VaR,P&L attribution and sensitivity analysis to provide clear picture of positions and exposure needed.
Toyota Tsusho Metals, wholly owned by Toyota Tsusho Corporation of Nagoya, Japan, and engaged in futures and options trading in the non-ferrous metals market, has selected Brady as its risk management and hedging service.
According to Brady, Toyota Tsusho Metals (TTM) selected the company for its risk management because of its sophisticated risk modeling for commodities. This includes Value at Risk (VaR) functionality within the application which is being used to meet the increasingly demanding regulatory requirements and the needs of the business, added Brady.
In addition to the VaR, TTM is also taking Brady’s profit and loss (P&L) attribution functionality. This module is expected to break down daily P&L to identify the source – between new business, amendments, deletions/cancellations, trade management actions and changes in market data. This analysis along with VaR and sensitivity analysis is expected to provide a clear picture of the positions and exposure needed to manage the business effectively, said Brady.
Lester Doman, head of risk and compliance at TTM, said: The Brady VaR engine provides the risk analytics required by TTM to operate in today’s global markets. Brady has an in-depth knowledge of the commodity products and their integrated trading and risk solution ensures integrity of the information flow between the trading and management functions.
Gavin Lavelle, CEO of Brady, said: We see a growing demand for advanced risk management in the metals and commodities industries. Winning Toyota is great news for us. Having so many of the world’s leading commodity trading institutions as clients makes us very aware of the requirements in these markets and puts us in a strong position to deliver the best technology both now and in the future.