Typical commodity & energy trade operations are quite diverse. It includes the following:

• Deal confirmation process
  • Confirmations control
    • Transactions must be confirmed by the trader to his colleagues in the back office, as well as by the counterparty; once these match, the deal is firm.
• Matching of orders
• Billing, invoicing & messaging
• Cash transferring
  • Transfers because of amounts receivable or payable.
    • Due to payments of invoices and settlement processes.
  • Transfers because of cash collateral deposits and withdrawals.
    • Margining due to clearing.
• Settlement
  • Payments
  • Delivery
    • Contracts must be unwinded. This typically involves delivery versus payment. Settlement of agreements could involve obligations or the execution of rights.
• Events processing
  • All kinds of events can take place which lead to the desire or need to adjust positions and the related valuation.
• Nomination
  • Utilisation of transport capacity must be nominated to the operator, including the use of gas pipelines, power grids, oil tankers and vessels to ship coal, metals or soft commodities.
• Allocation & reconciliation.
• Accounting
  • Financial reporting;
  • Regulatory reporting;
  • Monitoring of hedge documentation;
  • Review of ongoing hedge effectiveness.