The Speedwell Environmental System (SES) is an open, client-server software application that supports trading in the index-based climate risk transfer market. The contracts supported include "weather derivatives" (eg HDD), derivatives supporting risk transfer relating to renewables (eg Wind Benchmarks, Solar Benchmarks) and other environmental variables including wave heights, sea levels etc.
SES supports contract valuation, portfolio risk management and data warehousing. SES offers full support for front, middle and back office and provides process management of the entire life cycle of a climate derivative trade including trade reporting features. SES provides user permissioning allowing different users to be assigned access to different functionality.
SES supports both vanilla transactions based on daily data as well as complex transactions including gas "quantos", compound transactions based on multiple climate / weather variables and structures based on hourly data.
Who needs SES?
- Users of index-based hedging contracts covering a wide range of variables including wind, solar, temperature, rainfall etc.
- Insurance companies / funds selling index-based risk contracts and managing a portfolio of such contracts
- Entities sleeving contracts between over-the-counter participants or acting as prime brokers / clearing members for cleared climate contracts
Flexibility and simplification
SES is an open system that allows the user to create valuation methods to suit each type of contract from a toolbox of options. SES supports a wide range of climate contract types including those using hourly data, compound indices and super-exotics created through scripting.