How to bring commodity finance into the twenty-first century
Commodity financing and trading has faced a whirlwind 12 months, from a spate of high-profile fraud scandals across Asia, to the closure of LME’s ‘The Ring’, the industry has undergone intense change.
The common theme driving this change has been the industry’s reliance on manual, paper-based processes and a reluctance to embrace technology. COVID-19 may have closed ‘The Ring’, though this was long overdue for a physical trading environment that seems archaic when compared with other industries.
In Asia, it was the multiple instances of fraud across commodity financing at the end of last year which shone a light on just how needed reform was.