From Zero to a Billion Transactions in Weeks with New Trade & Risk Apps

EKA > From Zero to a Billion Transactions in Weeks with New Trade & Risk Apps
Nov 08, 2018

From Zero to a Billion Transactions in Weeks with New Trade & Risk Apps

Background:

In 2017, a large global commodities trading firm was setting up grain trading operations in Europe. They wanted operations fully functional before the next harvest season. They were expecting a billion transactions during the harvest and needed a robust trading operation to help them capitalize on this opportunity and stay future-ready.

 

Business Challenge:

By the time the company set up a team and formalized their strategy, they had only six months left to implement their trading operations. This was going to be difficult. Their trading operations would cover multiple locations across three geographies and all locations had to go live at the same time.

 

A typical CTRM system designed to fit their needs would require a high degree of customization and 12 months or more to go live. The company knew that highly customised CTRM implementations often go wrong, requiring more time to fix.

 

Temporary solutions were not an option. The trading firm didn’t want to implement something that was ‘good enough’ today knowing they would have to update it tomorrow. They wanted a robust solution that they could depend on to meet their future business goals as well.

 

Business Solution:

Having implemented Eka’s solution with good results in the past, the trading firm was familiar with Eka. They invited Eka to demonstrate Eka’s Digital Commodity Management (CM) Platform, a system that is both robust and easy to implement. Eka’s Digital CM has the functionality they needed with the option to go live before the harvest season in Europe.

 

Unlike other CTRM solutions, Eka’s app-like structure allowed them to choose just the solutions they needed so they could go live faster and add more when they scale their business. They decided to implement Eka’s TRM (Trading and Risk Management) solution that included apps on Physical Trades, Derivatives, Accounting, Logistics and Inventory. Additionally, they implemented Eka’s apps on Position and Mark-to-market, P&L Explained and VAR.

 

Eka’s Digital CM Platform is a 95% “out of the box” solution with pre-configured apps that required minimal investment of time and effort from the company. They chose Eka in December 2017 and were live by May 2018. They had a brand-new trading system in time for the June harvest.

 

Business Benefits:

  • On time implementation: It was crucial for the trading firm to go live with their trading operation before the harvest season hit Europe. Eka’s powerful and nimble solution in the form of ‘plug-n-play’ apps was pre-configured with workflows relevant to their trading operations, allowing them to go live in 16 weeks.

 

  • Delivering cost savings: Eka’s Digital CM Platform is designed to let businesses build their own suite of solutions by choosing exactly the functionality they need, thus reducing implementation costs. The company implemented a robust and a matured CTRM solution with additional solutions at the fraction of the cost of a traditional CTRM system.

 

  • Flex-with-market – Commodity markets keep evolving, and the company wanted its trading operations to stay agile. Eka provided the trading firm with a dynamic trading solution that helps them keep up with frequent market changes and empowers them to make better decisions, faster.  Eka’s Digital CM Platform also enables them to add any number of solutions they want in a matter of weeks, helping them to respond to market opportunities faster.