SunGard today announced that Man Financial, the brokerage division of London-based Man Group, plc, has selected SunGard's Kiodex Risk Workbench to help facilitate its entry into the OTC energy derivatives markets.
Kiodex Risk Workbench will provide Man with increased automation, independence and transparency, helping Man to create a more streamlined and auditable energy pricing and risk management operation. Kiodex Risk Workbench is a Web-based commodities risk management solution that integrates deal capture, proprietary valuation models, risk reports, and independent market data that includes representative prices, volatilities and volatility skews for the crude oil, refined petroleum products, power, metals and natural gas markets.
Man Financial uses SunGard's GMI solution for back-office clearing and accounting of its global exchange-traded derivatives, equity and equity options. In order to enter into the OTC energy market, Man selected Kiodex for its ability to price these commodities and to provide risk management reporting and independent valuations. Man will use Kiodex Risk Workbench for pricing, position keeping and risk management of its energy business, and for independent valuations and indicative pricing.
SunGard's Kiodex ASP-based delivery platform was particularly appealing to Man Financial, which has developed a significant electronic presence using automated, Web-based order entry, routing and risk technologies. In addition to helping provide rapid time-to-market, as a Web-based solution Kiodex provides convenience, security with resilient disaster recovery and cost-efficiencies through the reduction of ongoing maintenance and support costs.
Martin Timmins, global head of energy trading at Man Financial, said, "From a front-office perspective, we selected the ASP- based Kiodex Risk Workbench for its ability to provide indicative quotes on 200 plus commodities, which is an important customer service tool to hedgers and speculators in these OTC markets."
Raj Mahajan, president of SunGard's Kiodex business unit, said, "Kiodex will provide Man with commodity analytics and a pre-configured platform, helping it to create a streamlined, risk-controlled operation. Because Kiodex is delivered on an ASP basis, it will be quickly implemented, helping Man to meet its target start date."