Trading Domain Case Study

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About the customer

The client was keen to develop a trading platform that allows state-owned and private entities to trade in energy as per their operational needs.
In earlier days, the energy sector was primarily dominated by state-owned entities, however, post-liberalization of the energy sector, our client saw an opportunity and entered into the trading space.
The company provides a range of trading services, including online trading platforms, research and analysis tools, investment advisory services, and market data and news feeds for various energy-related products such as oil, gas, electricity, and renewable energy sources.
Additionally, it provides access to a diverse range of energy products and derivatives, including futures, options, and swaps.

Industry

Technologies

Project Duration

Project Details

The client was seeking a solution that adheres to the regulatory guidelines of the Central Electricity Regulatory Commission (CERC), easily gathers different actors on the platform and enables them to use it. Additionally, the client wanted to launch multiple components under the same offering.

Problem

The primary challenge for the client was to establish itself as a credible player in the market.
Furthermore, adherence to the complex regulatory guidelines of the Central Electricity Regulatory Commission (CERC) was another major challenge faced by our client.
Enabling traders, buyers, and sellers to gather on the platform and use it was a tough task. The key question was to figure out an engagement medium for these actors.
The issue was to launch different products under one umbrella as the client was looking to launch RTM, Intra Day, Forward, and Reverse auctions under the same offering.

An upfront challenge and a potential hurdle in the product’s success was the provision of trade results right away with the help of technology.
Integration was required with the back-office activities in order clear out the logistics and management of a successful trade transaction immediately.
The last challenge faced was the timely delivery of the commodity. In an intraday market setup, the commodity needs to be delivered within 3 hours of trade.

Our Approach

With help from a team of Business Analysts, SMEs of Energy Sectors, and Technical Analysts, we were able to adhere to all the complex guidelines of CERC be they technical or operational.
The complexity of the onboarding process of traders and users was reduced to a minimum; users were able to get onboard easily within less than an hour.
E-KYC was enabled for the users, allowing them to verify their identity in near real-time with integration with a key player in the domain.
Within a single web panel, all 4 (four) products requested by the client were launched and were viewed by users through a single URL.

On the tech front, schedulers were configured, covering all the products that were lined to be traded and handling the bids that were taking place.
A designated middleware was designed which offers interoperability among various systems that were there in place.
Another aligning mechanism was designed which factors in all the desired pNc and allowed the trade to follow seamlessly.
The entire delivery cycle was automated, right from e-cycle, and trade execution to allocation and completion of legal formalities, all the processes were automated.
An analytics mechanism was designed to provide users with real-time insights into the trade that was happening. Additionally, the insights helped a user look after its trading needs.

Benefits

The launch of the portal was a success, and the platform quickly gained market share.
Within the first year of launch, the platform had over 1,000 users and had processed over 1 million transactions.

The platform’s ability to handle the high volume of transactions and provide real-time market data was well-received by users.
The platform was audited by independent third-party firms to ensure compliance with industry standards. The audit was cleared in the initial iteration itself with no critical or major flaws.