Trade and risk management for energy and power companies across the supply chain
Natural gas has evolved into a global supply industry with disparate markets increasingly linked by liquefied natural gas (LNG). Companies that produce, distribute and trade natural gas are faced with challenges such as the need to expand their value chain due to thinner operating margins.
Companies with crude oil, refined products & NGL’s operations face continuing volatility in both price and demand, and there is an imperative to improve timeliness in decision making to manage supply operations in near real-time.
The prices of coal forwards are difficult to predict and subject to rapid and significant change. This combined with the fact that coal quality is increasingly variable which affects price, is driving many buyers to lock in quality through physical trades.
While firms that generate and trade power are faced with a highly challenging environment including market liberalization and the increased use of renewables.
For all companies, the management of credit and the prevention of unauthorized trading activities are very much on the agenda. On top of this, new and existing regulations are adding costs and complexity in areas such as stress testing, compliance reporting and accounting for hedges.
OpenLink provides complete trade and risk management solutions for energy and power companies in all areas of the supply chain.
With OpenLink you get one integrated solution from trade capture, valuation, compliance and limits monitoring to scheduling, logistics and inventory management right through to risk management, settlement, accounting and treasury management.
As a result, trade processes are streamlined and the business gets more timely and accurate information for decision making.
Our solution covers the full range of physical commodities including oil, gas, metals, coal, power, emissions and agriculture as well as financial contracts. We can do this because we have a flexible model structure that supports virtually any type of transaction and contract from simple physical spot to structured delivery through to complex derivatives.
With our real-time reporting tools, you can see your aggregated positions, risk and P&L across multiple commodities and financial instruments and then drill down to investigate areas of concern to the transaction level, at the click of a mouse.
Our solution captures deals that impact position or inventory including storage, cargos and in-transit to provide accurate balance, statement reporting and inventory valuations.
This improved supply chain visibility and the ability to analyze current and projected inventory balances provides the information needed to optimize inventory levels.
With OpenLink you can manage purchases against a budgeted requirement and seamlessly coordinate with schedulers managing transportation.
Our solution manages the flow of scheduling and inventory information from nomination through movement for all major transportation methods. And you can see and track product flows over time.
So you can coordinate complex buying and logistical activities, reducing operational disruption and associated costs.
With OpenLink you can model multiple generating units (e.g. hydro, thermal, wind) and fuels sources (e.g. gas, coal, oil) together in a single run; importantly our model also takes storage capabilities into account. This is possible because our optimization engine supports a broad range of optimization approaches and comes with an extensive library of components, allowing you to analyze different types of plant and fuel sources in one, integrated model.
Furthermore, the solution supports route optimization that takes into account congestion on the supply network – enabling you to factor transmission constraints into your models.
As a result, you can fully take advantage of any interplay opportunities between different fuels, and you can properly take into account geographical location of plants versus transmission losses when optimising generating mix.
We are committed to staying at the forefront of regulatory reforms by working closely with regulators, clearing houses, service providers and trade data repositories to address regulatory challenges for our customers.
The OpenLink solution provides extensive stress testing functionality enabling you to model complex scenarios with a wide range of input factors. Our simulation engine provides a powerful and consistent application of risk factor shocks regardless of market. Risk can be attributed to hypothetical movements of any magnitude including rates, FX, commodities and inflation.
Using OpenLink you get a better understanding of liquidity, credit and market risks under a wider range of circumstances.
The OpenLink enterprise credit solution extracts the relevant underlying data from multiple trading systems at lowest level of granularity. The data is then held in an in-memory cube, which means you can query data and create reports or views in seconds.
This means you can start from a consolidated global view by counterparty and then drill all the way down to the individual trade legs if required. You have confidence that the data will be correct, and you no longer rely on spreadsheets and the people who understand them to produce the views and reports you need.
Our treasury management solution allows you to create a standard format for divisions and subsidiaries around the world to report their cash forecasts. With more configurability and flexibility you can set it up to work the way your business is structured, and to view and analyse the data however you want to.
So you can increase productivity, get more control and visibility across the organization and improve compliance. Finally, faster and more accurate reporting enables you to make decisions more quickly.
With OpenLink you can visually map business process workflows via point and click configuration and access any data (e.g. reference, trade/deals, accounting) captured by the system for that workflow. Once created business processes can be executed consistently and monitored in real-time for compliance.
The solution can check for compliance breaches in pre-process and post-process services. If there is a breach, an alert will be sent and/or the operation will be blocked. Once a pre-processing alert occurs, a separate workflow can be initiated to address the situation.
As a result you can improve productivity, minimize errors and enforce polices.
Our solution uses an in-memory database for fast storage and retrieval of massive amounts of data. This ensures the OpenLink solution scales as transaction volumes grow and is able to deliver aggregated real-time position reporting for the largest trading operation.
With an enterprise-wide view of P&L available in real-time you can take swift action as market conditions change.
The OpenLink platform has been designed from the ground up to be open and extensible with APIs and client development environments enabling you to fully integrate in-house or 3rd party pricing models.
This eliminates the need to manually import and export data between 3rd party models and the trading platform; reducing manual effort and eliminating errors.
Solutions for Energy
- Producer Services
- Midstream Management
- Crude Oil, Refined Products & NGL’s Supply Management
- Biofuels Production & Trading
- Rack Marketing
- Coal Supply Management & Trading
- Gas Supply, Distribution & Trading including LNG
- Power Generation, Transmission & Distribution
- Optimization & Planning
- Market Modeling
- Enterprise Risk
- Treasury Management
Who uses OpenLink?
- Exploration & Production Companies
- Ore Operators & Producers
- Biofuel Manufacturers
- 1st Purchasers & Traders
- Refining Marketing Companies
- Marketers / Traders
- Fuel Marketers & Jobbers
- Gas Utilities, Regional Suppliers & Distributors
- Power Generators
- Power Utilities, Regional Suppliers and Municipalities
- Energy Trading Companies