CTRM in a multi-asset class portfolio
A ComTechAdvisory Whitepaper
FIS AND ITS MULTI-ASSET-CLASS SOLUTIONS
FIS is one vendor that has specific energy and commodity solutions for various tiers and segments of the market , including Kiodex , XDM and Aligne . These software solutions have a large installed base in the commodities world and the company benefits from having a long track record of delivering and supporting energy and commodity-specific CTRM solutions around the globe . However , in its large portfolio of solutions , FIS also has two products that offer a potential solution for those engaged at the top end of multi-asset-class trading , risk and treasury – or are looking for real-time risk overlays on top of multiple , already existing platforms .
The first of these solutions is Front Arena . Front Arena is a robust and scalable platform that handles all asset classes – it is widely used by banks , asset managers , hedge funds , etc . – and yet already has a significant number of those customers utilizing it for any type of commodities as well . With trading and treasury coverage , the solution was initially used by banks for equities , FX , IR and more . It incorporates an order management system that connects to over 30 exchanges , which differentiates it from other similar platforms . On the commodities side , not only is it a proven solution for precious metals trading but it also supports a wide range of other commodities , such as power , natural gas and LNG , crude and refined products , coal and biomass , emissions and certificates , and gas and softs . It is a multi-unit of measure , supports multiple types of price curve , volatilities , many instrument types , and has a robust risk engine .
Many large merchant / traders , banks and industrials already utilize it . Indeed , one large bank switched to Front Arena from a legacy system to better support commodities , including some trading with physical delivery . Front Arena has front to back office functionality and includes functions like trading , position and risk management , P & L , settlements , confirmations and accounting . Front Arena is a solution that multi asset managers can switch to in order to reduce both the total number of solutions they use across trading and treasury and the total cost of ownership .
FIS also offers Adaptiv – a real-time risk platform . Adaptiv supports market risk , counterparty credit risk and comes complete with superb analytics . The analytics side includes the ability to do front-office pricing cost of trades ( XVA ), CVA capital requirements , and supports various IFRS regulations – for example , IFRS31 accounting regulations and others . Its market risk engine is an aggregation solution and supports the advanced risk models that larger multi-asset-class traders need to perform to make better decisions . On the credit side , it helps manage counterparty credit risk ( CCR ) for internal risk management and helps to reduce capital by using advanced capital models .
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