Adjoint makes commodities and energy smarter.

Commodities & Energy Trading Solutions

Trading Operations: The Paradox of Cost Reduction

Energy, Metals and Agricultural Commodity trading organizations have never experienced the Paradox of Cost like they do today. On the one hand, they are under intense pressure to increase their operating margins. On the other hand, they feel the burden of rising complexity and new types of risks, e.g. cyber. Their systems have to handle more volume at lower cost, but also handle more complexity, reduce operational risks and improve information security.

A large amount of investment has been made in technology systems, but often in silos. For example, when it comes to clearing and settling bilateral trades, there is still duplicative efforts to reconcile data internally and with counterparties, coupled with slow manual processes, high risk of errors, inefficient use of balance sheet and higher cost of capital, all leading to a higher cost per trade.

Efficient multi-party workflow is needed to to achieve a higher ROI from legacy technology investments.

Adjoint makes commodities and energy smarter.™

Adjoint’s product for Commodities and Energy creates new levels of market efficiency through use of open-source, decentralised, private infrastructure. Our solution leverages blockchain technology and offers industry-standard library of deals (“smart contracts”). These allow market players to innovate and compete in efficient markets. Our solutions use leading edge privacy and security methods to reduce cyber risk to critical infrastructure.

Industry participants record transactions with their private counterparties with the help of smart contracts to automate the post-trade workflow. Deal confirmation, risk monitoring, margining, interim and final settlements creation are all automated in this way. A single source of truth is shared between the counterparties, without lots of data stores to maintain, secure and reconcile. Clearly costs are reduced through this.

Our product covers financial and physical settlement through digitisation of delivery documents in dry and liquid bulk, and integration with power and gas settlement networks. Provenance and integrity in ownership of assets is always maintained.

Innovative structured financing solutions for advance payments, inventory and accounts receivables are incorporated into the smart contracts to support growth, enabling capital to flow to new areas.

BENEFITS:

Increased Margin

  • More volume at lower cost
  • Easier settlement and accounting
  • No month-end reconciliations, fewer disputes

Increased Security

  • Control of cash, credit and working capital
  • Eliminatefaxes and emails
  • Secure tamper-proof data

Increased Capital Efficiency

  • Alternative methods of financing with high security
  • Manage seasonality

Applications

Post Trade

  • Back-office clearing and settlement for financially and physically settled deals

  • Client service portals with private data access

Digitization

  • Trading and financing of digitized barge receipts, Bills of Lading

  • Integration with power & gas settlement infrastructure

Financing

  • Structured Finance

Curious how Adjoint can make your business smarter?

 

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