Commodity Trading

Build metals/energy trading desk with auditable provenance and T+0–T+2 settlement via blockchain. Comprehensive physical + paper trading across copper, aluminium, nickel, oil products/LNG with optional RECs/carbon.

Physical Trading • Blockchain Settlement • Risk Management • ETRM Platform

Trading Desk Performance

Real-time KPI dashboard with comprehensive trading metrics

$125
Gross Margin per Ton
+12%
$7.6B
Annual Turnover
+28%
0.8%
VaR Breaches
-45%
1.2 days
Settlement Cycle
-60%
99.7%
Audit Trail Coverage
+15%
0.92
DSO/DPO Ratio
+8%

Operating Model

Integrated physical and paper trading operations with blockchain-enabled settlement and comprehensive risk management framework.

Physical Trading

Direct commodity procurement with integrated inspection, warehousing, and freight coordination

SGS inspection integration
Warehouse receipt management
Incoterms optimization
Quality specification compliance

Paper Trading

Financial derivatives and structured products for risk management and arbitrage opportunities

Futures/options hedging
Repo/inventory finance
LC/DLC facilitation
Spread arbitrage

Blockchain Settlement

T+0 to T+2 settlement with auditable provenance through blockchain infrastructure

On-chain trade documentation
Tokenized warehouse receipts
IoT seal integration
Oracle price feeds

Risk Management

Comprehensive risk framework covering market, credit, liquidity, and operational exposures

VaR limits monitoring
Credit limit enforcement
FOBO split controls
4-eyes verification

Trading Scope

Comprehensive coverage across base metals, energy products, and environmental commodities with specialized settlement mechanisms.

Base Metals

Copper
Aluminium
Nickel
$2.8B+
T+1 avg

Energy Products

Crude Oil
Refined Products
LNG
$3.2B+
T+0 to T+2

Environmental

RECs
Carbon Credits
$450M+
T+0 digital

Precious Metals

Gold
Silver
Platinum
$1.1B+
T+0 vault

Blockchain Settlement Layer

Revolutionary blockchain infrastructure enabling T+0 to T+2 settlement with complete audit trails, tokenized warehouse receipts, and real-time IoT integration for unprecedented transparency in commodity trading.

On-Chain Trade Documentation

Immutable smart contracts for trade execution, settlement terms, and compliance verification

Tokenized Warehouse Receipts

Digital representation of physical commodities enabling instant transfer and financing

IoT Seal Integration

Real-time cargo monitoring with tamper-evident seals and GPS tracking data

Oracle Price Feeds

Direct integration with LME/CME price data for automated settlement and mark-to-market

Blockchain Settlement Infrastructure

Technology Platform

Integrated technology stack covering ETRM, risk management, order management, and blockchain settlement with comprehensive compliance monitoring.

ETRM Platform

Energy Trading & Risk Management with real-time position monitoring

Position management
P&L attribution
Mark-to-market
Scenario analysis

Risk Engine

Advanced risk analytics with VaR calculations and stress testing

Monte Carlo VaR
Stress scenarios
Margin calculations
Exposure limits

OMS Integration

Order Management System with multi-venue execution capabilities

Smart order routing
Algo execution
FIX connectivity
Trade reporting

Blockchain Layer

Distributed ledger for trade documentation and settlement

Smart contracts
Tokenized receipts
Privacy channels
Oracle integration

Compliance & Risk Framework

Comprehensive regulatory compliance covering KYC/AML, sanctions screening, and international trade documentation standards.

KYC/AML

Enhanced due diligence and ongoing monitoring

Sanctions Screening

Real-time ABAC compliance monitoring

UCP 600/URC 522

Documentary credit compliance

Emissions Reporting

ESG compliance and carbon tracking

Risk Management Controls

Market Risk

  • VaR limits with daily monitoring
  • Futures/options hedging strategies
  • Stress testing and scenario analysis

Operational Risk

  • FOBO split controls
  • 4-eyes verification process
  • Automated margin call management

Implementation Roadmap

Phased deployment approach from trading desk setup to full-scale operations with comprehensive risk management and blockchain integration.

Phase 1: Trading Desk Setup

Establish trading infrastructure, credit lines, and core team recruitment

• ETRM platform deployment
• Credit facility establishment
• Team hiring and training
Months 0-3

Phase 2: Pilot Operations

Execute 5-10 pilot cargoes with full blockchain integration

• Blockchain settlement testing
• Partner integration
• Risk system validation
Months 3-6

Phase 3: Route Expansion

Scale operations across multiple trade routes and commodity types

• Multi-route operations
• Carbon credit integration
• Advanced analytics
Months 6-18

Partnership Network

Strategic partnerships across the entire commodity value chain ensuring seamless operations and risk mitigation.

Producers

45+

Smelters

28+

Banks

15+

Brokers

32+

Shipowners

18+

Insurers

12+

Warehouses

25+

Inspectors

8+

Commercial Model

Revenue Optimization Strategy
$125/ton
Average Gross Margin
2.8%
Spread Arbitrage
4.2%
Financing Income
1.5%
Optionality Premium

Revenue Streams

  • Spread/arbitrage opportunities
  • Optionality and volatility capture
  • Inventory financing income
  • Blockchain settlement premiums

Risk Controls

  • Capped margin call exposure
  • Dynamic credit limit adjustment
  • Automated stop-loss mechanisms
  • Diversified counterparty exposure

Launch Your Trading Desk

Partner with ChemKim to build a state-of-the-art commodity trading operation with blockchain settlement and comprehensive risk management.

Discuss Trading Opportunities