International Trading Business Unit manages trading transactions and activities globally, involving complex and high-value transactions, and also expose to counterparty risk and commodity price risk. An effective trading risk control system is an essential, we had adopted the best practices of leading trading house to balance flexibility under minimized risks and transparency of trading activities.
Trading activities are controlled by means of three aspects:
By policy, through a committee on trade framework, credit extension and business risk management and by using good corporate governance as a guideline for business conduct for management and staff.
By structure and duty, through a control and cross-check system under the company's policy and regulations. The division of job functions are front office (liaising with clients), mid office (regulates trading and risk management) and back office (contracts and credit management).
By IT system, Commodity Trading Risk Management (CTRM) examines and regulates trading and risk management electronically on the on-line real-time basis. The system allows us to observe any transactions being carried out instantly and or taking any action needed under the company's regulations and organization structure.