Real-time profit-loss and positions are instantly available for all contracts in the system. Physical and financial contracts are priced in a consistent way, using the same price and volatility curves. This is essential for organizations that want to do physical/financial hedges, or make profits from mispricing between the physical and financial markets. Important differences between physical and financial contracts are well understood and incorporated into all pricing and risk assessment procedures used in Matrics, including net/gross differences, quality factors for physical assets, and lagging differences. Attempting to hedge physical assets with financial positions without proper understanding of these issues will lead to non-optimal hedges and potential large losses.
The portfolio module in Matrics is designed to be flexible and well suited for "what-if" analysis, while still incorporating a number of security features to ensure high data quality. For example, all contracts will receive a ‘draft’ status when initially entered. They will only become part of the official portfolio when they are later ‘submitted’. This allows the trader to keep any number of potential future trades as draft contracts, and perform all sorts of pricing and what-if analysis with these. Once a trade is actually committed, the draft contract is ‘submitted’ by the trader for control and ‘acceptance’ by back office.
