China has emerged as a dominant player in the global precious metals trade, becoming the world’s largest producer and consumer of gold. The Shanghai Gold Stock Exchange (SGE) is today the largest physical gold exchange in the world.
The combination of Chinese policies (allowing manufacturers the opportunity to increase production) and the nation’s market power in precious metals is vital for products found in transformative technologies such as electric vehicles, the latest computers and smartphones. .
Naturally, efforts are being made to open up its markets to foreign investors. Brady, in particular, continued to expand the capabilities of its metals trading CTRM “Trinity” platform to meet the changing demands and nuances of the metals trade in different regions.
Major investment in Trinity
Against this background, the latest update to Trinity, Brady’s flagship metals trading platform, contains a number of features that extend support for both precious metals trading and operations in the Asian market.
The goal of Trinity is to transform the way metals are traded, and to support more profitable hedging activities with well-controlled market risks. A recent major project has been a deployment by a multinational industry leader for its business operations in Japan, China, UK and North America. This deployment was part of a company-wide digitization program to support the transformation of their metals trading, hedging and risk management businesses.
Lower the cost of trade and increased profitability are key drivers for companies deploying Trinity. The product’s legacy is rooted in the trade-based metals trade. It is ideally suited for participants who trade a diverse range of contracts from futures, mediums, futures, options and leases, seeking end-to-end transaction management and a deep understanding of their P&L in one solution. overall single.
Organizations will also be able to generate output files to generate official VAT invoices through the Chinese state’s Golden Tax system. At the same time, they can produce offsetting documents – such as confirmations and invoices – in multiple languages, including those with extended character sets, such as Mandarin Chinese and Japanese. This ability to define a specific language for each counterparty in the platform is an exceptional advantage of the Trinity platform.
Another ‘approach’ aspect of Trinity is its pool accounting capacity. For companies that manage materiel on behalf of their clients, this functionality enables efficient accounting transfer of metal between counterparties; conversion to and from physical stock and delivery (eg Loco London, Loco Zurich).
The road map of the Trinity is driven by close collaboration with customers, some of the world’s leading manufacturers, producers and trading organizations of derivatives.
Expansion of regulations
The impact of the financial crises of years past is still felt today by participants in the metals trading. Regulations continue to multiply around the world, with detailed transaction reports required in many jurisdictions.
In addition to supporting the Golden China’s fiscal regulatory requirement, Trinity has been enhanced to help comply with the latest requirements of Dodd-Frank, EMIR, and MiFID regulations. Users generate files for submission to the Depository Trust and Clearing Corporation (DTCC) global trading repository for North America and Europe, as well as transaction files for the London Bullion Market Association (LBMA).
The Financial Conduct Authority’s (FCA’s) latest prudential reporting reform program – IFPR, due to come into force on January 1, 2022, adds additional reporting requirements. Trinity can now calculate K-NPR and K-CON factors to incorporate into these PRR and CRR reports.
These improvements to Trinity mean customers no longer have to worry about being compliant, as the platform helps do just that, making complex transactions easy to report across the globe.
Product Director, Commodities Portfolio, Brady Technologies
To learn more about Brady Trinity, a proven and reliable front-to-back CTRM solution for multi-entity metal hedging and risk management, please contact us using the form below:
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Brady Trinity Accelerates Digitization of APAC Metals Trading