US-based Fifth Third Bank has installed SunGard's Kiodex Risk Workbench product to support its commodity trading business.
Kiodex is a Web-based commodities risk management system that integrates deal capture, valuation models, risk measurement and financial reporting, as well as independent market data that includes representative prices, volatilities and volatility skews across the spectrum of commodities markets.
The bank is using Kiodex Risk Workbench as a front-to-back office platform. In the front office, the bank uses Kiodex's combined models, data and system to provide indicative quotes for customers and then capture and track the position on both customer and dealer trades.
Fifth Third also uses Kiodex's standard reporting functionality, including trade auditing to track changes made to trades and profit and loss attribution to help decompose and measure profitability. To monitor credit risk, the bank runs Kiodex's limit reports as well as Monte Carlo VaR reports providing potential future exposure by customer.
Mark Gargano, head of commodity trading at Fifth Third Bank, says the product was implemented and launched within three weeks.
"The model, the data, and the reports all just worked, allowing us to focus on launching our business and building our processes," he adds.
SunGard is also reporting that Lehman Brothers has renewed a contract for the Kiodex system. The investment bank uses the technology for valuation of commodities derivatives.