ING and Societe Generale Deploy Blockchain-Powered Commodities Trading
- The application of distributed ledger technology could revolutionize the commodity trade financing chain.
Global investment banks ING and Societe Generale have joined forces with Mercuria, a commodity trading house, to harness the power of Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology for live oil trading capabilities, part of the technology’s latest testing into commercial trading.
As opposed to other asset classes, commodity trading and finance are still mainly reliant on physical paper documents, which must routinely traverse the globe for Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term and settlement. Such draconian measures in 2017 represent a fine opportunity for blockchain technology to overhaul the sector, with a wide range of potential gains and streamlined measures potentially being deployed.
Efficiency Gains
In particular, a recent experiment conducted by the groups found that by making efficiency gains in certain processes, the average total time for a given bank to complete its role in the transaction could be cut from approximately three hours to just twenty-five minutes.
The application of distributed ledger technology to the commodity trade financing chain is important as it could potentially curtail several prevalent issues such as documentary fraud – the technology also can allow for the digitalization of assets.
Patrick Arnaud
According to Patrick Arnaud, Managing Director, Trade and Commodity Finance at ING, in a statement on the partnership: “The commodity finance industry is hampered by nature by inefficiencies and outdated procedures. By applying blockchain technology, we expect that we can eliminate a lot of these, making the overall process faster and more cost effective and the tests we have been able to carry out have proved this."
"The Easy Trading Connect platform allowed real-time access to information for all parties, eliminating the need for an acknowledgment process. It also keeps a full data record, which is useful for auditing and as well as having an intuitive navigation system and a well thought through design,” noted Federico Turegano, Global Head, Natural Resources and Infrastructure, Societe Generale Corporate & Investment Banking.
Global investment banks ING and Societe Generale have joined forces with Mercuria, a commodity trading house, to harness the power of Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology for live oil trading capabilities, part of the technology’s latest testing into commercial trading.
As opposed to other asset classes, commodity trading and finance are still mainly reliant on physical paper documents, which must routinely traverse the globe for Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term and settlement. Such draconian measures in 2017 represent a fine opportunity for blockchain technology to overhaul the sector, with a wide range of potential gains and streamlined measures potentially being deployed.
Efficiency Gains
In particular, a recent experiment conducted by the groups found that by making efficiency gains in certain processes, the average total time for a given bank to complete its role in the transaction could be cut from approximately three hours to just twenty-five minutes.
The application of distributed ledger technology to the commodity trade financing chain is important as it could potentially curtail several prevalent issues such as documentary fraud – the technology also can allow for the digitalization of assets.
Patrick Arnaud
According to Patrick Arnaud, Managing Director, Trade and Commodity Finance at ING, in a statement on the partnership: “The commodity finance industry is hampered by nature by inefficiencies and outdated procedures. By applying blockchain technology, we expect that we can eliminate a lot of these, making the overall process faster and more cost effective and the tests we have been able to carry out have proved this."
"The Easy Trading Connect platform allowed real-time access to information for all parties, eliminating the need for an acknowledgment process. It also keeps a full data record, which is useful for auditing and as well as having an intuitive navigation system and a well thought through design,” noted Federico Turegano, Global Head, Natural Resources and Infrastructure, Societe Generale Corporate & Investment Banking.