodd-Frank was put on hold. Now, with the election and inauguration behind us and our country anticipating the next four years, those in the financial industry are realizing that this also means another four years of Dodd-Frank.

regulation

The last few years have meant several lawsuits, delayed deadlines and unending controversy surrounding the Dodd-Frank act and the regulations that loom. Some rulemaking requirements have been set while many others have missed deadlines or have yet to  even be decided. While many government agencies have already adopted Dodd-Frank and are reportedly more or less happy with the outcome,  other organizations remain far less certain. about the switch.

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