White Papers The Importance of Real-Time Forward Curves | Page 2

INTRODUCTION
The ability to manage and utilize accurate forward price curves has always been an important
aspect of commodity trading and risk management -- indeed, it is at the very heart of price risk
management. Despite this, the collection of price time series data and the creation, validation
and maintenance of curves, has also always proven to be somewhat problematic – particularly
in illiquid, thin and/or real-time markets.
In the last several years, as market oversight by regu-
lators, stakeholders and financiers increased in scope
and intensity, forward curve development and use has
become even more critical to those trading and/or man-
aging commodity portfolios, particularly as profitable
trading opportunities become more difficult to find. Cou-
pled with a dramatic increase in the quantity and veloc-
ity of price and related data, the use of new tools and
solutions is required to ensure accuracy, completeness,
consistency and auditability.
This paper examines these issues in depth and analyzes
potential solutions that will aid traders, analysts and risk
managers in addressing their needs for real-time and
easy-to-use price curve tools.
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