SunGard Highlights Ten Key Trends Driving Risk and Data Initiatives in Energy & Utilities

Houston, TX, USA - 19 May 2011

Austin Morris, managing partner of SunGard Global Services’ energy practice, said, “In the energy and utilities industries, participants must contend with dramatic growth in volumes of information due to the growing number of instruments, exchanges and markets as well as the increasing granularity of data. They must also prepare their infrastructures for changes in stakeholder oversight and regulation at a time of great uncertainty. Energy traders, producers and utilities must be able to mitigate the risk and cost of business today, by focusing on managing information more efficiently, ensuring higher data accuracy and quality, and providing timely assessment of positions and risk.”

Ten trends driving trading, risk and data management initiatives in the energy and utilities industry are:

Trading

1. Energy companies need better access to liquidity in order to enhance margins and reduce risk

2. Global demand and major changes in energy markets are causing greater business challenges in terms of growth, investment and recruitment

3. Increasing cost and competition require better transparency, efficiency and information management

4. The need to control costs and optimize capital is driving operational efficiency as a top priority

Risk & regulation

5. Dodd-Frank, CFTC and other regulators globally are greatly impacting industry participants by increasing regulatory oversight and reporting requirements

6. New proposed capital reporting and clearing requirements also will affect a large number of participants by requiring modified trading behaviors

7. Price volatility and aging infrastructures are making risk management more challenging, driving increased reinvestment in technology

Data management

8. Growing complexities in the industry have caused an explosion of systems and data

9. The increased volumes and complexity of data is driving demand for smarter data mining to reduce cost and increase accuracy

10. Producers and utilities are seeking smarter technologies to increase efficiency, from the field to the CEO

Jill Feblowitz, vice president and practice director, IDC Energy Insights, said, “Energy players are faced with unprecedented challenges, including a slow economic recovery, flat energy prices, and mixed messages on regulations. Information management, smart grid technologies and other business intelligence approaches will help participants improve their ability to manage change, reduce cost and risk, and enhance efficiencies in operations, delivery and service.”

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