As deregulation of the México energy market continues, Mexican businesses with significant energy commodity exposure must implement proven trading and risk management practices that will enable them to meet challenges and succeed in the new market. Recently, our client, one of the largest energy companies in Mexico, launched an evaluation of technology capabilities that could support the company’s business strategy. Our client needed a commodity trading and risk management (CTRM) platform that could provide real-time, centralized reporting on energy positions, insight into the various elements of risk exposure, and visibility into profit and loss.
In search of how best to get started, the client partnered with Essentia to assist in the configuration and deployment of the CTRM capabilities. Essentia brings extensive experience in designing, deploying, and implementing business processes and technology solutions to support trading and risk management for commodities in México. For our client, selecting Essentia for the implementation and support of Allegro’s platform was a natural decision.
After careful evaluation of multiple CTRM solutions, Allegro’s platform was ultimately selected because of the software’s comprehensive capabilities, proven past performance, easy adaptability to the Mexican Energy Market, and its support for all energy commodities in the client’s business – natural gas, LNG, refined fuels, and coal.
Essentia Advisors worked jointly with our client to execute a successful go-live of Allegro’s cloud-compatible commodity trading and risk management (CTRM) software, Allegro Horizon.
Following an initial six-month deployment of the Allegro natural gas capabilities, the client’s liquefied natural gas (LNG) portfolio was recently added to the platform. Now, as market prices, currencies, and other conditions change, the Allegro platform automatically provides the client with updated insight in real time throughout the trading day. With the natural gas and LNG business now managed inside Allegro, additional functionality is now being configured such that our client’s coal, diesel and other petroleum fuel trading activities are added into the customer’s position reports. The comprehensive insight which will result from having all energy commodities in the platform will ensure that the client is optimally equipped to succeed in the new market.
Also underway is the configuration and deployment of advanced market simulation capabilities, which will show the impacts of potential future currency exchange rates and commodity price changes. This “stress testing” of the business against these future risk factors will provide powerful intelligence of potential risks to the business as well as future profitable opportunities.
To ensure continuous business operations in the event of a major disaster, the Essentia and Allegro team configured the solution to feature sophisticated, cloud-based high availability capabilities. The Allegro deployment features real-time replication of trading data across two geographically separate and redundant platforms. This ensures that the market leader’s mission-critical operations in the Allegro platform for natural gas, LNG, and other fuels trading in Mexico are never interrupted and always continuously available.