The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

AP Møller-Mærsk Picks SuperDerivatives for Energy Option Valuations

Global shipping and energy company AP Møller-Mærsk has selected SuperDerivatives to provide independent valuations for its energy options and swaps.

Amitai Razon, sales executive for the Nordic region for SuperDerivatives, indicates that the vendor first met Møller-Mærsk in August last year, after which the firm began testing the vendor’s service in February this year.

The AP Møller-Mærsk Group is present in the oil market as both producer and consumer and currently holds a portfolio of about 900 energy options and swaps. Thomas Skytte, head of middle office and risk management for Maersk Oil Trading, which is responsible for hedging the group’s oil price risk, explains the reasoning behind its choice of SuperDerivatives: “In order to achieve best practice standards and adhere to our corporate governance policies, we needed a third party valuation service we could depend on to complement our own in house systems. After reviewing the available valuation solutions, we came to the conclusion that the best product for the AP Møller-Mærsk Group was SuperDerivatives.”

Skytte continues: “We found SuperDerivatives’ platform to be unique. It provides a one-stop-shop solution, including all market data and modelling. This not only facilitates valuation since we are not required to input our own data and curves, but also yields accurate valuations which corroborate our internal calculations.”

Razon adds the vendor’s perspective: “They chose SuperDerivatives for several reasons. A main factor was our broad asset coverage. We have the market data and the modelling techniques to be able to value crude oil product and refined oil products that other providers can’t do. They also liked the automation of the service – they send us the portfolio on a weekly basis and we send them the results efficiently and accurately. Finally, it was influenced by our strong market reputation in the Nordic region, for example, Nordea and Carnegie are also using SuperDerivatives and this had an impact on Møller-Mærsk.”

He does not see any problems in the future with regards to meeting the shipping and energy firm’s requirements: “Our broad asset coverage enables us to fulfil all of Møller-Mærsk s demands and we cover all of the underlying instruments they need to evaluate. We are also able to add further coverage should the need ever arise.”

Related content

WEBINAR

Recorded Webinar: Entity identification and client lifecycle management – How financial institutions can drive $4 billion in cost savings

A new model in Legal Entity Identifier (LEI) issuance has created significant opportunities for financial institutions to capitalise on their KYC and AML due diligence. By becoming Validation Agents and obtaining LEIs on behalf of their clients, financial institutions can enhance their client onboarding experience, streamline their internal operations, and open the door to new,...

BLOG

Australian Superannuation Fund QSuper Selects Matrix IDM for Integrated Data Management Solution

QSuper, one of Australia’s largest superannuation funds, has selected Matrix IDM’s data management product to provide a fully integrated solution across security, pricing, positions, accounts, risk, performance, and corporate actions data. The fund was looking for an off-the-shelf data warehouse to support a data strategy project that would create a vendor and custodian agnostic data...

EVENT

Data Management Summit USA Virtual

Now in its 11th year, the Data Management Summit USA Virtual explores the shift to the new world where data is redefining the operating model and firms are seeking to unlock value via data transformation projects for enterprise gain and competitive edge.

GUIDE

Managing Valuations Data for Optimal Risk Management

The US corporate actions market has long been characterised as paper-based and manually intensive, but it seems that much progress is being made of late to tackle the lack of automation due to the introduction of four little letters: XBRL. According to a survey by the American Institute of Certified Public Accountants (AICPA) and standards...