Problem

The client, a leading oil major and global trading company, sought to transition from inefficient, paper-based trade confirmations to a streamlined, digital process. They engaged VAKT to implement a solution that would digitize and standardize their post-trade confirmation procedures, initially focusing on the North West Europe (NWE) barges market.

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Solution

Our team collaborated closely with the client’s VP of Operations and project managers to thoroughly understand their existing post-trade confirmation workflows. We mapped out the client's future-state processes, demonstrating how VAKT’s vSure product would streamline the confirmation process. Previously, paper contracts were sent manually, often requiring multiple email exchanges, and the manual entry of contract details introduced the risk of discrepancies with counterparties.

To address this, VAKT worked with the client’s tech team to integrate their ETRM system with the VAKT platform via API, enabling secure data flows through VAKT’s blockchain network.

Simultaneously, the client’s legal team facilitated the signing of multiple MTAs and side letters with their VAKT counterparties, allowing for digital confirmation and the phasing out of paper contracts.

Where VAKT’s vSure solution was implemented, the workload on the client’s operations team was significantly reduced. The post-trade workflow was streamlined, with each trade being automatically matched and discrepancy-checked with the counterparties’ entries. The vSure platform allowed the client to digitally, securely, and legally confirm trades without paper contracts, ensuring full alignment of trade details with their counterparties.

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Benefits

·       Standardized Contracts: Implemented a uniform, digital contract format across all post-trade processes, ensuring consistency and compliance.

·       Automated Deal Matching: Enabled automatic matching of trades with counterparties, guaranteeing perfect alignment of negotiated terms and reducing discrepancies.

·       Accelerated Workflows: Significantly reduced processing times, resulting in faster trade confirmations and overall operational efficiency.

·       Paperless Operations: Eliminated the use of paper contracts and manual email exchanges, streamlining communication and documentation.

·       Reduced Risk Exposure: Minimized operational and legal risks associated with manual data entry and human error.

·       Operational Efficiency: Freed up the operations team by removing the need for manual contract handling, allowing for more strategic focus.

·       Confirmation Success: Successfully digitally confirmed over 270 trades within the first year, without the need for a single paper contract, demonstrating the platform’s scalability and reliability.

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AT A GLANCE

Without vSure​

1 - Operators manually process and send paper contracts​;

2 - No guarantee that the client's trade entry matches the counterparties', which can lead to misalignment and potential disputes later;

3 - Correspondence sent via unsecure emails​.

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With vSure​

1 - Contracts are fully digitized, eliminating the need for manual paper processing and freeing up operators' time to focus on higher-priority commercial tasks;

2 - Auto-pairing and instant discrepancy flagging ensures alignment with your counterparty's trade entry;

3 - The comments feature facilitates secure post-trade communications on the VAKT platform, utilizing blockchain technology to provide a shared timeline that captures all actions and interactions.

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