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

Upcoming Webinar: FRTB: What still needs to be done before the global deadline of January 2023?

Date: 8 March 2022 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes While implementation of Fundamental Review of the Trading Book (FRTB) regulation has been delayed twice for reasons first of complexity and second of the coronavirus pandemic, the final deadline of January 1, 2023 is less than a year away....

BLOG

How Easy Access to Trusted Data Drives Operational Efficiency for Finance Firms

By Neil Sandle, Head of Product Management, Alveo. Today, we’re seeing rapid growth in data volumes and in data diversity within financial services firms. Different trends contribute to this growth of available data across the sector. One driver is that firms need to disclose more in order to comply with the continuing push towards regulatory...

EVENT

Virtual Briefing: ESG Data Management – A Strategic Imperative (Redirected)

This briefing will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

Entity Data Management & the LEI

Just over a year since the Financial Stability Board handed over leadership and direction of the interim Global Legal Entity Identifier System – or GLEIS – to the Regulatory Oversight Committee (ROC) of the LEI the entity identifier is being used for reporting under European Market Infrastructure Regulation. This report discusses recent developments in the...