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Development of a Scalable OTC Commodity Trading Platform for the Energy Market
  1. case
  2. Development of a Scalable OTC Commodity Trading Platform for the Energy Market

Development of a Scalable OTC Commodity Trading Platform for the Energy Market

pragmaticcoders.com
Energy & natural resources

Identified Challenges in Modernizing OTC Commodity Trading Systems

The client faces inefficiencies and security concerns with outdated trading systems, hindering rapid deal execution and compliance in a competitive OTC energy market. They require a modern, scalable SaaS platform to disrupt traditional trading workflows, improve UI/UX for traders, and meet stringent security and regulatory standards to attract market makers and investors.

About the Client

A mid-sized energy trading firm seeking to modernize its OTC commodity trading operations with a secure, scalable SaaS platform to facilitate deal processing, offer placement, and regulatory compliance.

Goals for Developing a Next-Generation OTC Trading Platform

  • Rapidly develop and deploy a functional MVP to demonstrate core trading capabilities and secure initial funding.
  • Scale the platform into a fully operational, production-ready solution within 12 months.
  • Enable users to efficiently place offers, execute trades, and manage risk with an intuitive UI/UX.
  • Incorporate comprehensive trade processing features including compliance and security protocols.
  • Achieve a scalable architecture capable of handling increasing trading volumes and user base.

Core Functional Requirements for the Trading Platform

  • A sleek, responsive UI/UX interface enabling quick offer submission and trade management.
  • Real-time trade processing engine capable of handling high-volume transactions.
  • User authentication and access control tailored to trader roles and compliance standards.
  • Trade monitoring and audit trail features for regulatory compliance.
  • Integration of security measures such as encryption, secure APIs, and data security protocols.
  • Modular architecture supporting incremental feature addition and scaling.

Recommended Technologies and Architectural Approach

Microservices architecture for scalability and maintainability
Cloud-based infrastructure on a major cloud provider (e.g., AWS, Azure, GCP)
Modern frontend frameworks optimizing UI/UX (e.g., React, Vue.js)
Robust backend development with secure APIs (e.g., Node.js, Java, or similar)

Essential External System Integrations

  • Market data feeds for real-time trading information
  • Regulatory compliance systems for reporting and audit
  • Authentication and identity verification systems
  • Secure payment and transaction processing gateways

Non-Functional Requirements and Performance Metrics

  • Platform must support at least 1,000 concurrent users in production
  • System uptime of 99.9% with disaster recovery capabilities
  • Data encryption at rest and in transit to ensure security
  • Response time under 2 seconds for core trade operations
  • Compliance with relevant industry security and data standards

Expected Business Outcomes and Benefits

The platform aims to enable the client to secure essential funding through a successful MVP within the initial phase, followed by rapid scaling to a robust, secure, and compliant trading system. This will improve trading efficiency, attract key market participants, and position the client as an innovative leader in OTC energy commodity trading, leading to increased trade volumes, enhanced market confidence, and strengthened competitive positioning.

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