Energy Trading & Risk Management (ETRM)
One platform for deals, exposure, PnL, limits, hedging, and audit-ready reporting
Rayterton ETRM helps management control price and volume risk, enforce deal governance, improve PnL accuracy, and accelerate the settlement process. Suitable for crude, refined products, LNG, gas, power, and coal.
What the Board/CFO typically asks
ETRM is not just trading. It is risk control and governance for business decisions.
Why ETRM is needed
Many organizations still rely on Excel, email, and fragmented systems. As a result, positions and exposures are seen too late, limit breaches are not detected quickly, PnL is inconsistent, and audit trails are weak. ETRM closes those gaps with structured processes.
Deals cannot run unchecked
Approval workflows, limit checks, and auditable contract change controls.
Exposure is visible before it is too late
Position tracking and limit monitoring to protect margins and cash flow.
Consistent PnL and clean settlement
Connected from deals and pricing to delivery, invoicing, and reconciliations.
Core capabilities
Built for energy companies that need exposure controls, policy compliance, and audit-ready reporting.
Deal Capture + Contract Lifecycle
Fast deal entry, standardized contracts, and controlled changes to maintain strong governance.
- ✓Deal types: spot, term, supply agreements, tolling, optionality (optional)
- ✓Pricing: fixed, floating index, formulas, differentials, freight elements
- ✓Contract versioning: amendments, addenda, renegotiations
- ✓Approval workflows: trading, risk, finance, management
Position, Exposure and Limits Monitoring
Daily exposure visibility to prevent risks from growing unnoticed.
- ✓Positions: long/short by commodity, delivery month, and location
- ✓Exposure: price risk, volume risk, counterparty exposure (optional)
- ✓Limits: policy limits, trader limits, product limits, tenor limits
- !Breach alerts: notifications and exception approval workflows
PnL, Valuation and Performance Analytics
Clearer trading performance measurement: realized, unrealized, and attribution analysis.
- ✓Realized PnL: from invoices and settlements
- ✓Unrealized PnL: mark-to-market based on reference prices
- ✓Attribution: price vs volume vs timing (optional)
- ✓Dashboards: margin by trader, book, and commodity
Settlement, Invoicing and Reconciliation
Accelerate settlements and reduce disputes with organized documents, calculations, and tracking.
- ✓Invoice generation: pricing, freight, demurrage (optional), adjustments
- ✓Delivery confirmations: scheduling, nominations, actualizations
- ✓Dispute workflows: claims, supporting documents, resolutions
- ✓Reconciliation: trading vs operations vs finance
ETRM Modules (Enterprise-ready)
Modules can be enabled based on organizational maturity, from basic trading ops to full risk governance.
Commodity, Market and Pricing Master
Master data for commodities, locations, grades/specs, curves/indexes, unit conversions, and pricing rules.
- ✓Index mapping + differentials
- ✓UOM conversions + density/temperature (optional)
- ✓Pricing templates by contract
Deal Capture and Trade Blotter
Fast trade entry, real-time trade blotters, and controlled trade amendments.
- ✓Trade lifecycle: draft, approved, executed, settled
- ✓Approval matrix workflows
- ✓Change audit trails
Scheduling and Nomination
Delivery schedules, nominations, and actualizations connected to settlement and inventory.
- ✓Delivery schedules by contract
- ✓Nomination workflows
- ✓Actualizations and variances
Risk Limits and Controls
Policy limits, alerts, and exception workflows to ensure risk governance runs properly.
- ✓Limits by commodity, tenor, and trader/book
- !Automatic breach detection + escalation
- ✓Risk committee packs (optional)
Mark-to-Market and Valuation
Position valuation based on market prices, including curve handling and daily snapshots.
- ✓Price source management (manual/import)
- ✓Daily MTM snapshots
- ✓Unrealized PnL reporting
Hedging and Derivatives (Optional)
For organizations that hedge: linking hedges to physicals, monitoring, and effectiveness reporting (optional).
- ✓Hedge mapping to underlying positions
- ✓Hedge position monitoring
- ✓Hedge reporting packs
Settlement, Invoicing and Claims
Automated invoicing and claims to reduce disputes and accelerate cash collections.
- ✓Invoice calculation rules
- ✓Claims and dispute workflows
- ✓Settlement status dashboards
Counterparty and Credit Risk (Optional)
For companies needing counterparty exposure, limits, and monitoring of credit terms.
- ✓Counterparty limits + breach alerts
- ✓Credit terms monitoring
- ✓Aging and outstanding tracking (optional)
Executive Dashboard and BI
Director-level summaries: positions, risk, PnL, top exposures, and action items.
- ✓Position heatmaps
- ✓PnL trends
- ✓Limit breach logs + approvals
Example "wow" screens for management and risk committees
Placeholders ready for screenshots/mockups: focused on positions, PnL, limit breaches, and settlements.
Risk and Position Cockpit
Net positions by commodity and delivery month, with highlights for limit breaches and actions.
PnL Dashboard
Realized vs unrealized by trader/book, with a breakdown of key change drivers.
Trade Blotter + Approval Trail
Deal lists, statuses, contract changes, and complete approvals for audits and governance.
Settlement and Dispute Tracker
Invoice statuses, disputes, claim resolutions, and cash collection visibility.
Integration and governance
ETRM typically integrates with ERP, market price data, and operational systems (scheduling/inventory) to ensure solid PnL and exposure numbers.
ERP / Finance Integration
Invoices, settlements, AR/AP (optional), and journals for financial reconciliation.
Market Price Feeds
Manual/imported reference prices for MTM, curves, and pricing indexes.
Audit Trail + Segregation of Duties
Role separation: trader, risk, finance. Every change is fully logged.
A phased implementation that is safe for the organization
Typically starts with deal capture and blotters, then positions and limits, followed by settlements and PnL.
Phase 1: Deal Capture + Governance
Standard trade entry, approvals, and contract structures to establish an audit trail from day one.
- ✓Commodity and pricing masters
- ✓Trade blotters + workflows
- ✓Basic management reporting
Phase 2: Risk, PnL, Settlement
Positions, limits, MTM, settlements, and dispute tracking for end-to-end control.
- ✓Position and limit monitoring
- ✓MTM snapshots + PnL
- ✓Invoicing and settlement workflows
Want an ETRM demo based on your organization's scenarios?
We can prepare a demo: trade capture, approvals, positions and limits, MTM, PnL, and settlement and dispute tracking. It can be tailored by commodity and internal limit policies.