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Enhance Diligence and Risk Governance to Prevent Unwanted Losses

Commodities Operations Support

Commodities trading is the buying and selling of financial commodities (using derivatives where the underlying is the price of commodities) or physical commodities which include Agricultural products, livestock, energy, precious metals, base metals, freight and emissions.

Operations support for commodities include reviewing confirmations sent by the counterparty to ensure that the details of the trade in the confirmation matches with the trade details on the client’s system, verification of settlement amount, settlement date and the banking instructions, reconciliation of trade details booked in the system for physical oil trades against the information provided by the terminals where the oil is stored.

Challenges

  • Temporary staffing challenges as activities are time bound and need to be completed by the first two weeks of the month
  • Visual reconciliation of confirmations increases probability of making errors while reconciling confirmations against the system
  • Possibility of erroneous data being sent to incorrect counterparty while verifying the settlements details

Solutions

  • The eClerx developed reconciliation  tool enables the automation of the reconciliation of confirmations, giving the client greater control on the reconciliation process
  • Auto-sending settlement vouchers to approved email addresses mapped to counterparties to reduce the possibility of errors and misdirected emails
  • Cross training with processes that have a monthly target to complete processes active for the first two weeks of the month

Benefits

  • Temp staffing flexibility provided by eClerx with transaction based contracts provides client independence with respect to managing temp staff, cross training and resource utilization, and optimization
  • Metrics and MI to enhance the ability of ‘Schedulers’ to send movements on physical commodities accurately and on time
  • IT widgets and software builds such as email automation and reconciliation tools aid in adding controls and reducing manual touch points