Commodity Trading and 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. [Meer weten…]

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. [Meer weten…]

Admin - 11:56 | Add a comment

21.02.2019

Commodity trading disasters and how to identify them before they bite - Part 1

I thought I would start to share some of my experiences of the risk management “disasters” I have come across in  commodity trading businesses and maybe help others identify the warning signs in their own environment. I will not name people or companies but will explain clearly what was being presented and what turned out to be the, usually expensive, reality.

Commodity trading companies work on a mark-to-market basis. What that means is that as well as having realised deals which have been received or delivered and invoiced or paid, there are many deals which will only be executed in the future. [Meer weten…]

Admin - 18:21 | Add a comment

15.02.2019

Soft Commodities Forum members commit to common framework supporting transparent and traceable soy supply chains in Brazil

The Soft Commodities Forum (SCF) members, a global platform for leading soft commodities companies convened by the World Business Council for Sustainable Development (WBCSD), have committed to a common framework for reporting and monitoring progress on transparent and traceable supply chains for soy in Brazil’s Cerrado region.

The Cerrado region of Brazil plays a significant role globally for both people and nature, including climate change mitigation, biodiversity, fresh water systems, and as an economic engine for local communities as a production region for exported agricultural commodities. However, the extent and pace of native vegetation loss resulting from cattle and soy expansion in the Cerrado poses a significant threat to these social, environmental and economic values.

Ian McIntosh, CEO of Louis Dreyfus Company (LDC), one of the founding members of the SCF, states: “We are continuously seeking to rise to the challenge of feeding the world’s growing population in a sustainable manner. [Meer weten…]

Admin - 16:43 | Add a comment

E-mailen
LinkedIn