CTRM / CM as an Architecture A ComTechAdvisory Whitepaper acceptable degrees of latency , depending on role . For example , near real-time position reporting , or PnL , may be required at different levels and by subject to different criteria ; while the need to perform stress testing or run complex statistical simulations such as Monte Carlo VaR or similar will occur less regularly on an intraday basis or potentially overnight .
/ Different views on profitability to avoid circumstances where traders are paid a bonus on a profit that evaporates once all commercial activities are transcribed to the company ’ s books .
There are many other examples of these types of problems and many potential solutions have been devised to address them ; however , we ’ ve not yet seen any single solution that adequately addresses the breadth of complexities that are found in what is known broadly as the CTRM or CM market .
Throughout , the twenty-year history of the software category , the perceived “ Holy Grail ” has often been to bring to develop a singular comprehensive solution - one that covers all ( or at least the most common ) commodities , geographies , supply chains , and assets . Unfortunately , experience has proven such a solution to be more or less impossible to commercially achieve and support - and yet , there is still a lingering sense in some corners of the market that this remains the ultimate goal . Though many lessons have undoubtedly been learned as some vendors ( and a few market participants who invested in bespoke solutions ) tried to build the singular solution that could address any prospect ’ s needs , ComTech now believes that the “ Holy Grail ” - a singular , monolithic Commodity Management / CTRM solution that addresses all commodities and markets – is almost certainly impossible to commercially achieve and , frankly , is ultimately less than desirable . Rather , the most reasonable approach is an architectural approach – one that combines specific modules or individual products that can address the specific needs of an individual company and the market or markets in which they operate . It is our thesis that CTRM / Commodity Management is , and should be , an architecture first and foremost - one in which specific technologies and solutions are deployed to solve the litany of complex problems faced by today ’ s market participants .
EVOLVING NEEDS
ComTech analysts have followed the development of ETRM / CTRM / CM software over the last two decades and observed that a single software solution servicing multiple commodity classes is simply not the way to go , even if that solution is marketed as “ highly configurable ”. Instead , we feel that the problem needs to be dissected in a different way and looked at architecturally .
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