Trading Complex Products
Complex products tend to be non-standardized and involve complicated trade negotiations involving more than simply location and time of delivery.
Quality attributes may be defined by the product itself, the counterparties buying or selling it, the environmental impact of the product, and more. The introduction of quality attributes into the negotiation generally steers these products away from efficient negotiation mechanisms and fair trade.
At Neutral we believe that, with the right tools, complex products can evolve into liquid, efficient commodity markets for all stakeholders.
Encouraging Market Evolution
The means and methods of trading for every product are unique and develop in diverse ways over different time horizons. The function of the market is shaped by a number of factors including the participants, the unique attributes of the product itself, the risk profiles and the number and type of obstacles that add friction to the trading process.
At Neutral we take all these factors into consideration when designing a trading solution for you, your company, and the entire industry. Our goal is to work with our clients to develop and operate the market infrastructure that optimizes trading today and nudges it toward a more efficient future.
Building Market Tools to Overcome Trading Obstacles
By far, most markets for goods are dark, inefficient, and resist commoditization and the development of liquidity. Left unsupported by market infrastructure, they tend to face tremendous friction in evolution and grow at a slow, organic pace leaving participants with higher risks and lower returns. This inertia can be overcome with the right market design, the right set of tools, and market participants who are eager to see their product and industry grow.
We can help.
Our Fully-Customizable Trading Solution for Complex Product and Commodity Markets
Central Venue - Apply Trading Rules, Ensure Fair and Orderly Markets, Aggregate Order and Trade Flow
Digitize Complex Products - Define Complex Trading Attributes into Digital Specifications for Standardized Online Trade
Structured Workflows - Originate, Negotiate, Execute, Confirm in an Organized and Efficient Process that You Design
Create Your Marketplace - Develop Your Own Virtual Workspaces within Neutral Trade to Optimize Your Trading Objectives
Trading Formats - Choose from Existing Negotiation Formats (Bid-Ask, Auction, RFQ) or Design Your Own
Managed Access and Transparency - Define the Participation and Level of Transparency for Each of Your Markets, or Support Fully Transparent, Open-Access Markets to Promote Your Product or Commodity
Streamlining the Transaction Life Cycle
The life of a transaction is an assembly line of processes and systems that require collaboration not only between the buyer and seller, but between many third parties along the way. The longer the life of the trade and the more parties involved, the higher the risks and costs to the counter-parties. Too often the key life cycle functions for buyers and sellers span across multiple internal and external systems and fail to communicate between each other. We believe that the most efficient way to coordinate these processes is to connect everything related to the trade back to the trade and carry it from the first idea of the trade through to final delivery, payment and settlement.
Streamlining this process is to the benefit of all stakeholders. We can help you get there.
