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Energy trading solutions

Luxoft’s growing commodities trading and risk management consultancy practice advises clients on optimizing their ETRM / CTRM platforms. Luxoft combines functional and technical expertise from software selection to run-operate support, through platform upgrades to identify opportunities for performance optimization.

 

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  4. Energy and commodity trading

 

Comprehensive energy trading solutions

 

Luxoft provides front-to-back technology support for commodities, including metals, energy, freight and renewables. We identify opportunities to optimize performance, from software selection to run-operate support and platform upgrades. Our experts help design, implement and optimize commodity trading and risk management processes, empowering supply, trading and marketing operations. Partnering with leading market solutions, Luxoft creates business-driven energy trading solutions to automate processes to improve operational efficiency.

 

 

 

 

ETRM/CTRM solutions for a changing industry

 

Increasing power demand and climate targets are forcing rapid changes in the energy market, creating opportunities and challenges for participants, particularly legacy trading platforms. An innovative energy trading solution is crucial for managing weather-driven generation, short-term trading, complex PPAs and ESG market data integration. Luxoft offers expert ETRM consulting and modern systems to help clients overcome legacy limitations, improve risk management and enhance operational efficiency for renewables trading.

 

Data processing

  • Huge volumes of data demand, new data processing and management strategies
  • Data can drive business opportunities in a new one

Real-time execution

  • Market and trade data acquisition; Real-time risk management
  • Need to understand positions minute-by-minute

Risk management

  • Need to understand exposure across multiple moving parts
  • New types of risk, ranging from weather conditions to managing risk of a VPP

STP and automation

  • Ability to manage the pricing, booking and processing of thousands of trades
  • Automate middle and back-office processes, both with better integration and API design as well as newer RPA processes

 

Drive critical processes with Luxoft solutions

 

Luxoft empowers commodity traders using CTRM platforms with a pool of experienced talent. Through a suite of services, traders can delegate tasks, accelerate upgrades and automate workflows, focusing on continuous innovation. The fully cloud-hosted, managed service ensures control remains with the traders, allowing them to set the roadmap, scope and priority of energy trading solution changes as business product owners. The service is founded on Agile principles, prioritizing flexibility and adapting quickly to changing market conditions.

 

Demand-driven response at speed and scale

 

Transparent scope, priority management, automated testing and cutting-edge methodologies support demand-driven delivery and rapid scalability. Trading Systems as-a-Service allows traders to stay up-to-date with the latest versions, providing the ability to respond swiftly to market forces and scale rapidly. Evergreening ensures the service covers applications, operating systems, databases and cloud infrastructure, ensuring a dynamic and efficient energy trading solution.

Expertise and extended delivery

With a solid track record of delivering major software applications in financial services, we enable delegation of tasks, user support, upgrades, new implementations, and automation. Our proven tri-party collaboration ensures alignment with clients and partners, while continuously innovating to enhance services.

TOM and Advisory

  • Target state analysis and roadmap planning
  • Technical proof of concepts
  • Buy versus build analysis
  • RFI/RFP preparation
  • Vendor selection

Planning and organization

  • Program and project management
  • Planning and PMO
  • Tailored engagement models
  • Flexible risk sharing models

Full execution skills

  • Greenfield implementations
  • Frequent upgrades
  • Major functional extensions
  • Regular run and change
  • Agile delivery model

Business skills

  • Deep energy, financial market and product coverage across physical and financial trading
  • Front-to-back-to-risk coverage

Transition to MS and as-a-service

  • Support team sizing/Skills modelling tools
  • Embedment strategies
  • Managed services models
  • Cloud-based as-a-service models

Optimize costs and flexibility without the overhead

Luxoft hosts and manages Application as-a-Service on the client’s behalf. The client can retain a direct software-vendor relationship with a simplified structure or consolidate it into a single contractual framework.

Retain the benefits of Application as-a-Service without the overhead

 

Industry accelerators 

 

Services and capabilities

 

Luxoft services and trading and risk management capabilities

 

News and insights

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Energy and commodity trading

Luxoft can help you trade energy certificates (carbon, energy savings, renewable) including financial, physical and options on the products.

 

FAQ

An energy trading and risk management (ETRM) system is a piece of software that powers energy trading, risk management, and back office operations for energy industry players. It can be used by power utilities and producers, energy commodity traders like oil traders and federal power administrations.

A good ETRM system allows its users to:

  • Make well-informed buy/sell decisions based on real-time and predictive analytics that deliver market insights
  • Keep the portfolio within the defined limits and control risk exposure
  • Seamlessly coordinate with energy transport service providers thanks to smooth integrations
  • Focus on strategic activity by automating portfolio management workflows and enabling straight-through processing
  • Facilitate data exchange across trade floor, operations, credit, contract and accounting functions via a user-friendly interface
  • Mitigate the risk of bias and human error negatively impacting trading decisions
  • Track the whole deal life cycle
  • Maintain and streamline regulatory compliance

Here are the five ways an energy trading solution can improve operational efficiency and profitability:

  • Straight-through processing. A solution can automatically process a transaction without manual intervention, from capture to settlement
  • Multi-commodity support. A system can support a variety of commodities, from gas and power to refined products and derivatives, in multiple currencies, all within a single customizable interface
  • Data exchange. With the help of API-powered integrations, data can flow smoothly and securely within the company. Third-party integrations, in turn, allow for accurate real-time trend analysis and projections
  • Monitoring and reporting. A software solution can automatically pull data from multiple sources, organize and visualize it in customizable dashboards, and generate reports based on templates
  • Risk management. Comprehensive data aggregation and powerful risk analytics improve risk control, limiting exposure and protecting the portfolio

Technology solutions can enhance carbon trading in the five following ways:

  • Data management and analytics. AI-powered solutions can derive actionable insights from swaths of market, emission and transaction data. At the same time, a software solution can organize and track data on project details, emissions and carbon credit
  • Regulatory compliance. A software solution can streamline reporting by automatically collecting and organizing emission statistics and other compliance data
  • Carbon trade. Technology powers trading platforms that connect buyers and sellers in compliance markets like the European Emissions Trading System (EETS) and voluntary markets
  • Monitoring. Software solutions can continuously collect measurement data on emitted greenhouse emissions and analyze trends in their reduction
  • Fraud prevention. Smart contracts can make carbon credit transactions more secure, preventing fraud and double-counting while powering full operational transparency and accountability