Metals Trading Software

Openlink provides comprehensive stress testing capabilities that allow testing of the impact of scenarios, such as a quarter-point change in overnight lending rates, on the profitability of the portfolio over time. An Openlink solution also supports the management of the instruments required to hedge likely exposures – factors such as interest rate swaps, Interest Rate futures and FRAs, right out of the box. Openlink provides extensive functionality for capturing and evaluating optionality in contracts. Our solution covers both physical contracts and financial derivatives, including swaps and exotic options like concentrates, so you get an aggregated view of positions, risk and P&L in a single solution with drill-down to the transaction level at the click of a mouse. Users can decompose exposure from more complex physical products such as concentrates, scrap and alloys into their constituent products and compare against the relevant derivatives. Openlink delivers an in-memory database for fast storage and retrieval of massive data amounts; can scale as transaction volumes grow and provides aggregated real-time position reporting to keep pace with even the largest trading operations.

Regulatory and macro-economic changes have introduced considerable volatility into metals markets, bringing metals trading software and logistics management back to the forefront for metals producers, traders and end users. Increased exposure and risk caused by foreign exchange and interest rate fluctuations are also key challenges. Low interest rates and quantitative easing (QE) policies of have made the carry trade in metals highly attractive for banks and trading firms. But profit from carry trades in base metals depends on the fairly thin margin achieved between the cost of capital and metals storage charges on the one hand and the gradually appreciating price of the metal concerned on the other. Producers face many operational burdens across their business, especially when dealing with multiple pricing components and quotational periods. However, trading systems currently in use by many companies don’t have the functionality to provide producers with insight into how to provide traders and end-users with guidance on how to best work with them. A number of market participants now have global operations with large inventories and logistics operations, creating an added layer of complexity in managing risk. Large volumes of on and off exchange warrants can create operational nightmares. The impact of changes in the macro environment on carry trades- Low interest rates and quantitative easing (QE) policies of have made the carry trade in metals highly attractive for banks and trading firms. But profit from carry trades in base metals depends on the fairly thin margin achieved between the cost of capital and metals storage charges on the one hand and the gradually appreciating price of the metal concerned on the other. Optimize the pricing and use of contract optionality for complex transactions- Producers face many operational burdens across their business, especially when dealing with multiple pricing components and quotational periods. However, trading systems currently in use by many companies don’t have the functionality to provide producers with insight into how to provide traders and end-users with guidance on how to best work with them. Global physical exposure and warrant management- A number of market participants now have global operations with large inventories and logistics operations, creating an added layer of complexity in managing risk. Large volumes of on and off exchange warrants can create operational nightmares.

Openlink brings together physical and financial transactions with support for complex derivatives and structured products. Comprehensive global forecasting, logistics and inventory management are built-in, enabling you to optimize positions and manage risk exposure using a single integrated solution. This eliminates much of the manual reconciliation work typically required in trading operations, and businesses gets more timely and accurate information for decision making. We provides comprehensive stress testing capabilities that allow testing of the impact of scenarios, such as a quarter-point change in overnight lending rates, on the profitability of the portfolio over time. Our solution also supports the management of the instruments required to hedge likely exposures – factors such as interest rate swaps, Interest Rate futures and FRAs, right out of the box. We provides extensive functionality for capturing and evaluating optionality in contracts. The solution uses projected market data to provide a present value for each option – allowing producers to price it correctly. As an end user, the system automatically recommends the best use of the optionality available (how and when to exercise it) based on forward-looking prices. We delivers an in-memory database for fast storage and retrieval of massive data amounts; can scale as transaction volumes grow and provides aggregated real-time position reporting to keep pace with even the largest trading operations. Openlink provides comprehensive stress testing capabilities that allow testing of the impact of scenarios, such as a quarter-point change in overnight lending rates, on the profitability of the portfolio over time. An Openlink solution also supports the management of the instruments required to hedge likely exposures – factors such as interest rate swaps, Interest Rate futures and FRAs, right out of the box. Openlink provides extensive functionality for capturing and evaluating optionality in contracts. The solution uses projected market data to provide a present value for each option – allowing producers to price it correctly. As an end user, the system automatically recommends the best use of the optionality available (how and when to exercise it) based on forward-looking prices. Openlink delivers an in-memory database for fast storage and retrieval of massive data amounts; can scale as transaction volumes grow and provides aggregated real-time position reporting to keep pace with even the largest trading operations.