Spotlight on post-trade reconciliation in energy markets

Advances in post-trade reconciliation processes have traditionally been slower in the commodity and energy markets than in other asset classes but are beginning to catch up due to improved technology and regulatory pressures, finds Gillian Carr

Post-trade reconciliation in energy trading has traditionally lagged that of financial markets. Recently, however, regulatory requirements, business incentives and advances in technology have driven post-trade reconciliation up corporate agendas, with energy trading firms now paying much greater attention to this section of the trade life cycle in order to reduce risk.

Whether it’s to reconcile trades with counterparties in order to avoid discrepancies, or reconciliation of a firm’s own books in