The era of digital trading: New technologies to transform trading landscape

Commodity trading is no revolutionary activity; yet, the introduction of digital technologies over the last few years has enabled the development of a new environment and advanced practices, better aligned to meet the objectives of traders and investors.

Estimates show that about $10 trillion worth of commodities are produced and consumed per annum globally. Each of these commodities completes its cycle along the supply chain, but until now it had not been possible to integrate and exchange information between them.

The convenience and speed brought by the digitisation of trading opens the commodities markets to new classes of investors, with the need for more transparent and efficient commodity trading practices being addressed through open-sourced technologies. The very same disruptive technologies which are being deployed in various other industries, particularly prominent in fintech, can also make trading a more efficient and reliable undertaking.

The digitisation of trading includes the implementation of tech features into systems to allow better performance, as well as initiating a shift in the structure of assets themselves: digital assets are increasingly popular and comparable to traditional equity stocks, with the advantage of being more user-friendly and accessible.

If on one hand, digital assets are democratising the market, the digital tools within their structure help with understanding and processing of the cycles and behaviours of commodities trading, allowing for better informed decisions and improved risk management. They also provide closer estimates and predictions about demand, markets swings and external sentiment.

The rise of Digital & Tokenised Securities

The new year started on full steam around tokenised securities, with the recent launch of a trading platform by DX.Exchange that allows investors to buy the security tokens of popular Nasdaq-listed companies, such as Apple, Tesla, Facebook and Netflix.

“By tokenizing stocks of some of the biggest publicly-traded companies like Google, Amazon, Facebook and more, we are opening an untapped market of millions of old and new traders around the globe cutting out the middleman,” said Amedeo Moscato, DX’s chief operating officer to CNBC.

The important difference is that STOs are asset-backed and fall within regulatory parameters, working similarly to the way IPOs do in the equities market. Therefore, security tokens are naturally less susceptible to market volatility and offer better security to both investors and companies.

With tokenised securities, tokens can be transacted on a global scale, allowing borderless transactions 24/7 anywhere in the world regardless of business hours and time zones, even outside market hours. Thus, tokens are bound to become increasingly popular and regulatory frameworks should continue addressing them more fully.

Usually stored in smartphone-based digital wallets, tokens are secure and immutable, representing a more attractive alternative to the old environment of the stock market.

These digital assets are supported by the integration of other technology intrinsic to market and trading mechanisms, especially artificial intelligence, blockchain and biodata.

● The terms Artificial intelligence and machine learning represent computer software that learns automatically through patterns in stored data. The implementation of AI algorithms into trading systems generates improved responses through a predetermined logic, which leads to more accurate results and reduced costs and losses.

● In the realms of both physical commodities or digital assets, Blockchain is a useful technology as it allows storage and transactions to be optimised. More than enabling cryptocurrencies and tokens, because of its decentralisation, automated data and strong security framework, blockchain is an ideal underlying structural technology for new trading platforms .

● Some innovative mechanisms are working beyond the trading machinery to improve activity at human level as well. Platforms such as NeuroTrader harness biodata and AI within a platform designed to optimise trader performance. Based on studies around trader behaviour, the platform uses neuro and psychological information to stipulate the best trading decisions. The purpose is to create an advanced risk-management tool for professional traders and mitigate losses.

“The new generation of digital technologies like AI, blockchain and Big Data, are very versatile.They can be deployed to various ends to meet different needs across virtually all industries. In the case of trading, these new tools add value to investor experience and nurture a more transparent and open environment,” says Stefania Barbaglio, Director at Cassiopeia Services.

The era of digital trading: New technologies to transform trading landscape

Commodity trading is no revolutionary activity; yet, the introduction of digital technologies over the last few years has enabled the development of a new environment and advanced practices, better aligned to meet the objectives of traders and investors.

Estimates show that about $10 trillion worth of commodities are produced and consumed per annum globally. Each of these commodities completes its cycle along the supply chain, but until now it had not been possible to integrate and exchange information between them.

The convenience and speed brought by the digitisation of trading opens the commodities markets to new classes of investors, with the need for more transparent and efficient commodity trading practices being addressed through open-sourced technologies. The very same disruptive technologies which are being deployed in various other industries, particularly prominent in fintech, can also make trading a more efficient and reliable undertaking.

The digitisation of trading includes the implementation of tech features into systems to allow better performance, as well as initiating a shift in the structure of assets themselves: digital assets are increasingly popular and comparable to traditional equity stocks, with the advantage of being more user-friendly and accessible.

If on one hand, digital assets are democratising the market, the digital tools within their structure help with understanding and processing of the cycles and behaviours of commodities trading, allowing for better informed decisions and improved risk management. They also provide closer estimates and predictions about demand, markets swings and external sentiment.

The rise of Digital & Tokenised Securities

The new year started on full steam around tokenised securities, with the recent launch of a trading platform by DX.Exchange that allows investors to buy the security tokens of popular Nasdaq-listed companies, such as Apple, Tesla, Facebook and Netflix.

“By tokenizing stocks of some of the biggest publicly-traded companies like Google, Amazon, Facebook and more, we are opening an untapped market of millions of old and new traders around the globe cutting out the middleman,” said Amedeo Moscato, DX’s chief operating officer to CNBC.

The important difference is that STOs are asset-backed and fall within regulatory parameters, working similarly to the way IPOs do in the equities market. Therefore, security tokens are naturally less susceptible to market volatility and offer better security to both investors and companies.

With tokenised securities, tokens can be transacted on a global scale, allowing borderless transactions 24/7 anywhere in the world regardless of business hours and time zones, even outside market hours. Thus, tokens are bound to become increasingly popular and regulatory frameworks should continue addressing them more fully.

Usually stored in smartphone-based digital wallets, tokens are secure and immutable, representing a more attractive alternative to the old environment of the stock market.

These digital assets are supported by the integration of other technology intrinsic to market and trading mechanisms, especially artificial intelligence, blockchain and biodata.

● The terms Artificial intelligence and machine learning represent computer software that learns automatically through patterns in stored data. The implementation of AI algorithms into trading systems generates improved responses through a predetermined logic, which leads to more accurate results and reduced costs and losses.

● In the realms of both physical commodities or digital assets, Blockchain is a useful technology as it allows storage and transactions to be optimised. More than enabling cryptocurrencies and tokens, because of its decentralisation, automated data and strong security framework, blockchain is an ideal underlying structural technology for new trading platforms .

● Some innovative mechanisms are working beyond the trading machinery to improve activity at human level as well. Platforms such as NeuroTrader harness biodata and AI within a platform designed to optimise trader performance. Based on studies around trader behaviour, the platform uses neuro and psychological information to stipulate the best trading decisions. The purpose is to create an advanced risk-management tool for professional traders and mitigate losses.

“The new generation of digital technologies like AI, blockchain and Big Data, are very versatile.They can be deployed to various ends to meet different needs across virtually all industries. In the case of trading, these new tools add value to investor experience and nurture a more transparent and open environment,” says Stefania Barbaglio, Director at Cassiopeia Services.

Alternative Assets Class: Bear market mood leaves investors seeking more stable options

Equity markets took a dramatic plunge last week. On Friday 26th, global markets recorded their longest losing streak since May 2013 . The MSCI all-country world index, tracking stock markets in 47 developed and emerging countries, closed down 3.7% on Friday.

Despite slight gains over the last couple of days, global markets were still down more than eight per cent for the month. Concerns over Brexit negotiations, as well as the dispute between the Italian government and the EU over the country’s budget, have impacted the markets negatively.

In fact, indexes have been oscillating since 2016 after the Brexit vote and the election of Donald Trump in the US led to trade wars and political tensions. These factors have been shaking up the market mood more severely, having direct impact over stocks around the globe.

Equity shareholders are therefore gearing up to take their investments into other areas. But where? The sentiment is no more positive in the crypto sphere. Aside from its typical volatility, the crypto market started the week low and showed no significant bounce.

The cryptocurrency market peaked last year when the price of Bitcoin skyrocketed, reaching $19,000, and the crypto market cap nudged $700 billion. Since then, the Bitcoin price has crashed over 50%, with an ensuing 56% decline of the crypto market cap to $209 billion.

The search for investment options that are less reactive to political environment and market volatility, and safer than cryptocurrencies, opens the way for new forms of bond designed to resist market pressure and provide returns even in adverse circumstances.

Such options may sound unconventional, but they represent a favourable alternative, as well as being a good portfolio diversifier. According to asset managers, they can act as another source of income generation, potential capital appreciation and good balance of volatility.

Stefania Barbaglio, Director at IR firm Cassiopeia Services, which works closely with investors, commented: “Investors are very concerned about the recent market downturn and whether it represents an opportunity to buy, or rather is a warning of a further crash in light of Trump’s policies and the approach of Brexit."

"Some investors are switching to the crypto market and ICOs, where the worst seems to have passed and there is still opportunity to make money in an unregulated booming market; while others are playing on long-term market fundamentals such as uranium upturn or are trying to identify stocks that withstand this volatility. Quite a few are selling and cashing up and waiting for the right investment opportunity.”

Essentially, it is all about a diversified and balanced investment portfolio, powered by thorough and savvy research. Sometimes it is not about how much money you have to invest, but how smart your investment strategy is.

Alternative Assets: Attractive investment option in a bear market

Life settlements is a fragmented, niche sector not on the radar of the standard investor, but it should be. These assets are opening a new door for life insurance buyers and sellers. As birth rates go down and life expectancy keeps increasing, life settlements represent a growing asset group and an investment option suited for investors looking towards assets with less volatility and market sensitivity.

London-listed innovative alternative asset specialist Alpha Growth plc, (LSE: ALGW) is one of the best positioned companies in this sector. The company has great prospects and excellent growth opportunities through acquisitions of complementary and supplementary service providers. Alpha is planning expansion of the business with organic growth, particularly in Europe and internationally. The business started in the US, but Alpha is seeking to grow in the European, Asian and international markets.

Alpha Growth is a financial advisory business providing specialist consultancy, advisory and supplementary services to institutional and qualified investors globally in the multibillion dollar market of longevity assets. With solid experience in the North American market, as well as a global footprint, Alpha is looking to explore young markets. Life settlement markets in Europe, Asia and non-US territories are still immature, but with a growing number of investors, offer great scope for growth and returns.

Since listing on the London Market in December last year, Alpha has addressed the growing need for investments which are more flexible and suitable to current market conditions, launching a hybrid bond tailored to meet the high standards of institutional investors; as well expanding its operations with the acquisition of Alpha Longevity Management Limited.

Earlier this year, Alpha launched its innovative product: a hybrid security called High Yield Return (HYR). The HYR is an attractive risk yield over a 10-year term with minimal correlation to equity and commodity markets, meaning that investors and insurers are not vulnerable to market volatility and price crashes — a very attractive option in these times.

The product is a debt equity hybrid investment, coupled with risk management and quality-rated collateral that provides diversity and safety in return for a range of investors, institutions and insurers.

The market for our services is very niche; we are the only advisory business in this segment with a footprint in the UK and the US, where the assets originate. As an alternative asset, life settlement provides a very high-risk adjusted yield compared to other asset classes. Furthermore, longevity assets are uncorrelated to other financial markets and you know what your return is going to be, your rate is basically locked in,” says Gobind Sahney, Alpha Growth Executive Chairman.

The upward journey of the company and the opportunities in this space are reflected in the rise of its share price since IPO at 1.25p, escalating more prominently after the acquisition of Alpha Longevity in September.

For more information about Alpha Growth visit the company’s website: http://algwplc.com and contact PR and IR Representative Stefania Barbaglio at stefania@cassiopeia-ltd.com