E.ON Sales & Trading deploys Financial Objects' energycredit software

E.ON Sales & Trading benefits from comprehensive exposure management with energycredit to better mitigate counterparty, commodity and industry/geographical sector risk

The implementation of this credit risk management software will enable E.ON Sales & Trading to better control its exposure in an increasingly dynamic and complex counterparty landscape.

Moving forward in bilateral margining agreements and increasing trading activities E.ON Sales & Trading decided to improve its collateral margining processes and monitor all events in the trading lifecycle within a single workflow solution. After assessing the market offerings, the selection of energycredit was a logical one, given its proven track record in major energy corporations on both sides of the Atlantic, its match to E.ON Sales & Trading's priority requirements, and the solid reputation of Financial Objects as a global software supplier.

energycredit is now being used by E.ON Sales & Trading's credit management team to support power, coal and carbon dioxide certificate trading operations throughout continental Europe. The core modules of energycredit have enabled E.ON Sales & Trading to effectively measure, monitor and report on its credit risk profile, and while the credit management team now has a much more sophisticated tool to manage collateral margin calls, the provision of watch lists to the trading teams has aided trade or no-trade decision making.

"energycredit has enabled us to replace several legacy systems with a single workflow solution for the entire credit risk management process," says Martina Neuer, credit risk manager at E.ON Sales & Trading. "We are particularly pleased with the comprehensive exposure reporting and collateral management functionality within the system, which will generate efficiency gains throughout our organisation."

As part of an ongoing project, E.ON Sales & Trading plans to upgrade later this year to energycredit 2.0 the new web portal version of the system which was announced to the market at the IECA (International Energy Credit Association) European conference in June 2007. E.ON Sales & Trading also plans to deploy the energycredit Analytics module for the systematic measurement of potential future exposure (PFE) once the upgrade to energycredit 2.0 has been successfully completed.

"Our software will empower E.ON Sales & Trading to make faster and more scientific decisions - our goal is not simply to streamline processes but ultimately to give our clients a potential competitive edge," said Roland Jones, managing director for the Energy division at Financial Objects. "We will continue to work closely with E.ON Sales & Trading to help further improve credit risk management processes and energycredit 2.0 will provide them with improved real-time exposures through a web portal. The Analytics module will enable the timely and accurate modelling of PFE, which is crucial in today's volatile market."