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C. Statistics |
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CTRM
Setup Data
This page
contains a listing and description of each of the data elements required for a
typical CTRM implementation.
We have termed
this ‘setup data’ and note that you’ll sometimes see these items labeled
‘Static Data’ or ‘Reference Data’.
What
is Not Covered on this Page
What this does
not include is what we will call
‘Transactional Data’, which in this case means:
a) Trade Data
b) Market
Data. i.e.
prices/interest rates/FX rates/volatilities/corrections
c) Scheduling
Data. e.g.,
nominations for Natural gas.
List
of Setup Data Required for Trade Entry
This is Data
Commonly Required for a Financially Settling Commodity Swap. This could be fixed-float or float-float.
See: Commodity Swap
This is in no
particular order.
1) Internal Trading Desk
CTRM Systems
will sometimes call this ‘Internal Business Unit’ or ‘Company’ (internal is
implied) ‘Internal Party’ or various other names.
Some systems may
further split this into two parts, ‘Internal Business Unit’ and ‘Internal Legal
Entity’.
This is the
trading desk from the firm’s point of view doing the trade. E.g., you might have a Natural Gas desk, an
Oil Desk, a Natural Gas options-trading desk, etc.
This would be
selected on the trade or defaulted.
i.e., every trade would have on it the internal trading desk doing the
trade.
And what we
are talking about here in terms of Setup Data is setting up the list of these Internal
Trading Desks somewhere in the CTRM system as reference data. i.e., so that the relevant
items will be available on the Pick-List for trade entry.
2) Counterparty
CTRM Systems
will sometimes call this ‘External Business Unit’ various other names.
This is the
counterparty of the trade. For an OTC
(over the counter) trade, this would be the counterparty like ‘XYZ Corp.’.
We are
assuming here that we are talking about Financial-settling (i.e., cash
settling) commodity swaps. These can be
OTC or done on an Exchange like ICE. If
they are done on an exchange, they may have the Exchange as the
counterparty.
For the
purposes of this categorization of Setup Data, we’ll assume that by
Counterparty we mean any and all counterparties of a Trade, which can include
exchanges.
WORK IN PROGRESS:
Check back in a few days for more
Table of Items and their applicability by
Trade Type
|
# |
Item |
Commodity
Swap |
Commodity
Futures |
|
1 |
Internal
Trading Desk |
Yes |
Yes |
|
2 |
Counterparty |
Yes |
Yes |
Introduction to
CTRM
Click on this
link for a great introduction to CTRM software: Introduction to CTRM Software