Solutions / Lacima Analytics / Contract Types

User-Defined

 

Capture Any Non-Standard Energy and Commodity Contract Payoff.

Your User-Defined Contracts Questions

How can I account for the complex characteristics of non-standard energy and commodity financial contracts?

Is it possible to capture and manage the unique payoffs of over-the-counter energy or commodity deals?

Our User-Defined Contracts Solution

Value, hedge, and risk manage user-defined, customised payoffs for any derivative-style contract including indexation contracts. The User-Defined Contracts module’s built-in code editor provides the flexibility to define any payoff model for even the most complex contract structures.

Define payoffs via standard mathematical notation with reference to risk factors, curves & constants and run simulations of multiple correlated forward curves, factoring in risk variables like price, load, temperature, wind speed and solar irradiance.

Powerful analysis tools allow historical lookbacks and averaging over simulated spot and forward prices.

The flexible User-Defined Contracts editor lets you accommodate any non-standard structure.
A screenshot showing Lacima's flexible user-defined contract editor which allows the capture of any non-standard payoff.

The User-Defined Contracts Features

  • Define Custom Payoffs
    Capture any unique or complex payoff with the built-in editor.
  • Flexible Contract Structuring
    Define unique contract structures using mathematical notation including risk factors, curves & constants.
  • Correlated Risk Factor Simulations
    Simulate multiple correlated forward curves to assess the impact of key risk factors like price, load and demand.
  • Historical and Simulated Data Analysis
    Improve forecasting and scenario analysis with averaged historical and simulated spot and forward prices.

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