Derivatives trading platform for hedging swaps and options in the energy industry.

Derivatives trading platform for hedging swaps and options in the energy industry.

The challenge

With a vision of transforming a heavily manual and time-consuming industry such as financial services, NovaFori built an OTC marketplace to increase trade competitiveness and participation in the Crude, Natural Gas and Liquids market.  

The solution

The purpose of the project was to build highly efficient software that can be used in the energy derivatives market to run trading operations on a daily basis. The platform streamlines the process of buying and selling energy derivatives (fixed swaps, index swaps, basis swaps and options) globally, but can be applied to a wide range of other financial assets.

Key features:

  • Create Trade - Trades can be posted fast with type-ahead predictions and pick-lists narrowed based on previous field selections
  • Publish Trade - Eligible counterparties automatically notified and invited to participate in upcoming trades
  • Enter Bid - Counterparties can see all trade details, submit / update bids and see their bid history in one clear user interface
  • Enter Mid - Option for counterparty to enter the mid value when submitting a bid for Dodd Frank compliance
  • Ranking - Counterparties can see the rank of their bid relative to other bidders to increase transparency & drive competitive pricing
  • Work Bid - Trader can invite a counterparty to work a bid, to get as close as possible to the target price and volume
  • Select Winner -Trader can select a winner or end the trade at any time so counterparties are encouraged to enter their bid early
  • Confirm Bid - Once a winning counterparty has been selected, they have 15 seconds to confirm their bid and accept the trade
  • View Trade Details (Company) - Companies can view details of trades executed on their behalf
  • View Trade Details (Counterparty) - Counterparties can see all trades to which they were invited even if they didn’t participate or didn’t win the trade