Energy sector
Green trade and risk management system
A green trade and risk management (GTRM) system is a SaaS platform purpose-built for managing the trading, operations, and risk of environmental commodities such as energy attribute certificates.
What does a GTRM system do?
A GTRM system handles the full lifecycle of environmental commodities, including capture of trade data, integration with global registries, real-time position management, allocation of certificates to obligations, automated reconciliation, and settlement. Unlike a generic ETRM or CTRM, a GTRM is built around the operational reality that EAC value lives in the registry, not the contract.
Who uses a GTRM?
GTRMs are used by large integrated utilities, renewable energy producers, environmental commodity traders, and corporates with their own registry accounts. Within those organizations, the primary users are portfolio managers, traders, and operations (middle and back office) teams, with risk, IT, and sustainability functions as additional stakeholders.
How is a GTRM different from an ETRM or CTRM?
ETRMs handle the trading of energy commodities such as power and gas, and CTRMs cover a wider range of physical commodities including metals, agricultural products, softs, and energy. Both are built around the firm's internal tradebook as the primary system of record, with relatively standardized integrations to exchanges, clearinghouses, and market data providers.
On the other hand, a GTRM is purpose-built for the post-trade operations of environmental commodities such as EACs, where the source of truth lives outside the system, in external registries that the firm does not control.
Why did GTRM emerge as a new product category?
The EAC market grew faster than the systems available to manage it. Most utilities first managed EACs in spreadsheets or ETRMs alongside their other energy commodities. This was a challenge because most ETRMs were not built around external registries, and spreadsheets could not keep pace with the registry count, vintage rules, and obligation matching required. GTRM emerged as the category for software designed around the way EAC markets actually work today and what portfolio managers, traders, and operations teams need to manage EACs end-to-end. Explore why CerQlar is the leading GTRM here.
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