EnergyCredit - Collateral Management Software

With the ever increasing volatility in the energy markets, effective collateral management is essential in helping to manage and contain credit risk.

Knowing your counterparty exposures and how much of that exposure is collateralised enables you to call for additional collateral in a timely manner when exposures increase. Understanding the status of call memoranda helps track down unsettled collateral in a managed workflow environment that streamlines the whole collateral function. Instead of manual and time consuming reconciliation between counterparties' deal valuations, energycredit Collateral provides automatic trade reconciliation where thresholds can be placed onto any deal field. This highlights any differences that may cause disagreement on the size or even direction of the collateral call. energycredit Collateral also re-computes collateral requirements based on rating changes from the external rating agencies as they happen.

Credit support annex

All the key contractual margining terms are captured and utilised for the exposure and margin call calculations. Users can capture the valuation and notification times, the eligible collateral, the core exposure calculation, thresholds, minimum transfer amounts, rounding and independent amounts. All calculations can be fixed, driven by a rating matrix or guarantee.

Automated margin call process

energycredit completely automates the margin call process for both demands on counterparties and expected demands from counterparties. This is workflow driven to automate the daily calls and maange the lifecycle of a particular call from authorisation, notification, counterparty acceptance and settlement. The margin call document is automatically created in either PDF or Excel format and can be auto-faxed or emailed. unsettled and settled collateral are computed and maintained and back-office payment notifications can be seamlessly fed into the system if required.

Disputes and reconciliation

An advanced tool is included for handling the dispute process. Upload counterparty trade valuations in spreadsheet format and compare and reconcile in the system at specific tolerance levels. Split the difference and averaging can be employed.

Capturing collateral

energycredit allows for a variety of collateral types to be captured. Cash movements in different currencies can be entered, as well as different types of letters of credit (LCs). These could be standby letters of credit, or documentary letters of credit, both fixed and fluctuating. LCs can be tied to specific margin calls, for general trading or as security for specific trades for hedging purposes. Parental guarantees can also be used, specifically for aggregation of exposure, or to act as a contractual margin threshold. Finally other types of pre-payments and initial margin can be entered and utilised.

Interest calls

Cash collateral is managed via cash movements. energycredit can track these balances and calculate interest on held and pledged prositions on a nightly basis, based on specific interest rate indexes. Automated interest calls can be created on a scheduled basis.

Liquidity analysis

Advanced analysis can be performed on current collateral positioning using the liquidity analysis tool. Users can specify a particular stress scenario or downgrade situations to discover what a particular margin call might be.

Collateral management

Key benefits

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