Modern energy trading presents many companies with numerous challenges. Among other things, increasing trading volumes and various, sometimes complex regulations mean that it is becoming increasingly important to use the right tools. This is exactly where Endur comes into play. The ETRM system helps its users to record their trading transactions securely while keeping an eye on all possible risks. With its help, it is also possible, for example, to automate processes from front to back office and thus save time. Despite the advantages offered by a modern ETRM system, this tool is not suitable for every company. Anyone who only needs to process a few simple processes may quickly find the whole thing “too big”.
What does Endur actually mean?
This is a special software solution designed for energy and commodities trading. It supports its users in handling various trading transactions throughout the entire process. It does not matter whether it is a matter of mapping the “front office”, “risk management” or “final settlement”, for example: The ETRM system helps with documentation and at the same time ensures that everything remains traceable.
It is particularly practical in this context that information on…:
- different markets
- Products from different categories
- Trading strategies
can be mapped in a single system.
Accordingly, users benefit, among other things, from…:
- a high degree of transparency
- a small number of manual processes
- the ability to measure risks and thus make a sound assessment.
In particular, companies that are confronted with complex processes and many requirements on a daily basis have found an option in Endur that helps them to simplify their everyday work.
The most important findings on Endur
The following list shows why so many companies are now opting for an Endur implementation.
- Endur covers important trading processes. The program documents all important data – from the recording of the transaction to risk management and the actual settlement. All data is stored centrally and can be retrieved with just a few clicks.
- It also provides all important information in real time. Users can view details about positions, risks and market movements and use them as a sound basis for decision-making.
- The ETRM system can be flexibly adapted to the company. Among other things, users can change countries, markets and trading volumes.
- The fact that Endur helps companies to automate processes means that employees have to do less manually. This reduces sources of error.
When is it worth betting on Endur?
In principle, the use of Endur is particularly worthwhile when a company’s trading activities increase in terms of their complexity, volume and applicable regulations.
The program can then help to map all transactions in a structured and orderly manner, organize processes and assess risks – both in national and international business.
And because the program is characterized by a high degree of flexibility, it is not a problem to let the system grow with the company and adapt it again and again.
These are the core areas at a glance
Endur is able to map the central areas of energy and commodity trading end-to-end and to present all aspects, from business transactions to accounting processing.
The following table shows exactly which details are relevant in the individual areas:
| Front Office | In the front office, Endur allows users to record all trading transactions and simultaneously integrate current market and price data. This allows companies to maintain an overview of the various positions and the market movements associated with them at all times. |
| Middle Office | The Middle Office is responsible for monitoring existing risks. Among other things, fluctuations in value are analyzed and key risk figures are calculated. The system also reports if a defined limit is exceeded. All this information can be used to make well-founded decisions. |
| Back Office | Endur supports users in the back office with regard to operational processing. This is where payments are prepared and invoices are initiated. |
Endur therefore also helps to facilitate collaboration between the various offices. The aim is to ensure reliable consistency throughout the entire trading process.
What does Endur do on a technological level?
The system is designed for complex requirements, but can be integrated into existing IT landscapes with a good team, for example when it comes to creating a connection to market data providers, ERP systems or reporting platforms.
Endur also enables comprehensive automation, which reduces the number of manual interventions by employees and at the same time increases process reliability.
And to ensure that nothing stands in the way of continuous further development of the system, updates can be installed.
Organizational changes: What will be different with Endur?
To ensure that the introduction of Endur runs as smoothly as possible, it is important to address different areas of the company and not focus exclusively on IT.
Rather, from an organizational point of view, close cooperation between IT and…:
- the respective department
- Compliance
- accounting
- Risk management
required. The aim should always be to make existing workflows even more transparent through clearly defined processes, roles and responsibilities.
If everything has been implemented correctly, the companies concerned will benefit from increased data quality and a uniform governance structure.
The qualification level: What expertise is required to use the system?
To be able to work with Endur, you need certain skills and basic knowledge. Among other things, this is important:
- Understand the fundamentals of trading and risk processes
- To be able to demonstrate basic knowledge in reporting
- have sufficient data competence.
In addition to this, it can be worthwhile to train so-called “key users” who can support the other team members as the first point of contact in day-to-day business. In this way, companies can ensure that the implemented system is used sensibly in both technical and operational terms.
In which sectors is Endur used particularly often?
Endur can be used in a variety of industries, but is particularly useful when companies are regularly confronted with complex trading processes and the need for comprehensive risk management.
The system is particularly often used by…:
- Energy suppliers and traders (electricity, gas, renewables, certificates)
- Companies from the industrial sector that wish to protect themselves against price risks, for example by means of various hedging strategies
- Service providers and trading houses that want to serve several markets
used. Due to its practical scalability, Endur is suitable for many different requirements and can be easily adapted to the characteristics of the above-mentioned industries.
Overview of important success factors for the implementation of Endur
Whether and to what extent the Endur implementation is successful and allows the desired goals to be pursued depends on various factors:
- Clear and measurable goals form the basis for all further steps. A typical goal that is easy to follow is the resolution: “I want to halve the time I need to complete my monthly accounts”.
- Equally important is the continuous maintenance of master data and a generally high level of data quality. Both create the basis for reliable results.
- Comprehensive and structured training ensures that all users (including key users) know what to do and what falls within their area of responsibility. This enables them to make full use of the possibilities offered by Endur.
- A step-by-step approach based on smaller pilot projects helps to reduce risks and gain experience in the various areas.
- The better the specialist departments and IT work together, the smoother the individual processes associated with the use of Endur will be in most cases.
A practical example: Endur project – objectives, approach, results
As part of an extensive project in the past, PTA supported an energy trading company in connection with the further development and support of an Endur system. Among other things, errors were rectified, tests carried out and adjustments made to scripts and interfaces. This included integrating SAP and reporting databases.
A particular focus was on ensuring operations, including support for end-of-day processes and support for the various specialist departments. This made it possible to increase the stability of the trading system and form the basis for a sustainable IT landscape.
Need help deciding? The next steps could look like this
Is your company’s trading volume increasing? Do you now operate in several markets? Are you affected by strict regulations?
If you answered “yes” to any of these questions, it’s worth taking a closer look at the benefits Endur offers you. Feel free to contact us so that we can clarify in an Endur assessment whether and which solutions are suitable for you!
Brief glossary: Overview of important terms
ETRM/CTRM
Modern software for energy and commodity trading and risk management.
Front Office
Captures transactions and uses price and market information.
Middle-Office
Checks and monitors risks.
Back-Office
Confirms processes, settles accounts and books trading transactions.
Scheduling/Nomination
Plans and reports energy deliveries.
Settlement/processing
Takes care of the correct payment and processing of invoices.
VaR (Value at Risk)
Important key figure for estimating potential losses.
EOD (End of Day)
Daily closing, which includes calculations and reports.
FAQ
Is Endur only suitable for large companies?
No. Whether Endur is suitable for a company does not depend on its size, but rather on the complexity of the processes associated with said company.
How long does the introduction take?
How long an Endur implementation takes depends on various factors. As a rule, step-by-step roll-outs according to different areas are common.
Do we need a lot of IT staff?
Introducing Endur in a company does not necessarily require a lot of staff. However, it is worth training key users and focusing on clear processes.
