Kiodex adds forex capability to energy trading platform

Kiodex, a New York-based energy risk management technology company, has released an updated version of its flagship web-based platform, the Kiodex Risk Workbench. Enhancements include a foreign exchange risk management module, new value-at-risk and cashflow-at-risk reporting tools, and a swaptions calculation tool.

“This release marks a major milestone for Kiodex,” said R Martin Chavez, Kiodex chief executive. “The new modules fulfil our vision when we started the company and complete the platform. With our foreign exchange module, our customers can manage their enterprise risk across multiple asset classes in a single, globally consistent framework.”

Another new feature of the platform means customers can view their physical delivery exposure for physical commodities by aggregating the volumes of physical trades for each date in the future, and show a net mark-to-market for each day.

Energy companies and corporates with significant energy related exposures use Kiodex to design optimal hedging strategies, and to facilitate compliance with mark-to-market accounting standards. Current clients include Virgin Atlantic Airways, Cinergy, Enserco Energy and Union Pacific Railroad.

Although the energy trading sector has suffered a number of setbacks over the past year following Enron’s demise, energy technology companies, such as Kiodex, are noting an upswing in business. Energy companies, in particular, are implementing new technologies to monitor risk exposures to placate nervous shareholders and convince regulators that adequate risk management controls are in place.