New Energy Options Desk and Quant Model Integration

Client Story: Commodities London / Hong Kong

MapleRisk have been successfully helping our global markets clients deliver complex change programmes through an Agile DevOps approach. Our domain experts are embedded within your team. They collaboratively work within our Agile DevOps framework that draws from multiple disciplines including solution architecture, engineering, and data scientists backed by a deep understanding of front-to-back trading and risk management fundamentals.

One of Asia’s largest commodities traders, was setting up a green-field energy options desk and needed an implementation partner to deliver a trading and risk management platform for the new business.

The client selected Sungard Aligne as the system of record and needed to integrate their proprietary quant models and develop bespoke risk reports alongside developing a workflow for the desk.

They wanted the implementation partner to provide quantitative development expertise alongside deep knowledge of energy derivatives product knowledge and risk management best practices.

MapleRisk Approach

MapleRisk worked closely with business stakeholders to understand their business model and growth drivers and translated business stories into trading platform functional requirements.

Together with the client, we designed a platform strategy and front-to-back business workflow for the options desk alongside an agile delivery plan for quant model integration and bespoke risk management framework.

MapleRisk worked with the client and the vendor to specify and embed the functional enhancements in pre-deal analytics, modelling and volatility management. MapleRisk utilised DevOps methodology to deliver model integration, risk management tools, and a front-to-back workflow.

Outcomes

As a result of MapleRisk’s expertise and engagement a solution was found that leveraged the transaction pipeline of the trading system whilst utilising in-house developed proprietary quant models to generate valuation and position reports.

The business driven solution expanded on what had been deemed possible allowing the client to start trading much sooner than expected whilst maintaining the structure and support ability of the existing trading platform.

MapleRisk delivered an automated workflow eliminating manual interventions and workarounds.