Commodity Trading & Risk Management

CTRM Blog


16.04.2019

Have you wondered about Blockchain? - The future is immutable.

I just wanted to write a quick overview of what it offers, where we are today and where it looks like going.
 
As there is a strong belief in the future widespread and mainstream adoption of blockchain technology, it is certainly worth investigating.
 
In the next 5 years this technology is likely to see something of a renaissance with early adopters gaining solid first user advantage with significant efficiency and cost benefits.
 
The current best use cases are;

- Consumer delivery (track and trace), consumer payments and loyalty point schemes
- Digital advertising (see basicattentiontoken.org)
- Business to business payments and connected transaction services
- Stolen product retrieval and counterfeit product identification
- Targeted product recall
- Connected supply-chain traceability (see vakt.com) and proof of sustainability
 
What are the features of blockchain. [Read More…]

Admin - 11:11 | 3 comments

29.03.2019

Transparency & Control

Here is a document put together for a recent round table meeting. It outlines recommended risk controls for commodity trading businesses. It focusses largely on trade process but every item is a direct result of real problems that occurred because a certain control was missing. If you found this relevant and would like further explanation or expansion in other areas then get in contact. 

A presentation document:
Commodity Risk Round Table March2019.pptx

Admin - 14:33 | Add a comment

12.03.2019

Rogue Trader No. 1 - There have been a few

One ordinary day, I returned from a nice lunch in the summer sun to find a senior trader waiting beside my office. He looked a bit guilty.

He explained to me that he had been incorrectly marking his forward prices on certain purchase contracts to hide a loss. He insisted that he had been in a “living hell” for a while, since his position moved against him, and was “so sorry” that now, this would not only effect his future badly but also the reputation of my risk department. [Read More…]

Admin - 11:56 | Add a comment

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