JOINING AN EXCHANGE IN SEE? YOU HAVE SOME SOFTWARE TO DOS

Jan 12, 2016

With the approach of the First Energy Software Day SEE, some side events are happening which require attention and fit the theme of the conference. One such key event is the start of trading at the IBEX (the Independent Bulgarian Energy Exchange) on the 19th Jan. The early days will be a chance for participants to test out their readiness for this new trading environment. Exchange trading typically poses several interesting challenges for a company’s transaction lifecycle management:

  • Deal capture and STP. Ideally, straight through processing (STP) should happen within a well round IT solution. This means that from the click of the trader on a certain position bid or offered on an exchange screen or the closing of the deal in a different manner, the flow of the deal to the system of the trader, the consequential events of physical settlements, payments, and wherever applicable on an exchange – the margining and closeouts – should happen automatically. Why? Reason is simple: exchange trading follows strictly defined rules. And strictly defined rules are a situation where IT systems easily replace manual work. Do it well, and your life will be far easier.
  • Cash flow management. One of the main benefits of exchanges is the function of clearing which removes the credit risk between counterparts. This is related to strict rules about collaterals or other ways of warranting the meeting of delivery or settlement obligations, as well as strict rules for settling current obligations. For a company – especially in an environment where intercompany indebtedness is high – good cash flow management in an environment requiring quick cash settlements will be crucial for ensuring the viability of the business.

The reaction or the pro-action of companies in addressing these among other challenges will be a differentiating factor in a highly competitive industry like the electricity markets of SEE.

For more insight on this, among other key topics in the region, join us the First Energy Software Day SEE via http://seeenergysoftwareday.com

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