A significant portion of the Oliver Wyman annual report on commodities trading is devoted to the central theme that commodity traders must adopt new technology enabled solutions to remain competitive. As one of the few technology offerings focused on commodities, Direct Swap was designed to provide game-changing efficiencies in the commodities space.
As commodity margins flat-line, the number of traders will shrink as existing trading firms consolidate and digital rivals emerge, U.S. consultancy Oliver Wyman said in its annual commodity trading report. Wyman sees digitization as the game-changer in the next few years that will force independent traders such as Glencore, Trafigura and Vitol, as well as the trading arms at integrated oil companies like Shell and BP, to become ever more nimble and automate many of their activities. "The first ones to adopt the new technology, like blockchain, will have a significant competitive advantage," said Roland Rechtsteiner, a partner and energy specialist at Oliver Wyman. While traditional energy sources and traders will continue for the foreseeable future, "an army of new low-cost digital contenders" is breaking into the power market.