Commodity trading companies today operate in a highly competitive and dynamic environment. Richard Sharman summarizes the current challenges facing the industry, talks about Switzerland as a business location for commodities trading and points out the global trends of the sector.
Increased competition, the growing sophistication of customers and investors have forced many organizations to introduce more complex trading products and strategies. With this increase in complexity comes an increase in the associated risks. We have identified eight red flags that could indicate increased risks for stakeholders of commodity trading companies.
On 23 December 2011 the Swiss Parliament enacted the new accounting law, which became effective on 1 January 2013. The new accounting law includes some changes that are relevant for commodity trading companies, particularly with respect to the application of valuation principles.