Attack of the Algorithms: Value Chain Disruption in Commodity Trading
Digital forces are deconstructing commodity trading’s value chain—and, in the process, changing what it takes for traders to succeed.
Read MoreBig data and predictive algorithms expand the rigor of fundamental analysis and make results more accurate than ever, while information specialists provide structured data directly to trading systems. Computer analytics can process complex data in seconds, make targeted recommendations to traders, and even initiate trades on their behalf—all at speeds far exceeding human capabilities. Digitization is reducing commodity market imperfections, pushing commodities into a highly efficient, automated state that we call “hyperliquidity.”
BCG can help traders carefully consider their core processes and activities and determine to what extent each is subject to digital disruption. As digital technologies become more powerful, they will continue to transform commodity trading’s value chain—before, during, and after a trade:
Digital forces are deconstructing commodity trading’s value chain—and, in the process, changing what it takes for traders to succeed.
Read MoreDigital forces are transforming commodity trading’s value chain and sources of competitive advantage, redistributing billions of dollars in trading value in the process.
Read MoreThe trend toward hyperliquidity in commodity markets is creating an environment increasingly removed from commodity traders’ comfort zone.
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