Customer Testimonial: How ACES Gained Greater Power Trade Flexibility With Allegro
And 3 Tools Energy Management Companies Can Use to Tackle the Power Market’s Diverse Challenges
The energy management company ACES provides a broad suite of services to energy industry participants. In the below video testimonial, the ACES Director of Portfolio Valuation discusses how ACES has used Allegro to transact more than 800,000 trades on its clients’ behalf. Watch the video below to learn more.
3 Proven Strategies for Power Trade Flexibility
Power cooperatives are diverse in their needs. From geography, population, infrastructure, grid facilities, to varying settlement times — countless variables for a power co-op must be managed.
As Scott Martello discusses in the video above, when ACES utilized Allegro’s advanced analytics for its 21 member nationwide co-op, it yielded big results. Since going live with the first version of Allegro in 2005, ACES transacted over 800,000 trades on their client’s behalf and processed over 500 forward price curves and 2,700 forward trades daily.
Here are the three tools Allegro’s advanced analytics offers for power trade flexibility to organizations like ACES:
1. Predictive and Prescriptive Portfolio Modeling
Portfolio pricing is largely about risk, and there’s plenty to go around. Today, CFOs and CROs are worried about portfolio-level risk, value at risk, and earnings at risk, and they’re trying to get a grip on projections. These C-suite professionals want to know their financial exposure.
With advanced analytics, organizations drive predictive and prescriptive modeling of financial and physical portfolios with radical efficiency. Prescriptive analytics models are used by all major business processes, and objectives and key results are mapped to the best decision support possible. Using advanced analytics, organizations identify opportunities for trading profits, hedging and limiting risk, and creating innovative options for new initiatives.
2. Advanced Exposure/Position and Simulation
With advanced analytics, organizations get the best decision support for their basic commodity option valuation, exotic financial option valuation, and embedded physical option disaggregation and valuation. Optionality is embedded in physical transactions and logistics are modeled as exotic options, with highly specialized models for each type of optionality. Prescriptive analytics are applied to non-linear positions to forecast change in option valuation over time.
3. Trade and Deal Optimization
With advanced analytics, organizations will drive trader productivity and transaction decisions with radical efficiency. Complex physical and financial transaction structures will be evaluated pre-trade across multiple scenarios for supply/demand balance, net return, and risk metrics. Physical and financial transaction strategies will be generated to improve decision support on supply/demand balance, net return, and risk metrics across multiple scenarios.
Increase Your Company’s Flexibility and Remain Competitive
Are you looking to optimize your trades against today’s volatile markets? Allegro’s advanced commodity analytics drive results for front, middle, and back office professionals across power industries.
Watch ACES’ customer testimonial video to discover how Allegro transformed an energy management company’s trading operations.