''With millions of trades each year, it’s not always easy to ensure that the trade details we have match what the counterparty has on their end. This creates a gap where we can’t be entirely sure that our data is correct. We needed a way to confirm trades more efficiently and effectively.''
The value of accurate trade confirmations became particularly evident when trading with counterparties on the enmacc OTC market venue, a key platform used by EWE and many of their municipal suppliers and utilities clients to trade power and gas. While enmacc has been a long-standing partner for EWE, the company needed a solution to bridge the gap when counterparties do not match electronically or fail to respond to PDF trade confirmations in a timely manner.
van Wijngaarden added: ''We are highly focused on automation and need to base our processes on a high degree of automation. With the large volume of trades to confirm, now and in the future, it’s essential to ensure that what we have in our system matches what our counterparties have. With enmacc and Fidectus' new Broker and Trader Confirmation solution, we gain greater assurance that the data captured is accurate and matches the data of our counterparties.’''
The decision to explore Fidectus further was made after evaluating Confirmation Hub’s potential to integrate smoothly with EWE’s existing infrastructure and its ability to address the gaps in trade confirmation. Peter Stomberg, Head of Trading IT at EWE, shared:
''We’ve been using enmacc for years and it’s been an integral part of our trading operations. As market dynamics evolved, we saw the need for a more streamlined confirmation process. After closely following Fidectus for the past couple of years, we recognised that Confirmation Hub was the right fit for our needs, especially with the integration of enmacc and the new Confirmation and REMIT Services enmacc and Fidectus now offer to our clients and counterparties.''
Seamless REST API Integration into EWE’s System Landscape
EWE’s multi-cloud approach, built on SaaS components, ensures that all platforms and tools within their software landscape are easily connected and scalable. The REST API integration of Confirmation Hub is pivotal in automating their trade confirmation processes without disrupting existing workflows.
Over the past few years, EWE had been aware of Fidectus and its solutions, particularly Confirmation Hub, as an innovative tool that could streamline the trade confirmation process. Confirmation Hub emerged as a strong contender for EWE, particularly after enmacc recently partnered with Fidectus to expand the electronic services offered to their client network. With the broker confirmation integration, enmacc now provides close to real-time trade data to the Fidectus post-trade hub via an API.
''We want our clients to do business with us as easily as possible, especially in the post-trade process'' said Stomberg. ''We understand that post-trade activities take up a significant portion of the margin, so being quicker, more efficient, and providing a higher level of service is key,'' he continued. ''Through streamlining these processes, we help clients retain more of their margin, while enhancing their overall experience. It’s all about making the post-trade process faster and more seamless,'' added Stomberg.
By automating the confirmation process, Confirmation Hub reduces the need for manual oversight, minimises the risk of errors and saves valuable time for the back-office team. It also introduces an efficient, intuitive web interface that streamlines workflows, significantly improving control, audit-compliance, and operational efficiency. This automation not only enhances day-to-day operations but also ensures that EWE maintains high standards of regulatory compliance, meeting evolving reporting requirements with ease.
''Our current system just doesn’t compare to the modern, intuitive features of Confirmation Hub,'' said van Wijngaarden. ''After a quick demo, it was clear how much more efficient this system is,'' he explained. ''For example, the ability to drag and drop makes it easy for our back-office team - who aren’t programmers - to design Custom Confirmations that used to be a hassle. Previously, we had to manage a multitude of templates to accommodate different product layouts or specific client requests, which was always a bit tedious. With Confirmation Hub, the process is streamlined, and even creating PDF confirmations that look polished and meet specific requirements is effortless.''
"With Confirmation Hub, we enhance our efficiency, reduce costs, and gain more assurance that our trade data is accurate and aligned with our counterparties," added van Wijngaarden.
Another key feature is Confirmation Hub's flexibility in processing and matching confirmations via multiple distribution channels (such as electronic, interoperability, email/PDF), for any commodity and product, and with all market participants. This will allow EWE to send and receive confirmations through the preferred channel based on counterparty preferences, optimising operational costs, and increasing their service level. Additionally, the ability to validate and match all confirmations for all commodities and products through Confirmation Hub provides EWE with greater confidence that their trade data is accurate and aligned with counterparty records, ensuring a higher level of reliability, and audit-compliance.
The Future: Scalability and Strategic Growth
EWE is committed to further automating and streamlining its trading processes, and the integration of Confirmation Hub is an essential part of that strategy. Looking ahead, EWE plans to continue leveraging Fidectus and enmacc to support their growing needs and to adapt to new market conditions.
As EWE navigates new trading markets and technologies, particularly the transition to Energy Trader Europe´s electronic Settlement Matching (eSM) industry standad meeting DIN EN 16931, Fidectus will play a critical role in ensuring that their back-office operations remain efficient, scalable, and compliant.
''My goal is to digitalise all our settlement workflows in accordance with the eSM standard. We already offer to send electronic eSM invoices on a voluntary basis, but starting January 1st, 2027 we will need to comply with new Requirements for E-invoices for German counterparties. We want people in the energy trading community to adopt eSM and start talking about it more. The eSM matching process is already an established process between more advanced trading organisations. Market participants are invited to reach out to us and learn from our experiences with our eSM implementation,'' said van Wijngaarden.
''The ability to integrate Confirmation Hub into our broader infrastructure positions us well for the future. As we continue to expand and innovate, we’re confident that Fidectus and enmacc will remain key partners in our growth,'' said Stomberg.
Conclusion
EWE’s adoption of Confirmation Hub marks a significant step in their journey toward enhanced operational efficiency, compliance, and automation. By partnering with Fidectus and leveraging their advanced trade confirmation solutions, EWE improves their back-office processes, ensuring accurate and timely trade confirmations for both, electronic and pdf. As the energy trading landscape continues to evolve, Confirmation Hub will remain a central component in EWE’s strategy to stay ahead of the competition and meet the growing demands of the market.
Fidectus : May 11, 2023 10:45:00 AM
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