RiskTech Forum

Aspect: 5 Key Reasons Commodity Traders Need CTRM Software To Stay Competitive

Posted: 1 October 2017  |  Author: Mimi Narikot  |  Source: Aspect Enterprise Solutions


CTRM systems offer a variety of tools that assist traders during the trade cycle, from moving product to invoicing. Traders across commodities rely on commodity trade risk management software for trade analysis, reports, deal capture, and much more. CTRM software protects your business from exposure and assists in optimizing front, middle and back office efficiencies.

1. More Effective Than Spreadsheets

If your trading firm is still relying on spreadsheets to keep track of operations, it’s time to upgrade to a CTRM system. ctrm software-796508-edited.pngAlthough you may be used to keeping track of trades in Excel or a similar program, you’re falling behind the thousands of traders that now use modern systems to manage deals. Spreadsheets can get messy fast – there are usually multiple versions of each document, and typing errors often make your data inaccurate. In fact, spreadsheet mishaps have been known to cost businesses millions of dollars. A report shows that roughly 88% of spreadsheet documents contain errors. CTRM software significantly reduces the risk of human error impacting your trading operations while also offering analytics and reporting that spreadsheets don’t offer.

2. Manage Risk in Volatile Markets

When you use a CTRM system, it’s easier to address potential risks associated with price, volume, volatility, quality, logistics, credit and currency. You’re able to access tools that help you make smart, informed decisions. With AspectCTRM’s Risk Management Module, traders can thoroughly evaluate market risks before making deals. Companies can set up “what if” simulations that make them better prepared for volatile markets. Your CTRM software should also provide credit risk monitoring that includes real-time risk exposure reports. Another way CTRM systems reduce risk is through straight through processing, which you can learn more about in our recent blog post.

3. The Right CTRM Software Provides A Real-Time View Of Your Trading Portfolio

Companies rely on real-time data to make informed decisions. Trading with access to only outdated positions can lead to missed profits. In order to manage risk in real-time, P&L and positions need to update immediately after trades are entered, but most CTRM systems do not offer this feature. AspectCTRM is the only solution available that continuously monitors profit and loss at the point of entry of each trade captured and also offers real-time market data. AspectDSC, a decision support platform, integrates with AspectCTRM to deliver live prices and industry news on mobile, tablet and desktop devices. Charts and price tables continuously update, so you have the most up to date view of your trades, risk, and the market at all times.

4. Empower Your Operations Staff With Physical Operations Tools

Distributing products is complex. When supply chains aren’t properly managed, firms can easily miss opportunities to improve margins. Accurate physical data including movements and inventory is essential to running a profitable trading business. Margins are many times won and lost in the movement of product. CTRM software provides tools to track and optimize transportation activities. With AspectCTRM, you have access to a Shipments Workbench feature, which lets users plan, schedule and actualize movements within seconds. AspectCTRM also offers an Inventory Workbench, which allows users to keep track of movements as they travel between storage locations. CTRM systems assist in real time inventory control and analysis of historical inventory flows to better forecast future requirements.

5. Improve Margins In Today’s Competitive Trading Market

Trading margins are thin and businesses must do all that they can to maximize profits. CTRM systems are designed to assist traders in minimizing risk, which can significantly increase a firm’s earnings. In today’s competitive trading market, why risk operating without a CTRM system? The Cloud has made CTRM software affordable for companies of all sizes, leveling the playing field and removing the high cost of entry that traditional software requires. You no longer need capital to buy hardware and invest in IT teams for system maintenance.