SunGard today announced that Tellurian Capital Management (Tellurian) has selected SunGard's Kiodex for commodity trading, risk management and back-office operations.
Kiodex is a Web-based commodities solution that integrates deal pricing and capture, valuation models, risk measurement, financial reporting, and independent market data that includes representative prices, volatilities and volatility skews across the spectrum of commodity markets.
Kiodex Risk Workbench will help Tellurian to control and measure liquidity, market, operational and credit risk and to understand the sources of gains and losses, through profit and loss attribution reporting. Kiodex Risk Workbench will help Tellurian to handle the attributes of commodity markets, such as market data and models that deal with the asymmetrical aspects of commodities. SunGard's Kiodex business unit has worked with more than twenty alternative investments firms to provide independent valuations across commodity markets.
Jean-Marc Bonnefous, general partner of Tellurian, said, "We were impressed with the experience that SunGard has in the hedge fund space and in a broad array of commodity markets. Kiodex was able to quickly model our trades and provide reports, from credit risk by counterparty to Monte Carlo VaR, and the data to support these reports. We look forward to growing our business with SunGard Kiodex."
Dr. Richard Boesch, senior vice president of financial engineering and product development for SunGard's Kiodex business unit, added, "For Tellurian and many of our customers taking on commodity price risk, the monitoring of liquidity risk is central to the risk management process. Kiodex provides a suite of tools to support this process. With Kiodex's Monte Carlo Cash Flow at Risk (CFAR) report, Tellurian can monitor the expected cash flows of current and potential trades over a user-defined period of time. Tellurian also uses Kiodex's Monte Carlo VaR report to discern possible changes in market value by trader, asset class and instrument. Tellurian augments its VaR and CFaR reporting with Kiodex's stress testing tools. At SunGard, we are focused on provioviding commodity trading firms front-end trading and risk management tools, to help them build a picture of both their opportunities and their risks."