London, July 2010

Turning Quantitative Models & Systems for physical and derivatives portfolios in energy and commodity markets into Decision-Support Tools. This article explores some of the benefits of having a shared risk information environment to support trading, valuation, hedging, and risk management decisions. The risk technology and models used by most Energy Trading and Risk Management Systems (ETRM) is years behind from the state of the practice in financial institutions. There are multiple reasons for this system sub-performance.

By Carlos Blanco & Michael Pierce; NQuantx