The Importance of Real-Time Forward Curves A ComTechAdvisory Whitepaper
With massive increases in volumes of disparate data types being available to traders and risk managers , the ability to visualize data on the desktop in readily consumable ways is an increasingly critical aspect of price risk management . Incorporating rich graphical views and easily sortable data on the desktop has become a “ must have ” capability for traders and risk managers alike . This is particularly true in intraday trading where the growth in near real-time data and information can overwhelm a trader ’ s or risk manager ’ s ability to maintain an accurate view of the market and make fully informed decisions .
Finally , a coherent set of integrated tools to perform the data management and visualization of both endof-day and real-time forward prices and curves is a distinct advantage for personnel on the trading floor . Ensuring front , mid and back office staff are operating from a common set of curves ensures valuations and reports are created on the same basis with the same up to the minute prices , reducing reconciliations and accelerating decision making . The ability to mark prices faster based on intraday snapshots or achieve earlier end-of-day settles also provides competitive market advantage and allows more accurate risk management and trade decision making .
MARKET SOLUTIONS
CurveBuilder and MarketView by Drillinginfo
With the acquisition of GlobalView , a leading provider of analytics and data management including the Market- View visualization and analysis tool , and DataGenic , a leading provider of data management software , Drillinginfo is in the unique position of being able to combine rigorous data management with desktop and mobile consumable information . Arguably , it now offers the only complete enterprise data management system and decision analytics platform . In continuing to develop and add value to these products , it recently also announced the addition of real-time forward curve construction capabilities to MarketView . As a result , MarketView is a tool that meets most , if not all , of the requirements discussed above , including :
/ Comprehensive data management and price feed aggregation . Price data can be verified , modified , transformed and manipulated to produce any number of derived curves in an automated manner providing a full and complete audit trail in the process
/ Price and related data can be displayed and manipulated in a readily consumable visual manner allowing traders to identify trends and spot opportunities , and risk managers to manage risk in a more effective and timely manner
/ Both traders and risk managers ( as well as others in a trading entity – such as treasury , for example ) can utilize more accurate intraday , real-time prices and forward curves with the same level of automation , auditability and visual accuracy
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