Sucden Group Selects ICE to Support OTC Derivatives Pricing, Trading and Risk Management
- Sucden Group has selected ICE’s Portfolio Analytics platform to support pricing, trading, and risk management of derivatives products
- ICE Portfolio Analytics offers streaming market data and analytics, hosted solutions, and integration with other applications and tools
- Sucden’s front, middle, and back-office teams will have access to ICE Portfolio Analytics, allowing them to analyze holdings at both a single security and portfolio level, with data and analytics covering multiple asset classes
- None.
Insights
The adoption of ICE's Portfolio Analytics platform by Sucden signifies a strategic investment in advanced analytics capabilities, which is crucial for a firm operating in the dynamic derivatives market. The ability to analyze real-time pricing and manage risk with greater precision can lead to more informed trading decisions and potentially better hedging strategies. This decision support tool could enhance Sucden's competitive edge by leveraging streaming market data for intraday exposure monitoring.
From a financial perspective, the integration of ICE's analytics into Sucden's operations may result in cost efficiencies by consolidating analytical tools and streamlining workflows. This could translate into lower operational costs and improved margins over time. Additionally, the emphasis on real-time data and advanced analytics is in line with industry trends towards increased transparency and speed in trading activities, which could benefit Sucden in terms of market responsiveness and client trust.
ICE's partnership with Sucden reflects the growing demand for sophisticated analytical tools in the commodities trading sector. As firms like Sucden expand their trading activities globally, the need for comprehensive risk management solutions that encompass multiple asset classes becomes paramount. This collaboration could indicate a broader industry shift towards integrated platforms that offer both pricing and risk analytics, setting a new standard for trading infrastructure.
Furthermore, the use of such advanced platforms could influence the competitive landscape, compelling other market participants to adopt similar technologies to remain relevant. The ability to monitor and price complex vanilla and exotic OTC products intraday can provide a significant advantage in fast-paced markets, potentially influencing liquidity and volatility patterns. This could have implications for market dynamics and the strategic positioning of trading firms.
Integrating ICE Portfolio Analytics into Sucden's risk management framework underscores the importance of real-time data and analytics in managing derivatives portfolios. The platform's capabilities to support pricing and risk management tasks across various asset classes offer a holistic view of market exposure, which is vital for identifying and mitigating potential risks.
With the increasing complexity of financial instruments and market interconnectivity, the ability to price and monitor exposure on an intraday basis is not just a competitive advantage but a risk management necessity. This kind of technology enables firms to respond swiftly to market changes and adjust their risk profiles accordingly, potentially reducing the likelihood of significant losses due to market volatility or unforeseen events.
As Sucden continues to expand its global trading and investment activities, it will use ICE Portfolio Analytics to support its real-time pricing, trading and risk management of derivatives. ICE Portfolio Analytics offers streaming market data and analytics, which include access to pricing and analytics solutions for vanilla and exotic OTC products across asset classes, giving Sucden the ability to price and monitor their exposure on an intraday basis.
"We are on continuous watch to improve or complement our portfolio management platform. Although we already have different analytical tools and frameworks to support our portfolio of cross asset volatility and correlation positions, ICE’s excellence in analytics and data will further enrich our capabilities," said Greg Merran, Head of Portfolio Management and Chief Investment Officer at Sucden.
ICE Portfolio Analytics is a hosted solution, all of the computational processes are handled by ICE and the resulting data is delivered directly to the customer. ICE’s analytical data can integrate with other applications and tools, which provides significant efficiencies and simplifies workflows.
"We're delighted to be working with a leading and innovative company like Sucden, which deploys highly sophisticated trading and investment strategies," said Simon Evans, Head of Derivatives Pricing and Analytics at ICE Data Services. "Firms are always looking for new ways to meet evolving risk management needs. With our range of derivatives services, we are able to provide companies like Sucden with information and tools to help them generate ideas and build portfolios of listed & OTC derivatives products."
Sucden’s front, middle and back-office teams will have access to ICE Portfolio Analytics, allowing them to analyze holdings at both a single security and portfolio level, with data and analytics covering multiple asset classes. ICE’s platform will assist in pre-trade price discovery, decision support tools, risk management and analytics across a wide range of asset classes and instruments.
For more information about ICE Portfolio Analytics, please visit: https://www.ice.com/fixed-income-data-services/data-and-analytics/derivatives/analytics.
About Sucden
Sucden is an independent market leader in soft commodities that combines global know-how with local expertise to connect supply and demand in a sustainable way.
Sucden trade on the world’s major exchanges in a wide range of products and services including sugar, coffee, cocoa, ethanol, ocean freight and futures/options across asset classes. Sucden is also active in agriculture and sourcing, processing, logistics, distribution, merchandising, financing, research, risk management and venture investments.
Sucden’s team of 5,400 employees in over 25 locations worldwide originates and ships more than 10 million tonnes of soft commodities every year.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges – including the New York Stock Exchange – and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on February 2, 2023.
Category: Fixed Income and Data Services
SOURCE: Intercontinental Exchange
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240131174251/en/
ICE Media Contact:
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Source: Intercontinental Exchange
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