Commodity Trading Platform 101: How to solve common challenges

Whether you already have a legacy commodity trading platform in place and you feel like it consistently misses the mark or you implementing a solution for the first time, many companies struggle to find the right commodity trading platform for their organization.

Do you have a CTRM system today? Perhaps it was implemented a number of years ago and over time you have realized that it’s lacking critical functionality. Maybe your program has elaborated on this system in some ‘creative’ ways — spreadsheets, custom applications, etc. that were never fully integrated. As a result, there is a severe lack of transparency and insight into the business.
Unfortunately, many companies that we're treading water with their legacy systems felt the brutal inadequacies of this type of commodity trading platform with the disruptions of the COVID-19 struck.

Another common challenge is with commodity trading platforms that aren’t built for your specific asset/commodity. As with the previous example, extensions or other applications were added over time for additional assets since the original system was lacking or it was too expensive to add it. Once again, this really impedes real-time visibility across all of your positions and exposures. If this sounds like you, consider bringing them together into a single platform.

The last common challenge pertains to companies that don’t yet have a commodity trading platform in place. Specifically, those who have a general understanding of what CTRM systems are but struggle to justify the initial investment. If you find yourself asking how to recognize the key value of a commodity trading platform and overcoming organizational pushback including cost, complexity, and implementation timelines, there is no greater time than now to consider CTRM solutions. The changes in the risk landscape (Operational, Financial, and Organizational) have never been as dramatic, and improving visibility, need for continuity in the business has never been higher.

What is great, is that regardless of your challenge — and there are many others out there — you don’t need to look at different vendors based on approach. Focus on commodity trading platforms that leverage the power of the cloud. Solution providers, like Eka, have built a single cloud platform where you can implement and expand as needed. By supporting open integration approaches, connectivity is no longer the barrier it once was (allowing organizations to reuse what is working).

This blogpost was earlier published on the Eka1 blog

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