Commodity Hedging
Volatility in the price of commodities is one of the most significant business risks that corporations face today. As firms increasingly look to hedging programs to protect themselves against commodity price risk, they need an integrated commodity risk management solution that supports their business process and overall risk management framework.
AvantGard Commodity Hedging can help your firm to effectively manage commodity price risk. By offering a Web-based risk management platform that combines four key services – independent market data, risk reports, valuation models, and deal capture – in one easy-to-use application, AvantGard Commodity Hedging can bring you and your company value at many levels:
- Chief Financial Officers benefit by reducing earnings volatility associated with commodity market movements and are insured against accounting blowups and earnings restatements.
- Risk Managers gain the ability to understand exposure by counterparty, region, plant, etc.
- Hedgers/Traders appreciate the ease of use of the platform and ability to obtain fair prices for trades prior to execution.
Features:
- Pricing calculators
- Cash flow at risk analysis
- Global market data for independent forward curves, volatility surfaces and correlations to help value hedges and feed risk analyses
- Stress testing and scenario analysis
- Complete set of ready to use risk reports
- Establish strict access rules for trading, valuation, reporting and access by portfolio
Benefits:
- One-click settlement process
- Systems integration
- Detailed invoicing, trade ticket, trade confirmation and profit and loss reports
- Integrates data to assist in better risk management
- Gives a comprehensive view of risk from multiple perspectives
- Provides general indicators of overall risk exposure
- Generates reports used to deliver information throughout your risk management operations