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  • Collection of data is critical, so you need the technology

  • to collect all the data.

  • But the real crux is what you actually do with the data.

  • So the analytics part is critical.

  • And at the end of the day, what you do in trading

  • is forecasting, so predictive analytics.

  • We've always been in the predictive analytics.

  • We used human brain power in the past.

  • But clearly, more and more, you're

  • using technology to help you to make better decisions,

  • to do more predictive analytics, and at the end of the day,

  • make better trading decisions.

  • On the upstream front, (there have been) complete changes in the way you

  • drill for oil.

  • When we drill today in Argentina, for instance,

  • we send the core sample to Houston for analysis,

  • and we get a lot more information

  • that was ever available before.

  • We know where to drill and how to drill more efficiently.

  • The other part is what is happening

  • in the world of artificial intelligence.

  • We've got a lot more internal data through these systems.

  • We have a lot more external data through these systems.

  • We've got a very large increase in computer processing

  • capabilities, and obviously, the development of

  • algorithms to identify different patterns.

  • We are looking at that.

  • We have a certain team within house

  • which is then looking at certain specific ideas

  • that we have in this area.

  • And I can see this being quite an important part

  • of the trading mix.

  • We ran a test last year where we had a physical oil cargo going

  • from Africa to China.

  • And we've run the regular system with the paperwork,

  • the bill of lading, and so on and so forth,

  • and we did a parallel blockchain.

  • And the regular documents needed 40 days to get to destination.

  • Well, actually, the blockchain contract

  • managed to essentially conclude the same transaction

  • from beginning to the end in four days.

  • That will have a major impact on funding requirement

  • for a trading company and undoubtedly lower

  • the costs for the industry and make it more efficient.

  • VAKT is being set up to create a blockchain-based digital

  • platform that will really modernise the post-trade

  • completion of the commodities energy trading industry.

  • We're going to start in a few select markets

  • with the goal of bringing something to operation

  • by the end of this year.

  • From there, it can be scaled globally from 2019 and beyond.

Collection of data is critical, so you need the technology

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B1 FinancialTimes trading analytics predictive analytics drill blockchain

Commodities traders look for tech solutions

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    Rachel Kung posted on 2018/04/24
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