Life after the commodities boom

Data is one of the world’s most precious commodities. And companies dealing in commodities are facing ever complex data sets, more regulations, tighter trading timelines and depressed markets. Those left in the market need to increase profit margins. Maybe, just maybe, data holds the answer.

Commodities firms need to make rapid changes, create new strategies and new solutions. The challenges are complex and multi-layered. For one disparate systems complicate how trades are captured and transactions are managed. Multiple geographies, different commodities on multiple systems across execution venues add more layers. Existing trading systems offer little room for flexibility and integration. Getting data in becomes as difficult as getting data out. Working through trading issues against tight deadlines means deals start to get missed.

Even when things are running smoothly, most of the data fed through the system can’t be traced. If a trade is amended at an exchange, it’s only identified when statements are produced. Trying to piece together information through different systems and venues means poorly managed positions and capital inefficiencies.

So how can data provide an answer? By centralising the information and putting the data in one place for all transactions across all platforms. A central transaction hub collects all the trades and integrates to execution venues. This provides full lineage from start to finish. Whether it’s conducting cross business analysis, normalising data or meeting compliance requirements, this evolving market needs to ensure it has the golden ticket to keep businesses afloat.