Introducing automation and synthetic symbols to a bullion trading company
An Asian bullion trading company that specialises in the wholesale of physical gold.
Issues and pains affecting the business
The lack of automation of the workflow creates delays and the risk of human error. When incoming requests for gold purchases come through, the trading company representative manually checks all prices, converts them to the local currency, and updates the client verbally.
The company operates in the local currency but gold (XAU) is tied with USD, which creates an inconvenience, as there is no currency pair for the local currency and the US dollar.
Details of the project:
milestones and number of people involved
Project timeline: 2 weeks
The project was straightforward due to the excellent cooperation with the client, and TFB already having a ready-made solution for the issue – synthetic symbols.
The solution was identified and proposed within the first week, followed by the rollout in the second week. The COO and the CTO represented the client side, and the TFB team consisted of the sales manager, the success manager, and the systems engineer.
Solution and specific features offered
Upon discussions with the client and a deep dive into the work process, the TFB team identified the following solutions:
Introduce automated order placement in the local currency through the NewTrader Platform.
A-book execution is to be performed with synthetic symbols and A-book hedging.
B-book execution is to be performed with synthetic symbols only.
Ask/Bid markups are to be added for synthetic symbols.
Since the project’s completion, the client has reported:
- Increased volumes secured by faster request processing and a reduced rate of lost sales due to delays.
- Improved profit forecasting accuracy since the implementation of synthetic symbols.
- Higher employee satisfaction rates influenced by the automation of the workflow.
- Securing larger deals as leads feel more comfortable working with a company that invests in automation and is quick to respond.
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