Introduction In the introductory article the overall approach to commissioning a delivery system for a futures exchange was outlined, and at the end, it was suggested that the place to start an analysis was with the warehouse. The assumption being that the point of delivery
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
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.
Matt Dolton, founder and director at physical delivery technology specialists Kynetix commented: “The current trend for more regulation in Financial Services is often complained about, but this is one area where better understanding and improved regulation (not necessarily increased regulation) would be a good thing.
Sentinel, Kynetix’s flagship inventory management and physical delivery platform bridges the gap between the physical economy and the financial markets by creating electronic records of title, ownership and storage of commodities. This unlocks opportunities to streamline financing, collateral, settlement of derivatives contracts, post trade processes