Middle Office Overview

What Is the Middle Office?

The Middle Office module provides Energy Trading and Risk Management (ETRM) capabilities for NEM market participants. It covers the full trade lifecycle from deal capture through to portfolio valuation and risk management, integrated with real-time market data from the Front Office.

Energy Copilot’s ETRM is built on top of the same medallion lakehouse that powers the market analytics, meaning deal positions are always evaluated against live market data — no manual data feeds or CSV imports required.

Capabilities

Deal Capture & ETRM

Capture and manage energy derivative deals: swaps, caps, floors, collars, PPAs, and spot contracts. Book assignment, counterparty management, and position tracking in real time.

Portfolio & P&L

Mark-to-market valuation using forward curves constructed from ASX energy futures. Real-time P&L attribution, position limits monitoring, and portfolio summary dashboard.

Forward Curves

ASX Energy Futures-derived forward curves for all 5 NEM regions. Seasonal shape calibration, curve smoothing, and historical curve comparison.

Risk Management

Value at Risk (Historical Simulation and Monte Carlo), credit risk exposure, market position limits, and Greeks for options and PPAs.

Trading Signals

Eight algorithmic trading signal types: momentum, mean reversion, weather-adjusted, renewable ramp, FCAS arbitrage, interconnector basis, demand shock, and time-of-day patterns.

Battery Optimisation

Optimal dispatch strategy for BESS assets: arbitrage P&L modelling, SOC management, FCAS co-optimisation, and bid stack generation.

Deal Data

Energy Copilot is pre-seeded with sample trading data to demonstrate the ETRM capabilities:

• 3 portfolios: Wholesale, Retail Hedge, FCAS
• 5 counterparties: AGL Energy, Origin Energy, EnergyAustralia, Shell Energy, Macquarie
• 50 sample trades: a mix of swaps, caps, and PPAs across all regions and tenors

Seeded by job_00_setup task seed_deal_data.

Key Gold Tables

Table	Description
gold.deals	Trade register — all captured deals
gold.portfolios	Portfolio definitions and hierarchy
gold.counterparties	Counterparty registry with credit limits
gold.positions	Aggregated positions by portfolio, region, tenor
gold.mtm_valuations	Daily MtM valuations per trade
gold.asx_futures_eod	ASX Energy futures end-of-day prices
gold.forward_curves	Constructed forward price curves

Workflow

Deal Capture
     │
     ▼
Position Netting
     │
     ├──→ Forward Curve (ASX Futures)
     │
     ▼
Mark-to-Market Valuation
     │
     ├──→ P&L Attribution
     ├──→ VaR Calculation
     └──→ Position Limit Monitoring

Integration with Front Office

The Middle Office is fully integrated with real-time Front Office data:

• Spot exposure: current spot price impacts on un-hedged positions are calculated against live 5-minute prices
• FCAS exposure: FCAS revenue/cost against live FCAS prices
• Weather risk: temperature forecasts feed into demand-correlated hedge effectiveness calculations
• Trading signals: algorithmic signals are based on live market data from the same Gold tables

API Router

The ETRM endpoints are served from the middle-office router group:

/api/deals/           # Deal CRUD operations
/api/portfolio/       # Portfolio positions and P&L
/api/forward-curves/  # Forward curve retrieval and construction
/api/risk/            # VaR, Greeks, limit monitoring
/api/trading-signals/ # Algorithmic signal retrieval
/api/battery-opt/     # Battery optimisation engine