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Our knowledge, skills, and expertise — empowering you to optimize and grow your business

Clearing Partner Selection

CMeXs supported a major Scandinavian utility in optimizing its clearing portfolio and selecting the most suitable clearing provider. After conducting a thorough initial analysis, we developed a tailored strategic proposal that guided the company through every stage of the professional clearing bank selection process. This included:

in-depth portfolio and risk analysis,
defining a clear strategy,
drafting and managing a structured RfP process,
setting transparent evaluation criteria, and
calculating and comparing multiple proposals.

Given the scale of the portfolio and the significant financial implications, each step was handled with utmost precision. The outcome was a partnership with a highly reliable clearing provider — further strengthened by additional financial services that created long-term value for the client.

Result: An optimized clearing setup, reduced risk exposure, and a strategic partnership delivering both stability and new opportunities.

Risk related to Clearing Banks, CCP’s and Exchanges

On behalf of a leading European Utility and triggered by the financial turmoil in 2012 a inventory is done on the legal liabilities towards a range of counterparties related to exchange trading. At the same time the differences between nation specific laws on a global scale are mapped in order to define the right set of counter measures that secures a max. level of protection.

Exchange Membership Optimization

A detailed study for a main utility on the continent is covering all aspects and cost drivers to review the trading relation with one of the leading global commodity exchanges. Based on traded volumes, fee variations between the different types of memberships and prognosed trading activities it is concluded that a direct trading membership brings a serious cost reduction. At the same time eventual side effects of regulations are considered to avoid negative impacts. The final recommendation is implemented and turned into a sustainable cost reduction, year by year.

Standard data incl. reconciliation matrix definition

To increase the operational efficiency a range of standardisation is defined within the operations area for exchange and clearing related business. This results in improved quality of work, efficient issue solving and faster implementation of new products and allowing the trading desk a more flexible early mover approach in emerging markets with related benefits and profits.

The setup of a reconciliation matrix includes the definition of deal attributes per commodity to ensure a clear processing and easier setup of new products.

Restructure Operational Team

For an European exchange the operational department was reviewed and made fit to meet the requirements related to the strict rules of the financial markets. The successful restructuring enabled the company to obtain a Regulated Market license.

Optimization of reconciliation process

For a leading utility a generic reconciliation process is developed and implemented. In this way the dependency to external processes is reduced to a simple data mapping item. The reconciliation process is brought to a more sophisticated level resulting in less mismatches, less manual interventions and faster processing.

Transaction Costs Optimization

Based on a full year of trading date a full set of variables and cost drivers is analysed to get a higher level of transparency and enable faster response to changing market variables. This the basic for a further optimization of trading (related) costs and understanding the effect of strategy related trading decisions. At the same time the top 5 utility is delivered a list with recommendations on potential cost savings in height of several m€.

Response to Default Close Outs

Preparation is the key to achieving strong results — especially when dealing with unexpected events such as the sudden default of a market participant.

CMeXs supported a leading market player by designing a complete framework to ensure an optimal and rapid response in such scenarios. The process focused on three critical elements:

Market value assessment – precise evaluation of the portfolio’s worth under stress
Risk potential analysis – understanding exposures and vulnerabilities
Capability alignment – ensuring the portfolio fits with the company’s trading, risk, and operational strengths.

Speed and coordination are crucial in default situations. CMeXs facilitated seamless collaboration internally (trading desk, risk, operations) and externally (clearing bank, CCP and other stakeholders).

Result: a robust, ready-to-activate process, giving the client confidence to act decisively and protect its position in times of market stress but also gain available opportunities at reduced prices.

Clearing Margin Forecasting

Due to the increased financial impact of margin calls, CMeXs has restructured the entire margin handling process for a major gas importer. This includes having an indication at the end of the trading day of the expected margin call that will follow the next morning. This provides more control over estimating the accuracy of the margin call, but also gives the finance department more time to balance the necessary cash instruments and limit costs.

CMeXs can advise you on the solution that best suits your business and budget.

The CMeXs Core Values

CMeXs is a management consultancy known for a non-conventional approach. Nothing is what it seems to be and different ways to look at things are the guarantee for astonishing and profitable results.

At the same time CMeXs is known for factual analyses and inventories that are used for deliberative recommendations and solutions. A practical and efficient approach combined with well prepared implementations is the guarantee for a cost effective spend of investments

Projects