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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