White Papers Importance of Price Curve Management In A More Reg

The Importance of Price Curve Management In A More Regulated Commodity Trading Environment A ComTechAdvisory Whitepaper DATAGENIC A COMPREHENSIVE SOLUTION There is no substitute for a purpose-built application that addresses the specific requirements relating to forward curves, their construction, storage and integration with target systems. Having the correct agile data management platform in place allows the full complement of services to be harnessed during the curve build and management processes (for instance, validation, business process management, data and process dashboard, etc.). Additionally, the curve building application needs to be highly configurable to account for the many input parameters and rich metadata information that are used in the build process and curve management. Examples include the curve methodology, the source data sets and the fair value hierarchy. DataGenic is a leading provider of software and services in the commodity data management arena including that of forward curve management. It has spent a considerable amount of time and expertise in developing these tools in order to offer a comprehensive, flexible, transparent and auditable solution that can also integrate with the E/CTRM solution of your choice. DataGenic provides an agile data management structure, the associated processes and controls, the curve building application and framework to provide for the structured management of all curves and curve building methodologies while allowing flexibility to change and adapt the curve construction. Its solutions meet the criteria outlined above while offering many significant advantages and benefits over other solutions including: /S tandardized Logic – Rule formation is standardized providing the ability to ensure that standards are devised, used and defendable as opposed to writing applications with no standards or with no transparency into the standards used. /E ase of Use – The rules can be written in a ‘natural’ language such as English making it both easy to use and to understand and defend. /C entralized Knowledge Base – All the rules and libraries are server based so they are accessible and usable by anyone (they are also automatically kept up to date with the latest versions) in and outside of the enterprise. /T ransparency – The use of a rules-based system allows users to break problems down into distinct conditions making the logic used more precise, reliable and understandable to other people such as auditors, regulators and stakeholders. /M itigation of Key Person Dependency – The central- ized, automated and server based curve construction mitigates the risk of the over reliance on people-ba sed operations, which include concentrated knowledge, sickness, holidays, and attrition. /C ollaborative – Curve building logic does not need to be dealt with in isolation – many people across the enterprise can contribute to the library. DataGenic’s Genic CurveBuilder is a purpose-built application that fully utilizes artificial intelligence and helps to remove the complexity of building curves and allow unlimited flexibility while delivering full transparency. While many still utilize undocumented and uncontrolled spreadsheets or ‘black box’ programs that don’t allow visibility, Genic CurveBuilder provides the kind of a comprehensive solution needed to meet the demands of the current regulatory environment. The application supports an unlimited number of curves, curve histories, curve interdependencies and curve complexities (combined with curve versioning, curve testing and rollback). Curve generation is completely automated and fully logged, driven by an event (e.g. data update) or time scheduled. It also supports any asset class meaning it can handle the needs of the treasury department and any curve construction © Commodity Technology Advisory LLC, 2015, All Rights Reserved.

White Papers Importance of Price Curve Management In A More Reg | Page 5