Harry Knott says that Brady has been very active in metals and heavily involved in industrial customer projects with a focus on precious metals in recent months, particularly metals like Platinum, Palladium, Gold, Silver and Rhodium. “Precious metals trading is really interesting. There are aspects that are like other commodities, but a lot that’s completely different – and in some respects there’s more similarity between precious metals and FX than commodities because they are managed more like currencies,” he said. “Of course, there are properties and features to metals that are specific to a physical commodity like grade and location but maintaining unallocated metal balances does have similarities with currencies too.” He provided a couple of examples including leasing, where essentially the metal is leased to a third party who will return it later with interest. According to Harry, the CTRM-related market activity is often at larger metals-related businesses that operate in any part of the supply chain such as producers and industrials. Some of these companies can get by with a generic CTRM system supplemented with spreadsheets. Industrial production and manufacturing business units will typically be using a large ERP system and companies that are mainly involved in forwards… continue reading
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