Scope of Processing

All trading positions (contracts) are monitored from their inception through final liquidation, providing full reporting on trading activity. Trading instruments handled by the system include:

  • physicals (spot and forwards)
  • physical inventory
  • metal concentrates
  • tolling
  • futures
  • swaps
  • options (exchange-traded or over-the-counter)
  • foreign exchange
  • commodity loans/leases

The system also tracks investment/borrowings and accrues income/expense, although these are not treated as trading instruments.

The system was designed to handle the unique physicals trading requirements such as:

  • unpriced contracts and related pricings, based on averages or specific ‘fixings’
  • provisional invoices with automatic reversal as they are finalized
  • contract price based on gross quantity or on commodity contained
  • inventory receipts and reporting and lot number tracking
  • operational tolerances (liquidation quantities different than contract quantities)

Comprehensive position reporting is provided based on single transaction entry. For example, the entry of a purchase contract immediately impacts the trading company's risk position, the customer's credit position, the trading company's cash forecast, and the traffic delivery forecast.