Global Energy Firm

The Challenge

About This client is one of the world’s leading integrated energy companies, with a significant global presence in LNG trading and shipping. Its trading operations span multiple asset classes, requiring sophisticated pricing, risk management, and logistics optimisation capabilities.

 

Situation The client’s LNG Shipping and Trading desk operated highly complex deals, effectively treating each contract as a structured derivative spanning Natural Gas, Oil, Power, Inflation, and Shipping.  The existing environment relied heavily on spreadsheet-based models, creating limitations in scalability, transparency, and risk control. Integration with core systems such as Endur was fragmented, and risk calculations lacked consistency across real-time and batch processes.

Our Approach

RocketFin was engaged to design and implement a scalable, enterprise-grade pricing and risk platform using Beacon. The objectives were to:

• Replace legacy spreadsheet-based models with a robust, auditable platform
• Model complex LNG deals as structured derivatives within Beacon
• Integrate seamlessly with Endur for trade capture and market data
• Enable real-time and batch risk processing (EOD, SOD, intraday)
• Align deployment and governance with the client’s internal IT standards

 

Project Management Methodology
An Agile delivery model was adopted, with iterative releases and close collaboration between RocketFin quants, developers, and client stakeholders. Continuous validation ensured alignment with trading desk requirements.

 

Technologies Used
• Beacon Platform for pricing and risk analytics
• Endur integration for trade and market data flows
• AWS (client-hosted) and Amazon S3 for infrastructure and storage
• Python (Behave) for BDD-based testing
• Custom client-built automation and testing frameworks

 

Solution Design
• Translation layer for converting Endur trades into Beacon deal objects
• Automated batch processing for Greeks, PnL explains, and risk metrics
• Integration with the client’s BDD testing framework for validation and governance

 

Risk Management
Key risks included integration complexity and ensuring consistency between legacy and new models. These were mitigated through phased rollout, parallel runs, and rigorous automated testing.

 

Governance
• Regular sprint reviews with trading and technology stakeholders
• Structured validation cycles aligned with the client’s governance processes
• Close coordination with client architecture and infrastructure teams

 

Service Lifecycle (ITIL-aligned)
• Development: Modular model development and integration layers
• Testing: Automated BDD testing and regression validation
• Deployment: Controlled releases within the client’s hosted environment
• Support: Documentation, handover, and ongoing model support

The Outcome

The implementation delivered a fully integrated, enterprise-grade LNG pricing and risk platform, enabling the client to:

 

• Eliminate reliance on spreadsheet-based models
• Achieve consistent, auditable risk calculations across all LNG deals
• Integrate real-time and batch risk seamlessly into core systems
• Reduce operational risk and manual intervention

 

The platform now provides a scalable foundation for future LNG deal modelling and supports more sophisticated trading strategies with improved transparency and control.