Headquartered in Singapore, Olam International is a leading agribusiness, supplying industrial raw materials and food from seed to shelf to over 16,000 customers in 70 countries. The company’s commodity derivatives trading business unit, CFSG, combines quantitative modeling with Olam’s extensive commodity supply and demand insight to trade futures and options.
To monitor the market risk of these strategies and to perform backtesting and scenario analysis, Olam CFSG built a trade analytics and risk management system in MATLAB®. The system processes 2.5 million transactions and 4 million market data records daily to evaluate trades. The system is used for attributing profitability and performing risk assessments using historical data.
“MATLAB enabled us to develop a scalable enterprise trade management platform that is a tremendous improvement over the previous approach we were using,” says Ananthi Jegan, product manager in Olam CFSG. “With MATLAB, we have reduced errors and staffing requirements while saving time and increasing efficiency.”