CLRS offers automated risk analytics (ARA) software which gathers position and account information from several Futures Commission Merchants (FCMs). Our clients can then choose from modular solutions to build a package that suits their unique needs and interests. Some of those modules are summarized below.
Reporting
The reporting feature organizes the information gathered from multiple FCMs and deploys it through various, customizable reports to better understand customers’ futures and option positions in real time. These reports can be used by lenders to reduce information lag and improve efficiency for periodic reviews as well as centralize relevant information into a consistent, bank-wide format. Further, these reports allow for intra-month review and analysis rather than waiting for month end reporting.
Analytics
Our analytics module uses position and account information to run stress tests that provide insight about future liquidity needs for customers. Extreme market volatility appears to be the new normal in most commodity markets. Additionally, borrowers continue to embrace more complex structured risk management tools. The analytic tools allow lenders to overlay multiple stress models to more accurately assess the potential liquidity needs of their borrowers. Doing this allows the lender to proactively monitor liquidity drain and expedite credit line extensions as needed.
Physical Modeling
The physical modeling feature allows users to pair the reports and analytics engine with physical exposures. Including real assets next to a borrower’s hedges provides a more complete examination when modeling and understanding a customer’s future liquidity needs. It further gives the lender more context to the operational profitability under various price scenarios.
Stakeholder Portal
This module creates an entry point for external stakeholders to access information and resources that our clients choose to make available. Lenders can offer this to their borrowers or syndicate partners to improve communication and maintain synchronization.