The client specialises in base metal futures and options trading, including participation in the LME market. In addition to futures, the client provides services such as warrant, bullion, and option trading. Although these services are not the primary focus, they form an essential part of the overall business operations.
The client operates offices in the UK and Asia, with a customer base spanning South East Asia. Most customers deal in physical metals and engage the client’s services for hedging purposes rather than speculative trading. The client’s strength lies in catering to specialised trading strategies and meeting specific requirements.
Project
In 2022, the client partnered with Sinara to review operational practices across its offices in the UK and overseas, with the goal of identifying areas for improvement. Following this analysis, Sinara made a proposal to transform existing trading processes by implementing a new system based on SinaraTLC. This system was intended to become the central platform for daily trading activities, replacing various disconnected tools with a single, comprehensive solution to manage all tasks related to orders, trades, margining, reporting, invoicing, and user management.
The project was divided into two phases, each involving multiple software releases. The first phase, started in 2023, aimed to replace the existing order management system with expanded order capture capabilities covering diverse trading use cases, including average and swap orders. This system integrates with the client’s legacy middle/back-office platform handling post-trade activities. The first phase went live in summer 2024 and is hosted on Amazon AWS by Sinara on behalf of the client, with access points around the world.
The second phase, going live in Q4 2025, will replace the legacy back-office platform with SinaraTLC components, enabling further automation and streamlining of manual or spreadsheet-based processes.
Workflows
The core workflow involves receiving instructions from customers to buy or sell specific amounts of metal for future delivery at predetermined prices or conditions. Orders may be placed directly or initiated through client quotes, which can lead to transactions if accepted. Upon fulfilment of conditions, trades are executed and passed to post-trade systems for processing.
Throughout the process, clients receive notifications via on-screen notifications and email. Post-trade workflows cover margin management, requiring margin payments from the client to exchanges or vice versa. Futures and options positions are marked to market daily, with margin calls and fund transfers managed accordingly.
The settlement process typically concludes at contract expiry, but in some cases, it involves physical metal delivery through warrants, necessitating warehouse fees and stock management.
Additionally, profitability reporting is essential for monitoring trading performance, with profits derived from commissions and proprietary trading. The cost structure includes client credit line financing and exchange fees. Regulatory reporting and compliance are also key components of the system.
Architecture
The SinaraTLC platform employs a microservices architecture, with asynchronous communication through message queues and synchronous HTTP interfaces for auxiliary features. Data persistence is managed through operational and archive databases. The platform supports comprehensive functionality, enabling order and trade management, position monitoring, reconciliation, settlement, payments, reporting, reference and market data handling, and margining. It integrates with internal systems such as accounting, as well as external platforms including LME and CME exchange systems, ensuring coordination across trading and post-trade workflows.
Technology
The system is developed in C#, C++, and Vue.js, and operates on a Linux environment running .NET Core. Docker containers orchestrated by Kubernetes ensure resilience and scalability, adjusting automatically based on demand.
Deployment is on Amazon AWS, utilising PostgreSQL databases.
