New Excelergy Software Solution Transforms Energy Company Back Office Operations into Profit Makers.
LEXINGTON, Mass.--(BUSINESS WIRE)--April 17, 2002
Excelergy Trader BackOffice Automates Energy Scheduling, Settlement and Communications With Market Operators and Participants to Accelerate Revenues, Improve Cash Flows, Reduce Costs
Excelergy Corporation today officially released its newest software product, Excelergy Trader BackOffice, designed to automate back office business processes for traders and generators participating in physical energy markets around the world. Excelergy Trader BackOffice is a highly scalable platform that automates the scheduling, settlement and collaborative communications necessary to facilitate trading in high-volume, real-time physical energy markets.
"Given today's renewed emphasis on asset-backed physical trades and physical markets, profit opportunities are now shifting to the back office," said Bill Mahoney, president and chief executive officer of Excelergy Corporation. "To the extent energy traders and generators can fully automate and streamline their mission-critical back office processes, they will surpass their competitors through accelerated revenue growth, improved cash flows and collections, and lower cost of ownership and operation."
Trader BackOffice's automation of scheduling, settlement and communications processes eliminates mistakes and inefficiencies associated with manual spreadsheet-based management of even the most complex trading deals. It minimizes missed scheduling opportunities and under- or over-scheduling errors, reduces settlement disputes, speeds dispute resolution and settlement, and ensures efficient communications with market operators and market partners alike. Excelergy's open, object-oriented, native XML technology design allows easy integration with in-house or third-party trading, risk or accounting systems.
"Since energy trading markets emerged in the 1990s," added Mahoney, "they were dominated by derivatives trading, which required sophisticated front office IT systems to automate processes like trade capture and risk management. FERC and other government regulatory agencies around the world are now ushering in a new era of standardized physical energy markets to ensure open and fair wholesale competition, bring down barriers to market entry, and gradually lower prices and improve service for billions of global energy consumers. At the same time, many large energy traders are once again placing greater emphasis on asset-backed physical trades."
"This growing emphasis on physical markets is producing a large increase in the volume and complexity of physical transactions, placing a huge strain on the traditional back office systems for scheduling, settlement and communications with market operators and market partners. Yet many energy back offices still rely on manual, error-prone spreadsheet management of these transactions. Trader BackOffice provides the technology to replace these profit-draining manual processes with profit-making opportunities."
In today's physical energy markets, a single missed or mishandled scheduling opportunity can cost a company millions of dollars in revenue--and thousands in penalties--within a matter of minutes. As recently reported in the April 2002 AMR Research Report on Energy, "Understand Your Financial Exposure: Scheduling and Settlement," Jill Feblowitz noted that "Energy companies transact close to a million dollars a day for physical delivery in markets run by Independent Systems Operators (ISOs), but the settlement of those transactions may not occur until months after the power flows. Assuming a conservative error rate of 2% in invoice calculations, a large market participant could be exposed to losses of tens of thousands of dollars per day without even knowing it."
"While front office traders in past years have been busy hedging against supply and price volatility," concluded Mahoney, "they've often overlooked the back office threats to their profits, even though they have similarly harsh impacts on the bottom line. As physical markets continue to drive up the volume and complexity of physical transactions, fully automated back office operations are becoming a bottom line necessity."
About Excelergy Corporation
Excelergy is the world's leading provider of high performance software products automating mission-critical business processes in the restructuring energy and utility industry. Excelergy automates six core business processes--forecasting, trading, scheduling, billing, settlement and customer/partner acquisition and care--through its growing number of product lines. These highly flexible, scalable products are based on an open, object-based, Web-architected, native XML technology platform. Excelergy's North American headquarters are located in Lexington, MA, with its European headquarters in Bristol, England and its Asia-Pacific operations based in Melbourne, Australia. More information is available at www.excelergy.com.
|Printer friendly Cite/link Email Feedback|
|Date:||Apr 17, 2002|
|Previous Article:||Fitch Exp To Rate Capital Auto Receivables Asset Trust 2002-2 'AAA'.|
|Next Article:||EquityOutlook.Com Announces Investment Opinion: ALERT: Rating Change for Linear Technology, Computer Assoc Intl, Vitesse Semiconductor Cp, Abbott...|