SunGard’s Kiodex Chosen by Lloyds TSB Corporate Markets to Support Commodity Derivatives for Client Business
SunGard today announced that Lloyds TSB Corporate Markets will use SunGard’s Kiodex to support its growing commodity business for its clients. Lloyds TSB Corporate Markets provides trading and risk services for precious metals, London Metals Exchange (LME) base metals, crude oil and refined petroleum markets. Kiodex is a Web-based commodities risk management solution that integrates deal capture, valuation models, risk measurement, financial reporting, and independent market data.
Kiodex will be used by Lloyds TSB to support 20 instrument types and 1,400 distinct commodities. Kiodex also provides the ability to demonstrate the profit and loss and risk impacts of not entering into transactions to hedge commodity price risk. Lloyds TSB finds this functionality to be an essential, value-added tool that it will use in conjunction with other software tools to provide its clients with a full suite of hedge effectiveness testing for fair value and cash flow hedges, across asset classes, on all of its client solutions. Adding these services is part of the bank’s strategy to expand client solutions and assist clients in implementing linear and option-based hedging strategies.
Tamlyn Nall, managing director, Financial Markets Structuring at Lloyds TSB Corporate Markets, said, “While Kiodex is a proven global solution for commodity trading, we are the first UK-listed bank to use it for our client business. This will help us to offer the quickest pricing and most accurate commodity valuation and risk service to our clients. It will also help us to broaden the spectrum of derivatives transactions available to our clients, assisting them in hedging more effectively and in increasing their financial efficiency and stability.”
Ben Jackson, chief operating officer of SunGard’s Kiodex business unit, said, “Lloyds TSB Corporate Markets is an early adopter of a new way to use Kiodex, in which the solution is provided as a turnkey offering by our customers to their clients. Corporate clients of Lloyds can gain the benefits of Kiodex’s commodity analytics, data and reporting directly through the relationship they have with their bank.”