Overview
When implementing CoreTRM some important setup is required.
It is always a good idea to start gathering Reference Data first in order to understand what type of static data the client is using.
In terms of Reference Data, some items that will require discussion with the client include:
- Booking Entities
- Books
- Commodities
- Security Model
- Approvals
When setting up Booking entities, the booking entity currency tax currency are required. In addition, knowing the number of booking entities that are going to be used will also open up the question of how to handle trades involving different entities.
Books are an important element since all trades are entered into a book. Typically, the book structure will be split by region or by trading desk. When setting up books the consultant will need to know how the middle office and trading management wish to view their Market-to-Market Profit & Loss and Exposure.
Commodities in CoreTRM are more than just commodities that are traded in a trade. It is important to know that commodities in CoreTRM drive trade entry automation. For example, commodities selection in contract item can default pricing items, fee and specifications in the trade automatically. In addition, commodities also drive the physical balance position pricing of the trade. All of this affects how the trade will be calculated in terms of Market-to-Market Profit and Loss. As a result, it is important to discuss this with the users so that the users understand the impact of commodities setup.
The Security model allows you to add new users. For the Security Model, the consultant will need to discuss with the client the different access that each user or group of users should have.
Trade Approvals are optional in CoreTRM. Discussions on the required Approval Rules will allow consultant to configure the approvals setup. CoreTRM provides both Single and Multi Level Approval.
In term of Price Data, the important price data setup that requires discussion with users are:
- Price Series
- Forward curves
Price Series are used to price a trade. And the Finance Team uses the settlement price from the trade entry price series to generate invoices. It is important to understand all the different price series that are required so that all trades will be priced correctly.
When setting up Price Series, it is also important to know for each of the Price Series, what will be the Forward Curve associated with it. This helps to value trades with the best possible assessment of MTM Profit and Loss.
In addition, there are a list of static Reference Data that are required from the client. They include:
| # | Data | Associated Data | Comments | Link |
|---|---|---|---|---|
| 1 | Settlement Basis | List of all Settlement Terms. E.g. BL+30, NOR+10, etc. This is used for due date calculation | Settlement Basis | |
| 2 | Calendar | List of Calendars. This is used for Pricing, Due Date and LC due Date calculations | Calenders | |
| 3 | Calendar | Holiday | List of all Holidays for each calendar. | Holidays |
| 4 | Companies and Counterparties | List of Counterparty Names | Counterparties | |
| 5 | Companies and Counterparties | Counterparty addresses | List of all Counterparty Addresses. This can be used for Invoice Printing | Counterparty Address |
| 6 | Containers | List of all containers (Vessel, Barge, Truck, Storage and Pipeline) | Containers | |
| 7 | Credit Terms | List of all Credit Terms. E.g. Documentary LC, Standby LC | Credit Terms | |
| 8 | Events | List of all Events. E.g. BL, NOR, Completion of Loading, Date of Nomination | Events | |
| 9 | Fee Types | List of all Ancillary and Secondary cost. E.g. Demurrage, Insurance. | Fee Types | |
| 10 | GT & C | List of all General Term and Conditions | GT and C | |
| 11 | Incoterms | List of all Incoterms. E.g. FOB, DES, CFR, DAP | Incoterms | |
| 12 | Locations | List of all Locations | Locations | |
| 13 | Specifications | List of all Specifications. E.g. API, Sulphur, Density | Specifications | |
| 14 | Units | List of all Units. E.g. BBL, MT | Units | |
| 15 | Units | Conversion factors | List of all Conversion factors | Unit Conversions |
Once all the reference data is available, consultants can setup the environment with the data provided.
After the reference data setup is done, it is important to test how the trade will flow from trade entry thru to settlement.
At the same time, the Risk team will verify that the Profit and Loss and Exposure are calculated as expected.
Very often, the views, reports and data that the system captures and displays may not be exactly how the client wants.
In this case, the consultant can use the following tools to configure the views, reports and documents required by the client.
Below are some of the tools available to configure the system:
- View Builder
- Data Model
- Document Builder
- Alert Builder
- Interface Builder
View Builder allows you to add, delete or modify an existing view or report in CoreTRM. In addition, it also allow you to create new views.
Data Model allows you to dynamically add, delete or modify the data structure in CoreTRM. For example, new fields can be created to allow users to enter new information.
Document Builder allow you to build custom document in Word or PDF format for the client use.
Alert Builder allow you to build custom Alerts which can be sent to user by email on schedule basis or on approval.
Interface Builder allow you to create both incoming and outgoing interface message schema and endpoints. The endpoints and schema can be used to interface with external systems.