TTM is a significant player in the global metals market and an Associate Broker Clearing Member (Category 2) of the London Metal Exchange (LME), specialising in futures and options trading of non-ferrous metals on the exchange. TTM selected Brady for its risk management because of its sophisticated risk modelling 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.
Lester Doman, Head of Risk and Compliance at Toyota Tsusho Metals Limited, says âThe Brady VaR engine provides the risk analytics required by TTM to operate in todayâs 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.â
In addition to Bradyâs VaR solution TTM are also taking Bradyâs advanced P&L Attribution functionality. This module breaks 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 provides a clear picture of the positions and exposure needed to manage the business effectively.
Doman continues: âWith the growing trading volumes and volatility both on the LME and in OTC trading in recent years it became apparent that we needed a sophisticated risk management platform tailored to our needs. After a period of evaluation we decided that Brady would fulfil our requirements. Their understanding of the markets in which we operate gives us the assurance that we will get the required solution for TTM.â
Gavin Lavelle, CEO of Brady, comments: âWe 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 worldâs 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.â