Six stages from pre-trade analysis through capture, confirmation, nomination, invoicing, and reporting. Click a stage to explore.
A simple example — buying 10,000 bbl of crude — followed from capture to reporting.
A trader buys 10,000 barrels of crude from a counterparty. Below is how that single deal moves through each stage of the ETRM life cycle.
Volume and price forecasts and portfolio optimisation indicate a need to buy crude; the trader decides on volume (10,000 bbl) and target price/period.
The deal is entered into the ETRM: counterparty, commodity (crude), quantity (10,000 bbl), price, delivery period, and terms. Enrichment adds book and profit centre; validation checks credit and limits.
A confirmation is sent (e.g. via ICE Link or email); the counterparty affirms. The deal is then “marketed” — allocated to physical delivery or specific contracts for scheduling.
Nominations are sent to the pipeline or terminal for the 10,000 bbl; scheduling defines when and where the volume is delivered. Logistics and inventory are updated.
An invoice is generated from the confirmed deal and delivery data; the counterparty is invoiced (or we receive their invoice). Statements are reconciled and payment is made or received; data is sent to accounting/GL.
The trade appears in exposure, P&L, and risk reports. Realized P&L is booked after settlement; position and credit reports reflect the deal. Management and regulatory reports use this data.