Member Article

Traders in EU string markets come together within Covantis to net positions before contract execution

Geneva, Switzerland; 17th July 2024: With global traders across South American and European markets benefitting from Covantis’ contract execution efficiency gains – and the company reporting significant success for its launch of CircleOut platform in the FOB 6 Ports sunflower oil market – Covantis is today launching in the FOB Lower Rhine rapeseed meal market in Germany.

Built to help the market move away from outdated methods to execute contracts, Covantis CircleOut helps trading firms net their positions pre-execution, by automatically identifying circles and washouts. Trading firms traditionally rely on email and phone calls, which are inefficient and error-prone, often leading to circles not being identified in time. With CircleOut, trading firms can manage all their contracts in a single place, automatically identify circles via contact-matching algorithms and resolve them, including settlement calculations.

A large network of companies active in the European string markets – including AAK International, ADM, Baywa, Bunge, Cargill, Cefetra, CFP Energy, Cofco, DLA Agro, Louis Dreyfus Company, Oliva AD, C. Thywissen, Saipol, Viterra, Remia – have adopted CircleOut and are coming together to modernise the way positions are netted and circles are identified and settled.

With over 4.5 million metric tons of circles settled and 43% efficiency gains reported by 13 trading firms active in South America string markets, in May 2024 CircleOut launched in the European FOB 6 Ports market for sunflower oil. Since then, 613,000 metric tons of position volumes have already been uploaded, with over 200,000 metric tons volumes settled. 

After its expansion in the German Lower Rhine market – where the company is aiming to replicate the same level of success as the South American and FOB 6 Port markets – Covantis will also be launching CircleOut into the FOB Dutch Mills market for rapeseed oil in the coming months.

 

This was posted in Bdaily's Members' News section by Lucy Jefferson .