Commodity Trading and Risk Software
5 stars based on
As volatile commodity prices continue to dominate the market, the need for technologies to manage contracts and risks commodity trading and risk management software growing.
Perhaps a decade or so ago, the use of IT in managing trading and risk exposures by commodity trading houses was limited to email and spreadsheets. Contracts were recorded by hand in trade journals, and shipments were managed through cumbersome contract files filled with trade documentation.
It was around this time that JustCommodity Software Solutions was established to comprehensively address the needs of commodity trading houses.
The Singapore-based technology company developed a proprietary software solution originally intended for the edible oils market. The company has seen stellar growth sinceachieving a compounded annual growth rate commodity trading and risk management software As the company grew, its product evolved into a flexible and user-friendly system which is able to support the trading of multiple commodities across various commodity exchanges. Just like a living organism, the collective wisdom of more than 10 years of software development in consultation with industry leaders has allowed the best trade practices to be incorporated into the system.
Traditionally, the use of advanced software to manage trades has been the domain of large trading companies, which have the spending power and need to purchase such systems in commodity trading and risk management software to manage their risk exposures — particularly in the energy market. Since the commodities boom in the last decade up toas emerging markets began demanding more raw materials, the rise in prices highlighted the need to better manage risk exposures.
There is a technology gap between regions, with the Asian soft commodity sector — which is comprised mostly of family-run businesses — notably behind. However, a contributing factor to growth in the region is commodity trading and risk management software control of business is being handed down to the younger, more technology-savvy generation of businesspeople.
Other factors that dampened the demand in Asia include the relative strength of the US dollar and the euro to most Asian currencies — most proposals are quoted in either US dollars or euros — and the relatively stable commodity prices of yesteryear. Also, as the commodities sector becomes more and more lucrative, there has been a growing trend for corporate institutions to diversify into commodity markets by buying up plantation space.
As investors, these corporations will search for a measure of control, protection and visibility for their investments. Korean conglomerates like LG and Samsung Group, for example, have reportedly purchased palm oil plantations in Indonesia and Africa to support biofuel production. The system provides a secure, password-protected login which can be accessed through a VPN connection, providing decision-makers with access to live, up-to-date information at any time.
JustCommodity has a tradition of innovation and excellence. It incorporated a direct electronic reporting mechanism for its Malaysian clients to the Malaysian Palm Oil Board, the government body that collates economic statistics and deals with the overall regulation of the Malaysian palm oil industry.
The benefit from this single reporting enhancement was immediately evident, as the time needed to produce this report was reduced from two onerous days to mere seconds. While most CTRM systems offer some commodity trading and risk management software ledger and accounting capabilities, the accounting function is typically handled by an accounting system through integration between the software suites.
The understanding is that traditional enterprise resource planning ERP solutions are not intrinsically built to handle the nuances and complications of managing a large volume of physical and futures trades. Both commodity trading and risk management software systems working in harmony ensures the best results: What the finance users of a company can expect is the accuracy of data being communicated between systems, as well as the easily tracked audit trail recorded by the CTRM system. The various operational processes, trade commodity trading and risk management software, reporting structures and security levels can gradually be developed by an ERP vendor.
However, without the domain knowledge of trading and risk management, commodity trading and risk management software is akin to constructing a house of cards.
The man-hours and financial costs involved in documenting and building such customisations to a traditional ERP system are herculean. Engaging external consultants, who may have the technical know-how to work on these projects, comes at a high price.
Some companies that have embarked on internal CTRM was sind binar optionen wikipedia have been in development for more than 48 months without a usable product in sight.
Internally developed software suites, which JustCommodity consultants have seen and consistently replaced, are often lacking in features or flexibility which are easily met by its standard software package.
JustCommodity has worked closely with its clients, consulting on business process improvement, technology infrastructure and system integration. Just as each business faces its own unique set of challenges and customer requirements are constantly evolving, the software specialist provides a flexible platform that is scalable and grows with the needs of its users.
After all, in the complex world of commodity trading, technology should be there to make commodity trading simple. Software solutions for commodity trading and risk management As volatile commodity prices continue to dominate the market, the need for technologies to manage contracts and risks is growing. Previous article Looking for the next Infosys. Cutting through the data jungle with Infinox How to invest smartly in the cryptocurrency boom Capital.