Large Sugar Producer Turbo Charges CTRM System with Derivative App in Weeks on Eka’s Digital Commodity Management Platform

EKA > Large Sugar Producer Turbo Charges CTRM System with Derivative App in Weeks on Eka’s Digital Commodity Management Platform
Nov 08, 2018

Large Sugar Producer Turbo Charges CTRM System with Derivative App in Weeks on Eka’s Digital Commodity Management Platform

Background

As businesses grow and expand their operations across several geographies, getting one, consolidated view of risk portfolio becomes increasingly difficult.

 

The central risk management team of a large sugar producer based in Europe realized it was getting harder to get a consolidated view of the company’s risk portfolio because derivatives were being managed from nine different entities using nine different systems.

 

Business Challenge

In order to thrive in a fiercely competitive and turbulent world market, the company knew they needed to manage their risk differently. They needed to centralize their derivative operations so that they could get one, consolidated view of position to manage their risk better.

 

The sugar producer’s first instinct was to upgrade their two-year-old CTRM system by adding derivatives to it. Unfortunately, they quickly learned that their CTRM system was incapable of supporting derivatives, even with a custom build.

 

The company issued an RFP to find a solution that could manage derivatives and connect with their CTRM to manage physical commodities. While some vendors offered a derivatives solution that would meet their immediate needs, their business needed a more robust solution that could help them stay nimble and scale as their business evolved. Implementing a custom solution wouldn’t work because that would take over a year and they needed a solution they could implement quickly.

 

Business Solution

When the sugar producer met Eka’s team, they immediately realized that Eka’s modern app-based system was exactly what they needed. Eka’s Digital Commodity Platform offered them a suite of powerful apps that cut down traditional CTRM implantation times, allowing them to go live in just a few weeks.

 

“Eka’s Derivatives app provides end-to-end management of exchange traded and OTC derivative contracts within one system.”

 

With Eka the company could integrate their physical product with derivatives, boosting their ability to manage derivatives globally across multiple entities in several locations, and connects to their legacy CTRM system.

 

To meet their immediate needs, Eka delivered a suite of six apps: Derivatives, Position, Mark-to-market, Hedge Accounting, Physical Trades, and Risk & Monitoring. The apps were integrated with the company’s systems flawlessly, allowing them to go live in just eight weeks. The sugar producer chose Eka because its platform met their immediate and future needs – delivering the functionality they require today and what they will need tomorrow and beyond, which included managing their physical business.

 

Business Benefits

  • Plug-n-play apps: Eka’s Digital Commodity Management Platform allowed the sugar producer to choose just the functionality they needed without having to invest in a complete CTRM overhaul. The six apps were pre-configured as per the asset class and cost a fraction of what a traditional CTRM costs. They were easy to deploy, going live in just eight weeks.

 

  • In-built connectors: With Eka’s robust suite of in-built connectors, the company didn’t have to change anything in their existing system. The platform’s connectors linked data from virtually every part of the business. The company was able to leave the trading system where it was and build the entire derivative operations around it with ease.

 

  • Flex with the market: Armed with a modern, easy to use solution, the company can now confidently manage risk and respond to any market change with ease. The platform allows them to add as many apps as they need without the painful implementation process long associated with implementing a traditional CTRM system. The platform’s modularity also allows them to build their own apps with ease.

 

Four months post implementation, the company was managing and growing their business with a consolidated view of the company’s risk portfolio on Eka’s Derivative app.