Introduction This is the first in a short series of articles aimed at exploring the issues faced by those commissioning a system to automate physical deliveries in the international commodity trade-market; i.e. to provide a trusted, secure system which is based on a legally binding
Physical commodities have traditionally been traded in bilateral over-the-counter (OTC) deals or through brokers. But these opaque OTC trades are set to be replaced by exchange-based trades in a bid to improve transparency for market participants and help increase market liquidity. The predominance of OTC
One particular trend we’re seeing increasing activity in is that of emerging economies who produce specific commodities looking at ways to ‘reclaim’ some of the ‘value add’ that occurs around the commodities supply chain which today benefits the large, international infrastructure providers. Many commodities in
“Over the last 12 months, we have seen a significant trend across commodity market participants to move closer towards the physical economy. We’re committed to investing in our vision to connect the financial and physical markets and are excited to extend our commercial and technical
An increasing focus on moving opaque OTC business into a more transparent approach has started to impact the commodities world. For example, in India, a long troubled market, the relatively new regulator SEBI has started addressing the complex historic situation there around physical markets.
With prices falling almost 70% in the last five years, the natural rubber market finds itself at a crossroads. There are a number of ways the market could turn, but one thing is certain – things can’t continue as they are. To help stabilise prices,
Kynetix has unique experience providing inventory and physical delivery platforms to global commodity exchanges such as the LME and the Intercontinental Exchange whose respective LMEsword, LMEshield and ICE Guardian platforms underpin the global trade and financing of base metals, coffee, cocoa, sugar, wheat and gold.