How are challenges facing the commodity markets affecting the IT sector?
The commodities domain encompasses a product set that is fragmented by asset class: base metals, precious metals, oil and refined products, gas, power, agricultural commodities and softs. The key differentiating fact is commodities are transacted for physical delivery as well as financially. This brings with it added layers of complexity associated with the physical characteristics of the products, and the logistics associated with moving them from one place to another. Furthermore, each class brings with it an idiosyncratic set of market standards and trading conventions.
Overlaying this, there are different industry sectors and participants: suppliers, consumers, intermediaries that make markets or take positions, as well as investors. Each player has different needs and services, from systems that track physical inventories in warehouses to those that oversee large investment portfolios and need the best possible risk management.