Wednesday, 31st July 2019 – London, Houston, Berlin. CubeLogic is delighted to announce the latest release of its energy and commodity specialised transaction surveillance software CubeWatchTS R6.0 with significant enhancements to its market leading energy and commodity market capabilities. This release also marks the first milestone toward integrating transaction surveillance into the RiskCubed platform following the acquisition of FERDEC earlier this year.
In response to the recent flurry of activity by regulators in physical energy markets, Version 6.0 features additions and enhancements to our market leading CubeWatchTS analytics engine relevant to these developments.
“There is compelling evidence to suggest that energy regulators in Europe and the US are getting to grips with identifying abusive behaviour in physical energy markets. Many of the enhancements in R6.0 reflect this trend. There is finally broad consensus emerging that effective surveillance in these markets is the only way to stay ahead of the regulators with any sort of confidence.”
David Priestley, Chairman of CubeLogic
Enhancements have been made to the CubeWatchTS Insider Trading indicator, itself a market first having been in place for several years already. Now the physical aspects of Urgent Market Messages (UMMs) are dynamically analysed and applied to the relevant market segments at contract level to consider the timing, size and relevance of each UMM. This significantly raises the precision of the indicator and significantly reduces the number of false positives produced. This is a timely enhancement given the recent consultation launched by ACER, the pan-European power and gas regulator, on the disclosure of inside information – undoubtedly a harbinger of future regulatory focus in this area.
We have further introduced a new indicator to enable Capacity Monitoring. This indicator incorporates the results of auctions in the energy markets and alerts firms when they near a position that enables them to exert market power in adjacent markets/market areas – a behaviour which is increasingly attracting regulatory scrutiny. The logic identifies such activity between both interconnected markets and bidding zones, all of which come pre-mapped and configured in our standard solution.
Finally, significant enhancements have been made to our market abuse indicator repository which now enables firms to accurately identify instances of Pre-arranged Trading. The new pattern alert works in part by considering the conformity of trade executions with the order book to identify where collusion might have taken place.
In addition to our core functional enhancements, improvements have also been made to our analytics engine and User Interface to improve both usability and efficiency in producing and analysing results.
We are confident that with these enhancements, along with our committed, funded roadmap, CubeWatchTS remains the undisputed leader in effective surveillance in physical energy and commodity markets.
CubeLogic is the supplier of the RiskCubed business intelligence enabled risk management platform for all energy, commodity and financial markets exposures arising from market risk, credit risk, liquidity risk and regulatory compliance. CubeLogic’s founders are renowned experienced industry specialists who have an impressive track record of developing and implementing global risk IT solutions.
Please contact us for more information.