Case Study: a leading energy and commodities company achieves improved capital efficiency and lower risk with Nasdaq Risk Platform

Leveraging Initial Margin Replication to Maximize Your Capital

a leading energy and commodities company required a more robust risk management solution to handle unpredictable price volatility and complex hedging. Their existing system lacked the ability to provide complete visibility of positions across multiple clearinghouses (CCPs) and accurately forecast margin requirements. To address this, the company partnered with Nasdaq to implement a solution that would increase visibility, reduce exposure, and improve liquidity management.

Nasdaq worked with the energy trader to implement its Risk Platform, a cloud-based SaaS solution featuring exchange initial margin replication. This system, integrated via API, allows the firm to forecast margin calls, conduct stress testing, and manage cash flow more effectively. The solution from Nasdaq empowered the client to significantly reduce operational risk, better utilize capital for revenue-generating activities, and increase overall capital efficiency.