POSTED BY Lee Berry | POSTED IN Blog, CTRM

Plug-and-Play Connectivity Between Trading Exchanges and ETRM Systems for Near-Real-Time Trade Capture

ETRM systems

Are you manually capturing exchange-based trades into your energy trading and risk management (ETRM) system? This can be costly and time consuming, and can lead to errors resulting in undesirable consequences to downstream position reporting and valuation.

Are you interested in automatically capturing trades from your trading exchanges directly into your ETRM system? Out of the box, several ETRM systems provide connectors to Trayport and the Intercontinental Exchange (ICE). However, there are many other trading exchanges, for a whole range of commodities, with application programming interfaces (APIs) that connect with ETRM systems to enable automated trade capture.

There are many software consultancies that provide connectors to the APIs for trading exchanges such as the Chicago Mercantile Exchange (CME), ICE, Trayport, and European Power Exchange (EPEX SPOT SE). However, few implementation partners of ETRM system vendors have experience in developing a custom connector that integrates these trades automatically into the ETRM system’s executed trade view while providing customizable logic that handles business validation, mapping, de-duplificacation, updates, and recall scenarios.

What sets capSpire apart is that we have already built and implemented custom, production-ready connectors to both EPEX and N2EX for several European clients, with other trading exchanges on the horizon and scheduled for delivery in 2018.

Our connectors provide critical capabilities that:

  • Seamlessly integrate with your risk-management system and trading platforms to enable near-real-time, automated capture of energy trades in your ETRM system
  • Detect duplicate trades, trade updates, and cancellations using integrated logic
  • Handle custom mapping requirements and enable trade reprocessing when validation fails
  • Provide customizable and automated proactive message alerting to back-office and first-line support teams for any processing issues that arise

Furthermore, capSpire understands energy markets, risk management, and the importance of ensuring that middle- and back-office systems support both front-office activities and the demands of accurate position and regulatory reporting.

Why do you need the capSpire EPEX connector?

EPEX has a strong commitment to facilitating the European market on power trading. In 2017, its 285 members traded 535 terawatt hours (TWh), representing one-third of the domestic consumption in the eight countries it covers.

In January 2018, EPEX and the clearing house European Commodity Clearing reduced delivery lead time from 30 minutes to 5 minutes for Austrian and French contracts, and from 60 minutes to 30 minutes for Swiss contracts. With capSpire’s near-real-time connector, this means that you can risk-manage those trades much closer to real time, which gives you a more accurate reflection of your current positions in the market.

Let capSpire help you extend your ETRM system to better connect with an increasingly larger player in European power trading, as well as other trading exchanges, and maximize the value returned from your ETRM system. For more information, please contact us at info@capspire.com.

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About capSpire

capSpire, a global consulting and solutions company with a focus on energy and commodities, provides the unique combination of industry knowledge and business expertise required to deliver impactful business strategies and solutions. Trusted by some of the world’s leading companies, capSpire’s team of industry experts and senior advisors enables clients to effectively streamline business processes and attain maximum value from their supporting IT infrastructure. For more information, please visit www.capspire.com.