What is ETRM?

ETRM stands for Energy Trade and Risk Management. CTRM stands for Commodity Trading and Risk Management. The names are used for a range of software solutions which support the trading and risk management of commodities.

ETRM for physical and financial trading

screenshots2Commodity prices are often rather volatile and constitute a large portion of the total costs of production. Comprehensive ETRM and CTRM solutions support both physical and financial trading, and can deal with a wide variety of commodities, not only energy: power, natural gas, soft commodities (agri), metals, crude oil and oil derivatives, plastics, and more.

The solutions provide a transparent view of complex portfolios, and are used by energy producers, energy suppliers, large energy consumers and other companies with significant commodity price exposures. The systems aid both front office (traders), middle office and risk management, and back office.

From front-office to back-office

ETRM solutions ideally provide front-to-back support. This includes:

  1. deal capturing and price management
  2. logistics and scheduling
  3. position management
  4. risk reporting (VaR, EaR)
  5. valuation and optimization
  6. accounting, settlement, regulatory reporting

Each system has its own strengths and weaknesses, and each focusing on particular commodities, functional areas or user groups.


Does your company have a significant exposure to commodity prices? Then KYOS has a cost-effective solution for your daily management. The KYOS application has been primarily designed for industrial companies with diverse commodity exposures and contracts across different business units and site locations.

Many industrial companies struggle to get a complete overview of the commodity price exposures, and this is where the KYOS application proofs to be very useful. It helps financial officers, purchasers and treasury managers to avoid unexpected losses due to commodity price movements, by providing a detailed insight in exposures, expected cash-flows, Mark-to-Market and more. It is a web based application which can easily interface with other systems and data providers. Click here to read more.

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