Fendahl | Fusion ETRM For Oil & Refined Products | Matthew White

Designed with the requirements of Oil trading businesses in mind, Fusion provides greater levels of automation and task management than ever before, allowing for the digitisation of previously manual business processes. Fusion manages; Trade Entry, Pricing, Contract Management, Market Data Integration, Electronic Exchange Integration, Enterprise Risk, Logistics, Bulk Handling, Blending, Processing, Decision Support, Automated Task Management, forecasting, and Reporting. The solution supports the functional trading and risk management requirements of oil trading businesses, refineries, and processors.

The Fusion solution is an analytics-driven, end-to-end commodity management platform that addresses the specific requirements of oil and refined products traders. An efficient ETRM system must allow trades to be entered with a minimum of effort but still capture all the required detail. Fusion supports the full range of physical trades (i.e. index, complex formula, trigger, etc.) and Financial trades (i.e.futures, swaps, OTC options, listed options, basis swaps, etc.) that oil traders require.

Fusion provides traders with powerful position reporting allowing tracking of daily and dated MTM PnL. Daily priced-in and pricedout position helps trader to hedge their position correctly. Fusion also delivers advanced PnL reporting capabilities that can reports daily physical delivered and undelivered PnL. Fusion also tracks Index and Forward curve based financial priced-in and priced-out exposure, such as; exposure based on Platts, Argus, Brent, HSFO, NYMEX, etc. Oil trading businesses need to manage complex logistics movements of physical stock. Operations teams need to manage the complexity but also do it efficiently.

Fusion’s visual physical operation module provides management of physical movements by; vessel, barge/lighter, rail car, or pipeline. Operators can efficiently manage vessel itineraries and manage BL date tracking, NOR and other shipping documents all within a single screen. The solution provides comprehensive storage management capabilities such as; storage valuation reporting, stock forecasting, and refinery run down planning, etc.

Fusion also supports the specialist requirements of RACK traders. The Fusion settlements module delivers a powerful invoicing and payments management solution. If customers want to manage invoices and payments from third party systems Fusion’s modern architecture simplifies the task of integration with systems such as; SAP, Oracle eBusiness Suite, JDE, PeopleSoft, etc. Fusion provides a comprehensive risk management solution that also includes advanced features, such as; PnL attribution, credit risk and limits management, VaR, stress testing, flexible risk reporting, and “what if” scenario simulations.

Fusion delivers powerful, invoice, payments, cashflow and credit management tools that can be seamlessly integrated to third party ERP systems. Fusion’s modern architecture simplifies the task of integration. Fusion has several configurable pre-built adapters to many popular ERP/Accounting systems (such as SAP, Oracle, MS Navision, JDE, PeopleSoft, Sage etc.). Fusion is the only CTRM solution that offers a pre-built SAP certified integration adapter. Fusion offers sophisticated cost management. Fusion’s cost matrix allows for rule based allocation of costs that minimises user intervention and gives clarity on those costs that will be incurred when the trade is first executed allowing for realistic cash and PNL management. It also enables “What-if” comparisons of PnL, for example on different; routes, transport options or supply chains.

Fusion CTRM provides extensive credit risk management tools and a powerful market risk engine. Fusion’s risk engine is capable of providing “out of the box”; complete pre-deal and post-deal PnL , PnL Attribution, Mark to Market, and Price Exposure for trade types ranging from simple derivatives to the most complex formula based physical trades. Fusion couples this trade risk logic to a streamlined visual scheduling which allows operations to plan their load and discharge activity and budget costs. This provides greater accuracy in PnL reporting and understanding what is affecting any PnL changes. Fusion’s Value at Risk engine supports; Monte Carlo, Parametric, and Historical methodologies. Fusion offers a comprehensive credit management solution.

Fusion’s Credit Solution has the ability to handle; credit limits, tracking, monitoring, and the enforcement of credit exception handling. Fusion uses a powerful workflow automation to manage credit management exceptions. Limits can be applied against; invoice value, quantity, mark to market or any variation. Credit limits can be time bound using relative dates to allow for the effective setting and monitoring of the most complex credit policy. Fusion also offers a powerful stress management and scenario testing solution. Fusion’s Stress Testing Module allows for the stressing of portfolios based on historical events or hypothetical scenarios. Users can select indexes and the desired shock factors for each curve individually. The computation engine supports; adder, multiplier, and factor based models. These prices are then used to determine the stress effects on; PnL, MTM, and cash for the underlying dataset selected by the user.