A commodity trading and risk management (CTRM) system is software designed to manage the trading, position-keeping, risk, and settlement of physical commodities including metals, agricultural products, energy, and softs.
A CTRM captures trades across the commodities the firm trades, maintains position and exposure views, calculates risk metrics, manages logistics and physical delivery, supports inventory and warehousing, and feeds settlement and accounting. The largest deployments run across hundreds of users in global trading organizations.
CTRMs are used by commodity trading houses (such as the major agricultural and metals traders), producer-marketers, processors, banks with commodity desks, and large industrial firms with significant raw material exposure. The systems are typically configured per commodity class and per market.
A CTRM covers a broader range of physical commodities (metals, agricultural products, softs, energy, and others), whereas an ETRM is the subset focused specifically on energy commodities (power, gas, oil, and related products). The underlying functional layers are similar, and many vendors sell both modes under one platform.
Most CTRMs do not natively manage EACs. Environmental commodities sit between the categories of physical commodities (where CTRMs operate) and financial instruments (where treasury and trading systems operate), and the registry-centric workflows they require are different enough that CTRMs typically need significant customization or replacement to support them well. Companies with serious EAC exposure usually run a GTRM alongside their CTRM rather than trying to extend the CTRM.
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