How ZEMA Can Make Life Easier For Energy Traders
I work for the company that develops data management software solutions and I’m frequently asked what kind of companies use ZEMA, and how much time and money it saves them.
Although I won’t give you the exact dollar values, I will describe one of our most frequent user cases – energy traders.
Let’s take a multi-million dollar oil and gas company that has a large trading floor. Simply put, their main goal is to analyze the relevant data and make a decision on whether they need to buy or sell certain contracts. This process can become very complicated.
To successfully bid for contracts, traders must ensure they have quick and easy access to the right data. This data can be collected from a multitude of data sources, including both spot and future prices, and can represent values from various different commodities and regions.
Its crucial this data is validated so to ensure costly errors are avoided. It must also be formatted so it can fit into the trader’s pre-existing analytical models. This process is usually done manually by the traders themselves or through an internally-built, IT-managed process that automatically downloads the required data from the website onto spreadsheets. As well as being prone to errors, both options are extremely time-consuming for internal resources.
After the data is collected, it needs to be analyzed in a meaningful way. The analytical models for which this data is fed into are usually created and managed in hundreds of Microsoft Excel spreadsheets, usually supported by VBA code developed by someone else. The data is then fed into Energy and Commodity Trade Risk systems, following which the traders will base their decisions on the achieved results.
Now imagine how different this process would be if most of the steps, like collection, validation, standardization, and analysis were automated. This is exactly how ZEMA makes traders’ life easier. Besides automating most of the steps, it allows for greater control of scheduling and validation routines, and user entitlements. With the already vast library of data sources, the data universe is information that is literally at your fingertips.
ZEMA also offers the ability to perform complex analysis of that data, which can be easily integrated with other third-party systems. The collected data is automatically fed to Market Analyzer or Curve Manager, which allow to analyze and visualize data as well as create and manage forward curves. In turn, integration tools automatically feed the data to third-party systems, such as ETRM, CRM, ERP, SaS, BI, Matlab.
Here is a quick example of the type of graph Market Analyzer allows to build in under a minute: