Molecule calculates P&L, position, and risk for commodity portfolios.
It is designed for companies that trade energy and commodities on exchanges. It also comes with support for OTC and physical portfolios: fixed-price and formula-priced swaps, forwards, options, assets and more.
Molecule is a modern cloud solution, just like many other tools you already use. Gmail, Office 365, Molecule—they all work the same way. You can access Molecule from any modern web browser, on virtually any device.
There's nothing to install, no servers to buy, and no databases to administer. Definitely no IT budget to procure.
POSITION, P&L REPORTING
Molecule downloads trades automatically, from ICE, NYMEX/CME, and Trading Technologies' X_TRADER. You can also enter physical or financial OTC deals easily by typing them in English, just the way you think about them.
Molecule gets to work as soon as it gets your deal. You'll instantly see your trades' impact on your position and inventory, by commodity or book.
Molecule connects to hundreds of data providers via its built-in Morningstar feed, to get marks as soon as they are available. It marks your book using mark-to-market, Black-Scholes, or a model of your choice.
You can then see Molecule's reports on-screen, download them in CSV format, directly connect them to your Excel reports, or feed a downstream system using our JSON API.
GREEKS & VAR
Molecule's built-in Black-Scholes model powers instant calculation of delta, vega, theta, gamma, and second- and third-order greeks you've never heard of. All available on-screen, on reports, and connected to Excel.
Molecule's industry-leading real-time Monte Carlo VaR analyzes your portfolio as it's updated throughout the day—and recalculates itself in a minute. You define the parameters. We use massive cloud horsepower to calculate it. Then you slice it any way you want: by book, geography, trader, commodity, or phase of the moon (if you so desire).
Molecule comes pre-baked with automatic settlement rules. You do nothing, and settlements just happen. Calendars are computed instantly, national and trading holidays are observed, and complex energy blocks are computed automatically. Even better, Molecule's settlement rules get richer as time goes on.
If you want to intervene, you can override anything: change settlement dates, actualize delivery quantities, inject or withdraw from inventory, split and match individual transactions, and more.
Molecule helps you keep a separate set of books from your futures clearing merchant (FCM).
Want to make sure everyone agrees? Give it your end-of-day or top-day FCM statements. Molecule will make sure its records match, and will tell you what's wrong if they don't.
For hedge funds that need to allocate volumes by fund or investor, Molecule automatically splits and/or aggregates volumes as they come in throughout the day.
It then shows you what it has done, asks you to make any last-second overrides, and gives you instructions for your FCM.
It is a true SaaS product, so there is nothing to install. But, speed to implementation is also achieved by keeping master data (products, locations, counterparties, etc.) all on hand as well as built in integrations to external data providers. For example, it connects to multiple exchanges, market data providers, and FCM’s in order to make implementation and integration very simple. What about upgrades? Major capabilities get released every quarter, with features coming out every month – all included in the easy per user per month pricing model.
A user is quickly able to bring their trades in from ICE, CME & NASDAQ and market data from multiple providers such as Morningstar or Globalview in order to automatically generate P&L and risk reports. Bilateral deals can be typed in the product using natural language (like Google search). The data structure is very flexible - the company started in power, and now clients record trades for gas, crude, liquids, NGLs, and other commodity types. Different instruments are supported, such as forwards, futures, options, and swaps.
The product does deal capture, mark-to-market, P&L, and risk across commodities and instrument types. Molecule has started in the financial space and in the near term is finishing its risk management offerings, while planning to support physical transportation and logistics in the mid-term.