SunGard Trading and Risk Systems says New York-based MotherRock LP has bought SunGard’s Kiodex to support its commodities trading operation. MotherRock will use Kiodex for position keeping and risk management.
“Kiodex is the backbone of our risk management process,” says Bo Collins, founder of MotherRock and former president of NYMEX. “It provides best practice risk management and accounting tools adapted to the unique needs of the commodities markets, such as independent valuations on forward curves, integrated Value at Risk, full auditability and Sarbanes Oxley compliance. Its ability to operate seamlessly with our proprietary models is also very important, as our investors demand both balance and integration between in-house, proprietary trade management and risk systems and third party tools. We also like the excellent responsiveness of Kiodex’s customer support.”
John D’Agostino, chief operating officer of MotherRock, adds: “By using Kiodex we anticipate greatly increased efficiency around position keeping and P&L reconciliation, and improved risk management capability. The solution’s intuitive interface, flexibility to accept a wide range of trade types, and excellent integration with our proprietary models will help us to grow our business in size and complexity.”
Raj Mahajan, president of SunGard’s Kiodex operating unit, says fund managers that trade commodities face three primary challenges: time-to-market, raising capital and risk measurement. “Regulators and market participants are also driving the requirement for transparency and independence in valuations and price verification,” he adds. “Kiodex helps managers attract investment while complying with regulatory demands by providing Web-based, best practice accounting and risk management tools that help enable transparency and demonstrate control. Kiodex integrates complete deal capture, proprietary valuation models, transparent risk reports, and independent market data, and captures the unique dynamics of the commodity markets. As a Web-based solution, Kiodex helps commodities trading firms to improve operating efficiency with minimal upfront investment and maintenance costs.”