Speedwell Environmental System

Enterprise software for pricing and managing a portfolio of climate risk contracts

Product Highlights

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.


SES Core Functions
  • Price / analyze index-based climate risk contracts
  • Manage risk
  • Process contracts, invoices, settlement...
  • Manage historical weather data, feeds and forecasts
  • Help meet regulatory reporting requirements


Front Office Features
  • Valuation
  • P&L Management
  • Ticket Booking
  • Data Quality Control
  • P&L Reports
  • Daily & Expiry VaR Reports
  • Structuring Tools – Burn Analysis, Distribution fitting, correlation analysis, multi-model analysis, reverse pricing all supported
  • Super Exotics, Strips (multi year, month, flexi), compound indices all supported
  • Temperature-Gas Quantos


Middle Office Features
  • Mark-to-market / Mark-to-model
  • Risk management VaR
  • Credit Risk Reports
  • P&L Reports
  • VaR Reports (Expiry VaR, Daily VaR)
  • Regulatory reporting tools
  • Simulations
  • PCA / SSD analysis
  • Link to external pricing tools using Speedwell weatherML


Back Office Features
  • Full user Permissioning
  • Regulatory Reporting
  • Full trade lifecycle management
  • Batch processing of settlement Calculations
  • Full auditing
  • Document management
  • View trades / confirm
  • View reports
  • Post settlement adjustment alerts
What licences are available?

SES is available for a single front office user to full enterprise users. SES provides user permissioning allowing different users to be assigned access to different functionality.


What modules are available?
  • SES Data Manager and integrated database for Climate Data. SES Data Manager Executable.
  • Front Office Climate Contract pricing tools- part of SES Desktop executable.
  • Middle Office Portfolio Risk Management tools allowing the risk on a portfolio of Climate Contracts to be monitored - part of SES Desktop executable.
  • Back Office Transaction Life Cycle Support components relating to managing the life cycle of a climate contract including trade reporting- part of SES Desktop executable.
  • Invoice and Contracts Module: providing post trade functions relating to managing Climate Contracts: Invoice and Contracts executable.
  • weatherXchange® Integration components including Automated Pricing Service, APS - part of APS executable.
  • ClearWeather Integration components: [COMING SOON] software components relating to trade booking and calculations of margin for Climate Contracts cleared through the incipient ClearWeather flexible clearing service - part of SES Desktop executable.
  • RESTFul/WCF Data API to serve other desks


What are the installation / hosting options?

SES may be internally installed at the client site or may be hosted internally at Speedwell or on the Azure platform.