One of Canada’s largest oil producers completed a multi-million-dollar global CTRM implementation to manage both physical trades and its expanding derivatives business. With users onboarded worldwide, the client was operating on a single, centralized system.
Global oil giant stabilizes CTRM capabilities using BroadPeak
Case study
Snapshot
- A slow down in operations after a multi-million dollar Commodity Trading Risk Management (CTRM) solution implementation.
- Post implementation of the CTRM solution, batch calculations took 6x longer
- In 10 weeks, BroadPeak’s platform was fully integrated, cutting trade counts by 80% during data ingestion, expediting processing times.
Background
The Challenge
Shortly after launching the CTRM solution, the company’s trading volumes increased, and data was fed into the clients new CTRM solution. The client was increasingly concerned about not realizing value from its significant investment.
- System performance degraded significantly: batch calculations that initially took 1 hour now required 6 hours, slowing business operations.
- A remediation project was initiated, but data feeds tightly coupled to the CTRM limited available options.
Hardware upgrades and database fine-tuning were attempted, with little success.
In parallel, the client’s compliance team faced a deadline to establish trade reporting to market regulators. While managing its performance improvement initiative, the clients explored external technology solutions to pull data out of its CTRM and reformat trades for regulatory submission.
The Solution
The client explored solutions for regulatory reporting and BroadPeak emerged as the preferred solution, offering plug-and-play capabilities for trade data transformation and transmission. BroadPeak subsequently developed and executed a plan to address the client’s challenges.
- BroadPeak could resolve the client’s performance issues with a single configuration, compressing data records on ingest to prevent downstream systems from being overloaded.
- For urgent compliance requirements, BroadPeak’s integration platform could act as a plug-and-play solution to extract, transform, and submit trade data to regulators.
- BroadPeak could further benefit the client’s compliance and risk teams by automating position limits management for derivative markets.
The client formed a cross-functional project team, including IT, risk, compliance, and operations, with support from BroadPeak experts to implement the solution across its workflows. The full integration was completed in just 10 weeks, covering all aspects of trade data, from ingestion to analysis to outbound reporting.
On launch, the internal team was able to take full control of running BroadPeak’s solutions. This mitigated the need for a long training process. BroadPeak delivered immediate value, maximizing the client’s investment.
The Results
Regarding ingest, BroadPeak’s buffered the client’s internal system, and compressed trade counts by 80%. This allowed the client to end its performance improvements efforts and realize immediate value from its CTRM.
- Regulatory Regulatory reporting deadlines were consistently met. The client’s operations team was able to keep things running smoothly as new trade types needed to be reported or new data elements were required by regulators.
- For analytics, the client’s risk and compliance teams gained actionable dashboards to monitor position limits. With a single click they were able to drill-down into positions and coordinate with traders on how to manage activity as they approached applicable limits.
With a stronger focus on trade surveillance, the compliance team has now licensed direct market order feeds via BroadPeak. These feeds consolidate all derivative trading activity into a structured dataset, forming the foundation of the client’s internal surveillance program. Teams can now build custom compliance tools and analyze data to address client-specific regulatory and operational requirements.
Client experience
“We first implemented BroadPeak to replace our existing CTRM API connections with the ICE and CME exchanges. The implementation process took only a few weeks, and we saw an immediate and dramatic improvement in the quality of our trade data within the CTRM. BroadPeak gave us far greater flexibility to improve the quality of our trade data before it landed in our CTRM. BroadPeak is intuitive and easy to use, hence we now have internal SMEs that manage the mapping and logic conversions with very little need for ongoing BroadPeak support.
We also implemented BroadPeak to automate our trade reporting for Dodd-Frank purposes, then expanded into the Position Limits solution, and finally, we recently added routes to capture our order data for trade surveillance. This has helped us visualize order patterns and meet requirements under the European Market Abuse Regulation.”