For example, the price of crude oil around the world may be closely correlated, but each oil contract refers to a particular type of crude. The three leading benchmarks – Brent crude, West Texas Intermediate and Dubai crude – are those most widely quoted; but there are hundreds of other sources each with their own distinct physical characteristics, which alter their price relative to those benchmarks. Similarly, power markets have their own unique characteristics given differences between regional, temporal (peak and off-peak) and seasonal fluctuations in supply & demand.
TimeScape EDM+ is built on a flexible data model that is fully extensible to ensure our customers can easily accommodate the nuances of each asset class. Whether it’s a simple exchange traded future or a complex OTC derivative – the platform allows you to define the key attributes of a contract and model dependencies between derivatives and their underlying, whether they be securities, physical commodities or even other derivatives. Equally, the platform’s ability to support complex objects, like forward curves and volatility surfaces, is crucial for derivatives market participants who rely on this kind of data.
In addition, TimeScape EDM+ offers an easily configurable data validation engine that enables customers to create adaptive validation rules based on the nuances of each market. For example, knowing that Brent crude is typically priced slightly above WTI means you can incorporate that relationship into data validation tests – helping to flag anomalies using rules that have been customised to that particular asset class.