Risk management: Energy trading systems
Introduction
This special three-part report highlights software vendor risk management approaches within energy trading systems. It looks at what functionalities commodity market participants should be considering when building or buying trading and risk management systems. Instead of tearing down the old order, or duplicating systems across services, they should be welding an in-house infrastructure to a best-of-breed external financial architecture, thus offering the best of both worlds.
Rapid advances in technology and data management have brought about new challenges in the fields of cybersecurity, regulation and compliance. Market participants should be giving more prominence to IT architects in order to benefit from advanced technology and use software in such a way that the organisation secures business continuity.
ETRM systems emerge as the business cockpit
Chartis Research: In an increasingly complex marketplace, energy trading and risk management (ETRM) systems have become the flight deck from which firms pilot their entire business activity. Read the full article
Staying agile and fit for purpose in commodity trading systems
Murex: Commodity houses are searching for more sophisticated ways of enhancing their risk management systems and finding radical solutions to new challenges. Read the full article
Building and protecting the IT architecture of the future
BP: Businesses should consider hiring an IT architect to direct software configuration, and should use technology to monitor misconduct, prevent market manipulation and mitigate a range of risks. Read the full article
More on Risk management
Energy Risk 2026 Software Rankings: CTRM landscape needs to support resilience
Commodity firms’ software choices across the CTRM landscape are crucial amid current uncertainty
EU can handle energy price pressure – it’s been here before
Reforms made after Russia’s invasion of Ukraine have made region more resilient to energy shocks, officials say
A Hormuz tipping point may be days away
Agent-based model suggests delays and shortages likely to accelerate after four weeks
ENGIE’s Daronnat: pricing flexibility in the German battery market
Head of flexibility and structured origination in Germany discusses the role of FPAs and what risk teams must consider
Next-gen PPA contracts reshaping European power markets
As energy market participants seek new ways of capturing value from volatility, new skills are required to structure and price increasingly complex power purchase agreements
Energy Risk reaction: Impact of Middle East conflict on hedging and longer term risk
Energy Risk talks to Riccardo Rossi at Centrica Energy and Rob McLeod at Hartree Partners about the impact of the Iran crisis so far on firms exposed to energy
Iran strikes a stress test for CCP margin models
CME’s Span2 and Ice’s IRM2 are performing as advertised. The next few days could test their mettle
Energy Risk Debates: the role of the risk manager
Panellists discuss the different roles of the risk manager, how much standardisation there is across firms and whether the role is ever clear