TraditionData launches oil swaps pricing data at a critical time in OTC oil traded markets

Rick Steves

TraditionDATA has announced the release of a new proprietary Oil Swap Model (OSM) which brings further visibility into illiquid and opaque oil markets.

crude oil trend

The data and information services division of Compagnie Financière Tradition is addressing the growing need of accurate oil pricing as fossil fuels will remain extremely important within the global energy structure over the next few decades, despite the overwhelming need for decarbonization.

As such, access to accurate oil pricing will remain key in navigating an increased market uncertainty and volatility fuelled by the energy crisis, net zero strategies and a changing competitor landscape.

The unique model has been developed with Tradition’s market-leading oil broking desk and analytical team to create a reliable, independent and market-driven product. Coupled with an established pricing model, the product provides 13,000 updates per second across 20,000 instruments allowing users to spot arbitrage opportunities inter-product and inter-regional spreads.

Real-time source for oil swaps pricing

The proprietary Oil Swap Model (OSM) offers a real-time source for oil swaps pricing data, drawing directly from Tradition’s 22 brokerage desks’ experience and exposure across the globe.

The OSM enables TraditionDATA’s customers to gain visibility into illiquid and opaque oil markets. It provides full product coverage across crude and the refined product spectrum alongside a comprehensive forward curve covering monthly, quarterly and calendar time periods.

This unique product has been created with the expertise of Tradition’s experienced analytical team on its market-leading oil broking desk, coupled with an established pricing model with proven methodology to create a reliable, independent and market driven product.

“A critical time in OTC oil traded markets”

Francesca Marrone, Energy and Commodities Product Manager at TraditionDATA, commented: “Our proprietary Oil Swap Model Product utilises best-in-class data from Tradition, one of the largest interdealer brokers globally, making it a valuable, real-time source for data pricing within oil swaps. It provides our clients with an insight into traditionally opaque, voice traded products, giving them an advantage over their competitors during a critical time in OTC oil traded markets. It’s our mission to provide our clients with access to the data they need when they need it most and we look forward to expanding our offering across a range of asset classes in the coming months.”

The model provides 13,000 updates per second across 20,000 instruments, enabling users to spot arbitrage opportunities within inter-product and inter-regional spreads. The full flexibility on data content and the ability to choose from a suite of data packages to be delivered either in real-time or per chosen snapshots make the OSM a perfect fit for the front office and middle office.

COP 27 has highlighted the need to fasten the pace of decarbonisation. However, the event also made clear that fossil fuel will still play a crucial role in the global energy infrastructure over the next few decades. Access to accurate oil pricing will remain key to financial and commodities institutions to enable them to navigate increased market uncertainty and volatility fuelled by the energy crisis, net zero strategies and a changing competitor landscape.

The release of OSM aligns with TraditionDATA’s mission to offer smaller, granular packages based on currency, region or product which enables clients to only pay for what they actually need.

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