Case Study

CASE STUDY: Top 5 Energy Merchant Uses Compliance Tech for Better Risk Management

Top 5 Energy Merchant Uses Compliance Tech for Better Risk Management

“K3’s flexibility to easily integrate with our existing technology stack and global coverage made it an easy choice for our needs.”

-CTO

 

Key Results

  • Complied with new MiFID2 regulations without disrupting internal operations
  • Leveraged compliance data to provide critical reports to risk teams
  • Delivered visual reports for middle office to manage positions intraday
  • Automated coverage for position limits and trade surveillance globally

 

The Customer

One of the world’s top 5 independent energy and commodity trading companies was seeing great growth in their business and needed to build out more reliable compliance capabilities. Simply put, the company outgrew its current solutions in an increased regulatory environment. They had invested in tools when the business was smaller, but some of it was not suited to scale, some components were not reliable and needed regular manual intervention, and other aspects were not aligned with their strategic direction.

The Challenge

The firm has a highly capable technology team, however, the scope of items to replace would have been a significant burden both to build and then maintain. Additionally, end-of-year deadlines imposed by regulators created urgency to deliver a fully-featured compliance suite. Finally, a highly regulated entity within their global group generated further incentive for a comprehensive solution, and the firm looked to the marketplace for a reliable vendor offering.

The Solution

At the end of the selection process, the firm settled on Broadpeak’s K3, as it was able to handle all of their current challenges, gave them control without having to rely on the vendor, and could also scale for future needs at an attractive pricing structure. The internal team consisted of people with strong project management, long term architectural considerations, and the full engagement of Compliance leadership. Through this structure, combined with minimal support and guidance from BroadPeak’s delivery teams, K3 is now successfully delivering:

  • Exchange and MiFID2 Position Limits monitoring
  • Trade Surveillance to comply with European Market Abuse Regulations (MAR)
  • REMIT Trade Reporting for wholesale energy products
  • MiFID2 Position Reporting

The Result

The firm was able to meet all deadlines, fulfill regulatory obligations, and set themselves up to scale their business with confidence. Due to great internal engagement, the firm also turned efforts and money spent on a regulatory project into something meaningful to drive their business. By using K3 to organize and manage all their data, they now have a foundation upon which they are able to drive better insights for their traders and risk managers, while their technology and business analysis teams have the flexibility and control to adapt to new products, processes, and regulatory requirements.


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