Solutions for Physical Commodity Trading and Risk Management

2We know commodities

Identify profitable trading opportunities and optimise your full chain of operations

To be successful in commodity markets today, you need to:

Our solutions are designed to help you achieve this and more.

Take advantage of the most comprehensive physical trading capabilities including estimation to realisation of freight, insurance and storage, logistical complexities of land, maritime and multimodal shipment flows.

Whether you trade in metals, softs or both, our solutions are designed to meet the needs of start-ups to large multinational organisations.

You can choose an front-to-back trading to physical delivery solution, or stand-alone capabilities to work with your existing IT environment hosted on premise or via the cloud.

Get up and running in weeks with pre-configured ‘quick start’ deployment to match your specific business needs.

Understand the cost per trade and when to expect revenue

Assess the impact of market risk factors on the portfolio

Know exactly what inventory you have anywhere in the world any time

Achieve cost efficiencies throughout the trading lifecycle processes

Achieve trading and accounting data transparency and auditability

Key functional areas

Trade management Profit & loss monitoring Inventory management Documentation management

Hedging & risk management Logistics management Settlement management Trade accounting2We know commodities

3We know commodities

Business benefits

We help you to maintain profitable trading net margins

Understand market risk factors and their impact on physical trades

Competently manage the full lifecycle of physical trades

Gain complete visibility of your mark-to-market positions to track the change in P&L over time

Determine which trades are likely to be the most profitable as prices change with smart hedging tools

Visualise risks in a manner which allows you to plan and react promptly including the application of limits

Measure and report on market and credit metrics to comply with your organisation’s risk policy

Capture nuances of complex physical deals, such as those involving concentrates; incorporate multiple contents into a contract and manage the associated documentation with ease

Conduct P&L analysis across multiple legal entities or trading books to explain fluctuations

Ensure inventory committed in the contract is no longer made available for other sales; you can trace the origin, any movement and its current location at a given moment

Manage inventory efficiently between suppliers, depots, silos and customers across borders; easily access all the documentation associated with tracking, delivery and collection processes in one place

Track shipments and associated transport and voyages by linking them to underlying physical contracts to avoid the risk of settlement delays and consequent payment issues

Manage logistics related costs such as inspection of inventory, transport, import and excise duties and taxes from one place

View different commodity types, statuses and balances of inventory across different locations, whether in transit or in storage, to help decide the optimal, least expensive locations from which to transport

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We help you to reduce operational risks with automated workflow

We help you be compliant with industry regulation

Reduce manual tasks across pre and post trade processes

Achieve closer collaboration between the front, mid and back office to minimise delays in trade processing

Achieve quicker sign offs on agreements by managing all your trade contracts including purchase, sales, storage and hedging in one place

Incorporate internal and external market data into calculations efficiently with Brady’s custom APIs to base trading decisions on the latest information

Automate the reconciliation process with accounting, trading and P&L data to ensure provisional and final invoices are accurately reconciled

Perform ‘checks and balances’ on your trading activities for compliance

Implement user permissions to allow different parts of the business to access relevant information

Maintain audit trails for transparency

4We know commodities

5We know commodities

Trade capture

Capture and manage of different types of purchase and sales contracts

Define flexible pricing and premium terms such as floating, unknown or formula pricing

Automatically see conversion between multiple units measure

Automate price calculation using available 3rd party market data

Perform agent and broker commissions calculations

Perform initial valuation and deal P&L analysis

Perform pricing and valuation of complex multi content contracts

Allocate hedges to underlying physical positions

Manage and report on market exposure

Produce daily pricing reports for physical and hedging contracts Manage foreign exchange exposure by capturing and linking corresponding currency exchange contracts

Perform position rolling; close the current position and open a new one quickly

Import executed trades using standard upload templates

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Key features at a glance

Risk

Set-up and monitor limits by various criteria including counterparty credit limits

Monitor and report on limit breaches

Perform mark-to-market valuations

Monitor market risk on a portfolio and contract basis

Calculate and report on foreign exchange exposure

Attain a single view of risk exposures across physical and financial transactions

Perform daily P&L analysis

Set up and manage price curves

Hedging and market exposure

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Operations and logistics

Manage a trade throughout its life cycle based on standard workflows

Match purchase contracts to sales

Capture and track movements of goods

Manage scheduling of shipments

Generate and store contractual, export/import and freight documentation

Calculate and allocate costs at various stages of the logistics flow

Manage transportation based on various incoterms including vessel chartering, inland freight planning and ordering

Implement a more efficient claims management workflow

Manage physical inventory positions and long and short forward positions

Perform inventory valuation including stock, forward and matched positions

Monitor and report warehouse positions at cut off dates across multiple locations around the world

Perform inventory splits and merges (blending) and transformation

Calculate and allocate storage, insurance and financing costs

Reliable tools to help meet internal and external processes and obligations

Implement audit trails of physical and financial transaction data by users

Restrict access to data based on user and role permissions

Easy access to trading and accounting data

Compliance

Inventory management

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Invoicing and Settlements

Accounting and Finance

Trade finance

Define flexible payment and settlement terms

Generate proforma, provisional and percentage-based invoicing

Generate goods and services invoices

Monitor payments, open invoices and unpaid balances

Manage settlement exposure by cash flow reporting and analysis

Set up and manage multiple fiscal entities and the flexible chart of accounts per fiscal entity

Automatically create and post corresponding accounting entries to the General Ledger including accruals

Automate accruals reversals

Maintain dedicated accounts receivable/payable sub-ledger

Obtain (un)realised P&L reports and conduct analysis

Perform post-transaction profitability analysis based on various factors such as by product, vessel, or location

Achieve faster and efficient financial period closing

Generate letters of credit for credit risk management

Generate or import from SWIFT files trade finance instruments such as letters of credit, bank guarantees and bid bonds

Manage amendments to letters of credit prior to issuing

Track letter of credit presentations to facilitate timely payments

Track utilisation of letters of credit and corresponding limits

Calculate financing costs of trade finance instruments

Achieve faster and efficient financial period closing

Generate letters of credit for credit risk management

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Optional extras

Choose from a selection of industry standard customisable rules to price and value concentrates and other single or multi-content contracts

Helps you to manage the chemical assay process for concentrates including determination of final assay results and generation of final exchange certificates

Helps you to manage delivery of raw, unprocessed commodity to the processor with receipt of a refined or processed product in exchange for a fee

Enables automation of processes involved in the transfer of commodities (purchase and sales) between subsidiaries of the same entity

Rules engine

Assay exchange

Tolling

Intercompany trade

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8We know commodities

Brady’s proven know-how

With over 30 years’ experience of delivering multi commodity trading, risk and logistics solutions to leading global organisations and a workforce including ex traders, technology innovators and sector specialists, you can rely on Brady’s deep expertise in commodities.

Let us help you gain a competitive edge in your trading activities today.

Brady’s solutions cover 15+ countries globally.

Each year, businesses around the world depend on Brady systems to transact trillions of USD worth of trades.

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Why businesses love working with Brady

and more...

As part of the transaction, we required a ‘greenfield’ trading and risk management system which can be deployed in an exceptionally short timeframe. Brady’s software allows up to link our physical aluminium

positions to our hedge transactions at all times. We have the reassurance that our data and assets are protected by Brady’s multi-layered security, in line with industry standards. We are confident that the team and the

solution will meet our trading and compliance needs.

- Arnaud De Weert, CEO at Aludium

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Investing in a new software platform is an important decision, which is also associated with a degree of risk. To meet the challenges we face in the complex and highly volatile markets in which we operate, we are confident

that we have sufficiently mitigated that risk by selecting a solution that can support the full requirements of the metal processing value chain.

The Brady team affords the most thorough understanding of the metals markets in the CTRM space, which coupled with its unparalleled portfolio of customer references, provides us with the proven assurance of Brady’s

capability to meet our requirements and deliver.

- Markus Meurer, Head of MMC Norilsk Nickel’s Global Sales

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Speak to a Brady Commodity Expert today and discover how our physical commodity trading software can support your business activities.

marketing@bradyplc.com

+44 20 3301 1200

www.bradyplc.com