In addition to adding many OTC energy products to its real time system, the new release contains features to price commodity structures easily and quickly, as well as rich functionality for risk management. SD-CM now has a strategy function to allow users to devise various structures to create more effective hedges. New functionality also enables users to fully revalue retroactively all of their commodity option positions, perform extremely sophisticated âwhat ifâ analysis and carry out forward pricing to estimate the value of their portfolios at future dates. The retroactive feature was added at the request of many corporations and leading auditors, who generally need to revalue portfolios at the end of quarters. SuperDerivatives has also simultaneously added all of the new products introduced to SD-CM to its mark-to-market portal SD-MM, and its mark-to-market revaluation service SD-MM Reval.
âThere is an enormous enthusiasm for SD-CM. Commodity options are rapidly becoming more popular and SD-CM brings users more sophistication from other better developed markets, in both risk management tools and hedging techniques. It also delivers real-time accurate option pricing to what are often highly-skewed products. With the current high level of many commodity prices, it is significantly more efficient to hedge with options as the markets are still posed for sharp fluctuations. Therefore, there is a real need for SD-CM, as it helps many institutions enter the options market in the most efficient way,â says David Gershon, President and Chief Executive of SuperDerivatives.
âThe feedback we have received from our clients in the energy, metal and agricultural markets has been absolutely staggering. It seems they have had to wait too long for the type of tools we specialize in providing. Not only do they want to be able to price all energy and metals types of options accurately, but they want to be able to perform various types of testing. The appetite for transparency in the commodity option community is huge and SuperDerivatives is fully committed to providing it,â adds Gershon.
SuperDerivativesâ benchmark products are used by institutions from both the buy and sell side. Almost all the banks around the world that are active in options are clients of SuperDerivatives, as well as numerous corporations and hedge funds, auditors and central banks. In addition to its real time pricing and analytics systems, SuperDerivatives provides mark-to-market and revaluation services through its SD-MM portal.