Molecule Software Blog

The Molecule Software ETRM/CTRM Blog

New Feature: Inventory Tickets

v243 of Molecule released this week! In it was an important new feature for our physical trading customers: Tickets – for delivery, shipping, and inventory.

What do Tickets do?

With Tickets, Molecule users can:

  • Increment or decrement actual volumes when commodities schedule, ship, or arrive, and compare these to contracted volumes
  • Compare contracted renewable credits with physical credit deliveries
  • Manage, mark, and true up inventory buckets directly (as opposed to only via physical trades)

Why is this Important?

Molecule has been on a long journey to build the easiest-to-use & most technologically-advanced ETRM/CTRM. We've supported physical and financial customers on our platform from Day 1 – but our physical customers have often advocated for more features.

Last December, we released our Inventory feature, which takes volumes from settled physical deals,  increments/decrements stored amounts, and calculates weighted average prices. We've enhanced it since then – adding functionality and polishing rough edges – and put it into regular production use.

Tickets is the next logical step in our physical logistics journey: direct access to deliveries and all the complexity around them. We have many enhancements planned for this feature – from custom fields, to a world-class ticket/deal-linking screen, to special options for renewables. We owe a big "thank you," to the customers who have helped us design this feature.

We're working hard on our logistics stack, and there's much more to come – so keep checking in with us!

What fields do we capture?

Tickets are typically linked to a Trade, so can inherit all the trade's attributes. In addition, Tickets can override a price or quantity. Custom fields for tickets are coming soon!

POST API for Tickets

How do I get the Feature?

All Molecule customers on the Core package and up, now have access to Inventory Tickets.

To learn more or ask questions about this new feature, please reach out to info@molecule.io. Or, if you are an existing customer, please reach out to Molecule's customer success team.

New Feature: Custom Fields Galore

The Molecule Ecosystem

Top Questions Our Sales Team Is Asked

Software

Falsehoods About Time in Energy Trading

With Daylight Savings Time starting soon, we've been thinking a lot about time.

At Molecule, we do a lot with power. Which means we do a lot with time zones and hours-of-the-day, and even hours in a day, which – in case you didn't know – varies twice a year, and on a different day in the US and Europe. (Yep, we're talking about the daylight savings time switchover days).

Our lead engineer brought this readme to our marketing team's attention. It reminds me of the hours spent agonizing over the minutiae of time zones, with regards to energy markets. It's worth a read, and I'd like to add a few more Falsehoods About Time:

  1. Hour-Ending fits in a date data type
  2. Power market operators choose time zones based on easy, constant differentials from UTC
  3. Power market operators always choose time zones that line up with their geography
  4. Power markets span single time zones
  5. The DST switchover day is the same in every country
  6. States and municipalities never change their minds about which time zone to be in, when.

Time is just plain hard!

There might be people who believe that we're overcomplicating things with all of these concerns. (Honestly, we originally had some of those concerns as well!). But a key takeaway is, on the day of the DST changeover in a locale – we call that the DST transition day – someone needs to put an hour extra worth of coal in the generator. Or an hour less.

Power itself is complicated to trade. There are myriad contract types and prices across seven ISOs in the US alone. Power itself is complicated post-trade when operations teams have to perfectly balance the grid's supply and demand. And, things are getting more complicated as we introduce more and more types of power like renewables.

So, properly handling time is crucial ETRM functionality, and over-thinking it is absolutely called for when trading power. 1.21 gigawatts/plutonium won't solve this time conundrum, but thoughtful coding and attention to detail will.

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Molecule is SOC 1 Type 2 and SOC 2 Type 2 Certified

We are proud to announce that Molecule has achieved SOC 1 and SOC 2 certifications, both against the more difficult Type 2 Standard.

While these certifications have given us an opportunity for showing off our design prowess,

SOC 1 and SOC 2 Type 2 Certifications for ETRM/CTRM Software

they also validate that Molecule meets or exceeds SaaS company best practices.

If you're not familiar with SOC 1 and 2 certifications, here's why this matters.

You can have peace of mind and trust Molecule because an independent auditor has reviewed our business operations.

When the American Institute of Certified Public Accountants (AICPA) created these protocols, they set benchmarks related to five areas: privacy, confidentiality, security, availability, and processing integrity.

The process to complete these certifications, especially to meet the requirements for the Type 2 designation, involved detailed questionnaires, data requests, and other inquiries.

Our auditor reviewed internal policies including cloud security and employee satisfaction. We have demonstrated, to a third-party that is an AICPA firm, that we have systems and controls in place to protect customer data. Here are some of the types of controls they look into:

  • Two-factor authentication and usage of SSO
  • Employee background checks and annual performance reviews
  • Our organizational chart, internal control matrix, and employee job descriptions
  • Performing third-party risk assessments

We worked with Tugboat Logic to facilitate these certifications, and we appreciate the support they provided our team.

When companies are trading energy, commodities, or even crypto assets, the data they share with their ETRM/CTRM software provider is highly sensitive. We strive to bake as much security into our platform as possible and update these measures frequently. This is one of the many benefits that our customers get from using a cloud-based ETRM/CTRM.

We do some wacky things to protect our customers. For example – while some of our customers are comfortable sharing their identity, we know that not everybody is. This is one of the main reasons we created our code name and mission badge system for Molecule customers. As Sameer says:

Since Day 1, we've built our platform, and our company, with integrity at its core. But, integrity can feel ethereal and difficult to prove. These certifications validate that our internal policies meet or exceed industry best practices. - Sameer Soleja, Founder & CEO, Molecule

You can learn more about Molecule's security protocols for our ETRM/CTRM software on our website.

We encourage anyone considering implementing an ETRM/CTRM to talk to software providers about their credentials. We are also happy to answer any questions you have about the Molecule platform. Feel free to reach out to us at info@molecule.io.

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Djinn - Enterprise Crypto by Molecule

Enterprise crypto trading is out in the open, but the companies who trade have to live in the shadows. Risk management processes are homegrown, and crypto transactions are wedged in systems that don’t fit them — or worse, they can’t be seen at all because they are trapped in apps on phones.

Until now.

Molecule, the leading cloud-native ETRM/CTRM system, today announces Djinn — our enterprise offering for crypto.

With Djinn, companies trading cryptocurrencies can see their risk and exposure alongside everything else they trade — electricity, other energy commodities, renewables, ags, softs, chemicals, metals, and more.

Djinn connects to exchanges like CME and Gemini to automatically download executed futures, options, spot, and storage transactions — and models them right alongside the physical and financial derivatives they relate to.

Position, P&L, and other metrics calculate instantly, and Djinn downloads market data from relevant markets. FX conversions are built-in, to support customers trading in any traditional fiat currency.

Customers using Djinn benefit from the full raft of Molecule’s enterprise risk management features, including audit trails, automatic locking, fine-grained permissions, and complex book structures — as well as the modern APIs and easy-to-use screens Molecule is known for.

With Djinn, enterprise crypto customers can expect to be up, running, and compliant in 90 days.

If you’re trading crypto and want to come out of the shadows, contact our sales team for a demo. With Djinn, your enterprise crypto wish is our command.

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Do you Interface with our FCM?

We get this question often when speaking with prospective customers. The answer? Probably – and for most users, it doesn't matter whether we do or not.

How Molecule gets exchange trades

If you trade on any of the exchanges where Molecule has FIX adapters – ICE, CME, or Nodal Exchange – Molecule gets your trades from the exchange a few seconds after they clear, full stop.

No additional interfaces are needed to get your trades in: not to your FCM, clearing broker, TT, CQG, or anything else.

What Molecule does with FCM files

Molecule connects to an ever-growing number of FCMs (13 at last count) to download their statements as a check every day. We compare what the statement says to what Molecule has from a position perspective – because that's one of the most likely places for things to go out of sync. If we get position right, it's likely everything else is in line.

Can you also reconcile trade prices and fees with my FCM?

We're working on it.

Can you tell me what my margin needs to be or reconcile cash?

That would require us to have a SPAN engine on our platform (for ICE and CME)  – and we don't have that today. With the data we collect, we can get close to reconciling cash – see more on our Knowledge Base.

Incidentally, if you know how SPAN works, and would like to help us figure it out – hit us up!

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