Counterparty Credit

Allegro for Counterparty Risk

The CTRM system for complete credit risk visibility and exposure analysis.

As the energy industry continues to undergo dramatic change, it's more important than ever to understand counterparty risk and exposure in what is a truly dynamic marketplace. Proper evaluation of exposure is vital to mitigating the risk to your company by identifying potential problems before they become actual problems.

With Allegro's commodity risk management software, credit analysts and risk managers will get a real-time view of their exposure, including counterparty exposure. That's because Allegro's software has powerful tools embedded that are specifically meant to manage counterparty risk. Our platform, based on more than three decades of experience, is ready to mitigate the risk you're facing today, as well as what you'll encounter tomorrow.

Risk managers have multiple demands and numerous challenges, and they can arise rapidly. Allegro, and its commodity risk management expertise, can prepare risk professionals to handle whatever comes their way.

WHY ALLEGRO   |   CUSTOMER VOICES   |   OUR MISSION


Trading & Risk Management Software: Buy or Build?

While you might be thinking about developing your own software for commodity management in-house,
you have to consider whether doing so makes the most sense. A report from Allegro, "Build vs. Buy,"
explains how a CTRM system may be the right decision instead.


Built for Counterparty Credit Management

Coping properly with risk involves everyone in the trading cycle. The front office has to stay within its trading limits, while middle and back offices manage invoices, collect and analyze counterparty credit information and oversee the overall risk landscape.

Allegro's commodity trading and risk management software addresses these requirements. Availability data for limits, configurable by contract, product and other parameters, provide traders with timely and accurate data to manage their book’s exposure, today as well as into the future.

Beyond its functionality, another advantage of Allegro is the flexibility of the system. Along with giving you the choice to deploy the system on-site or in the cloud, Allegro's CTRM technology can be extended as needed by your enterprise. That means teams throughout the organization will benefit.


The Benefits of Allegro

  • Counterparty Credit for Trading

    Counterparty Credit for Trading

    Counterparty Credit for Trading

    For traders, Allegro’s benefits for managing counterparty credit risk include:

    • Capability to check a trade for credit impact before execution
    • Ability to analyze trends to determine exposure by geography, product vertical or rating group
  • Counterparty Credit for Logistics and Operations

    Counterparty Credit for Logistics and Operations

    Counterparty Credit for Logistics and Operations

    For logistics and operations teams, Allegro’s benefits include:

    • Ability to calculate expected future exposure on delivery to ensure credit limits will not be breached in the future
    • Functionality for trades “subject to credit” and collateral assignable to particular trades, legs or movements
  • Counterparty Credit Risk Management

    Counterparty Credit Risk Management

    Counterparty Credit Risk Management

    With Allegro’s CTRM software, credit risk managers will see benefits including:

    • Forward analysis to show exposure, availability, predicted margin requirements and other metrics for any future day
    • Credit exposure and availability metrics that can be adopted to the way your business views credit risk
    • Quantity and exposure limits can be tracked by individual counterparty, counterparty family and at any level of that hierarchy
    • Limits by commodity or commodity group and also by customer-defined grouping.
    • Auditable results that ensure the ability to comply with regulatory guidelines
    • Margining workflow management and margin call tracking for OTC margining
    • Counterparty collateral management
  • Counterparty Credit for Accounting and Compliance

    Counterparty Credit for Accounting and Compliance

    Counterparty Credit for Accounting and Compliance

    On the compliance side, benefits of Allegro for managing counterparty exposure include:

    • Ability to interface with external rating agencies
    • Generation of auditable results
    • A customizable scoring model that can be leveraged to quickly determine a company’s creditworthiness