SunGard Chosen by Lloyds TSB Corporate Markets to Support Commodity Derivatives
Lloyds TSB Corporate Markets will use SunGard’s Kiodex to support its growing commodity business for its clients. Lloyds TSB Corporate Markets provides trading and risk services for precious metals, London Metals Exchange (LME) base metals, crude oil and refined petroleum markets. Kiodex is a Web-based commodities risk management solution that integrates deal capture, valuation models, risk measurement, financial reporting and independent market data. The SunGard solution will be used by Lloyds TSB to support 20 instrument types and 1,400 distinct commodities. Kiodex also provides the ability to demonstrate the profit and loss and risk impacts of not entering into transactions to hedge commodity price risk. Lloyds TSB plans to use this functionality in conjunction with other software tools to provide its clients with a comprehensive suite of hedge effectiveness testing for fair value and cash flow hedges, across asset classes, on all of its client solutions.