Commodity Trading
Reduce Risk
& Complexity
Enhance risk governance with advanced tools designed to accurately measure market risk for commodity trading firms.
Support Risk Measures
Accurately monitor & manage commodities exposure
There are a number of market related risks involved with trading commodities. To manage these risks and minimise their effect firms need to adopt a more active approach to managing risk. As a result, firms require the right tools to accurately monitor and manage their commodities exposure. Quantifi supports a full complement of market risk measures along with complex scenarios and stress tests. Key features include sensitivities to all market factors, comprehensive “what-if” analysis, regulatory stress tests, such as HVaR, and tail measures like expected shortfall.
A single view of risk across all financial and physical assets
Ability to aggregate data across
multiple regions
Support for stress testing i.e. MC VaR, Historical VaR and expected shortfall
key features
A powerful, high performance platform
Aggregated Risk View
A single view of risk across all financial and physical assets.
VaR Calculations
Calculate VaR across an entire portfolio using historical or Monte-Carlo methodologies.
Sensitivities & Hedging
Comprehensive sensitivity analysis with consistent calculations across all asset classes.
Simplified Data Management
An ETL framework for managing data feeds and a NoSQL database environment for high-performance and agile processing of information.
‘What-if’ Analysis
A powerful and flexible risk engine provides advanced ‘What-If’ analysis to all market observables for accurate management of risk.
Stress Testing
Integrated functionality to stress product attributes or market risk factors. Portfolio can be stress tested at future time points.
CHALLENGES
Why Quantifi?
At Quantifi, we understand the challenges that commodity trading firms face, and we offer solutions that can help them transform their business.
Want to save time and automate manual processes?
Manual, bespoke processes are slow and error prone. Commodity trading firms are looking to automate processes so they can reduce costs and respond faster to volatile markets.
Quantifi automates complex tasks to reduce operational risk, eliminate redundant processes and increase resource efficiency. These automated processes also speed up decision making, allowing firms to respond faster to markets events and mitigate losses.
Need to know accurate exposure to a counterparty at any point in time?
Get better answers, faster. Quantifi’s CCRMS provides a consolidated, real-time view of exposures and risk globally across the firm.
Reduce risk and complexity by monitoring credit risk concentrations by counterparties, commodities, business lines, countries etc. in real-time and conduct real-time credit line checks on new trades added to existing portfolios.
Managing and maintaining multiple systems?
Global commodity trading firms must manage an array of counterparty risks. Historically, firms have relied on multiple tools for counterparty credit risk management, including Excel spreadsheets, for exposure calculations and reporting, and email to communicate credit decisions.
Quantifi’s single, fully-integrated solution provides enterprise-wide credit and counterparty risk management.
Quantifi’s broad functionality reduces the need for multiple systems.
Looking to implement a consistent counterparty evaluation methodology?
Quantifi’s CCRMS was built in collaboration with world-leading commodity trading firms. This collaboration resulted in a solution designed to standardise counterparty evaluation enterprise-wide.
Quantifi is a single solution for all participants in the credit decisions and risk management processes and facilitates a consistent credit policy across the enterprise. Users can model counterparty hierarchies and corresponding exposure rollup rules and have access to counterparty scoring and limit assignment based on multiple methodologies.
Difficulty managing data?
Providing access to the right data and analytics to the right people is crucial to commodity trading firms. Quantifi integrates with data science technology to provide cloud native, scalable performance for large data sets.
Rich ETL capabilities seamlessly integrated with existing data repositories and third-party data providers.
COFCO International, a world-class integrated global agribusiness, selected Quantifi to help monitor, manage and report their credit & counterparty risk. COFCO recognised that Quantifi could help with their plans to grow into a new global force in agricultural trading.
NEWS
Quantifi Voted Best Market Risk Solution Provider at Waters Rankings Awards
Hosted by WatersTechnology, Waters Rankings recognise leading technology providers as determined exclusively by industry specialists from the global capital markets community.
We are delighted to have been recognised by Chartis for our depth of functionality as a commodity trading risk management system. 
Rohan Douglas, CEO, Quantifi
insights
Navigate major trends & developments shaping the industry
Navigating the volatility and complexity of commodity markets
Avadhut Naik, Head of Solutions at Quantifi, explores how firms are reassessing their commodity risk management processes and systems to navigate a volatile and complex market.
Quantifi Commodities Counterparty Risk Management (CCRM)
Commodities are one of the fastest growing markets and over the past two decades have become truly globalized. Trading in commodities requires firms to enter into complex credit arrangements for the sale and transport of goods across multiple regions.
Commodity Technology Advisory: Q&A with Avadhut Naik, Head of Solutions, Quantifi
The process of trading, procuring and selling commodities has always been risky and intricate, and it’s only becoming more complex. Market structures have shifted, and so risk management solutions must respond to that change.
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