Tags: CTRM, ETRM, regulatory compliance, risk management, software, total ownership cost
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.”
Tags: C/ETRM, Deal Capture, Decision Making Support, Delivery, Front Office, Nomination, Position Reporting, Price Curve Management, Price Data Import, Scheduling, STP, What-If Analysis, Workflow Automation
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
6 C/ETRM System Downfalls to Avoid: Part Two
Read Part One
Commodity 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.
Tags: C/ETRM, C/ETRM Downfalls, Pioneer Solutions
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.
Therefore, 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
Tags: C/ETRM, FARRMS, Financial and Regulatory Risk Management Systems, next generation software, Pioneer Solutions, top Etrm system, workflow
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.
FARRMS 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.
Tags: Compliance management software, Compliance solutions, ComplianceTracker, dodd frank, EMIR, energy regulation, ETRM, eu regulation, Pioneer Solutions, REMIT
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.
Tags: ccp, central counterparty, Compliance software, ComplianceTracker, counterparty risk, Dodd-Frank Act, EMIR, MiFID, operational risk, OTC compliance reporting, OTC derivative, Pioneer Solutions, REMIT, Trade Repository
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.
Tags: asc815, asc820, best credit risk system, Commodity Energy Trading and Risk Management -Etrm, Credit Risk Software, credit value adjustment, CVA, derivative accounting, DVA, FAS 133, FAS 157 compliance reporting software system, Pioneer Solutions, regulatory compliance, TRMTracker
Written by Uday Baral, Pioneer Solutions’ President/CEO
Are you prepared for financial regulations related to Credit Value Adjustments and Fair Value Disclosure?
Two 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.
Tags: 2013, compliance tracker, CTRM, Dodd-Frank Compliance, EMIR, Energy Risk, energy risk rankings, energy risk software survey, Environmental Compliance Solutions, etrm budgets, Pioneer Solutions, regulatory compliance, REMIT
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.
Tags: Compliance software, Compliance solutions, Dodd-Frank Act, ETRM software, Pioneer Solutions
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.
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.