Mark-to-Market and multiple greeks calculations in new release CTRM for JD Edwards
Hoevelaken, October 7 2019
In 2019 Cadran Consultancy added important features to its Commodity Trading & Risk Management solution for JD Edwards (CTRM4JDE). The major enhancements and new features in the new releases 3.3 and 3.4 include improvements in Trade and Logistics: Mark-to-Market functionality, extended futures and options support, multiple greeks calculations, delivery lines splitting and improved contract matching.
Support the end-to-end value chain
Sjors Oosterwaal, CTRM Product Owner comments: “These releases bring significant improvements on both trade and logistical aspects in line with our vision to support commodity traders across their end-to-end value chain. The new functionality has been developed in close cooperation with our clients and prospects. We are extending our partner network and remain committed on staying close to our user group. With a strong data analytics solution and a product that supports the value stream of our clients we are the ERP Business Partner of the future for commodity traders”.
User Experience and interconnectivity
Mark Kamphuis, CTRM Business Unit Manager about the future of CTRM4JDE: “The module that is seamlessly integrated with JD Edwards enables commodity traders to make use of a mature ERP system while managing their position, risks and processes across their business. Over the last year we focused on both adding product functionality and on growth of the team. With a strong vision to improve in further integration with the core of JD Edwards, improving user experience and connecting to best of breed solutions, the future of CTRM4JDE is strong. Cadran has evolved to a software development and implementation company with solid knowledge of industry verticals”.
Improvements in Trade and Logistics
Cadran releases two versions of its software annually. The releases for this year have come in close conjunction to each other. Release 3.3 focusses more on Trade, where Release 3.4 focusses more on Logistical Planning and Transport.
Release 3.3: Mark-to-Market and multiple greeks calculations
With further support on trade products such as futures and options, commodity traders will be able to manage their business in a more holistic way. New Trading features include:
- Mark-to-Market: One of the core functionalities added includes the mark-to-market functionality. This automatic processing allows for marking your physical inventory, futures, options and FX contracts against a defined market. This can be done automatically and overnight.
- OTC traded futures and options are now supported and can be chosen in conjunction with exchange traded futures.
- Hedging: The new release provides functionality to maintain hedges using all different types of contracts. So any combination is possible: hedging Sales with Purchase contracts, FX hedges but also hedging options with inventory or contracts to support multiple trading strategies.
- Options: Entering both European and American style options has been added. Functionality to exercise the American style option has now been added.
- Automatic settlement of both Futures and Options has now been added. This allows for automatic and overnight processing of futures and options, while allowing for a “proof” mode before the final run is done. Physical contracts can now be automatically priced overnight. Pricing rules are based on derived markets, allows for partial pricing, can be offset, and can be done at multiple times during logistical execution. The system also allows for re-pricing the moment the title transfer has taken place.
- Multiple greeks calculations: Traders use different Greek values, such as delta, theta, and others, to assess options risk and manage option portfolios. Multiple Greeks calculations have now been added into support. With this functionality many of our clients will be able to integrate their trading position in a more holistic view with their physical position.
Release 3.4: Logistical Planning and Transport
Release 3.4 brings significant improvements in logistical planning and transport. The following functionalities allow our commodity traders to manage their logistical execution more precisely and efficiently:
- Splitting of delivery lines
- Better overviews on the physical deliveries available for allocation
- Advanced search based on characteristics, period or item allow for speedier execution.
- Multiple commodities into a single transport booking. Thereafter it can now be managed across multiple legs and loads. The lot costing while managing the transport has been improved to provide better insights.
For more information about our CTRM solution for JD Edwards, please click here.