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The company visit to BTG Pactual Commodities Shanghai was a unique one … (it) has opted for an asset-light model, and therefore has no physical assets such as plants and ports to visit…
We were introduced to the London Metal Exchange (LME) and Shanghai Futures Exchange (SHFE), where we gained insights into the importance of understanding the exchange in the commodities business – how issues can arise should we not be able to close positions by selling or making physical delivery.
In addition, we were also given brief insights into pricing and how money is made out of the business. This widened our perspective from classroom learning and we were able to see the creative aspect of the commodities business.
The bottom line is – the trading role is not the sole activity within a trading house. Departments work together like cogs in a watch. To get things moving, everyone has a role to play. Risk management, finance, human resources, operations and legal – employment opportunities within a trading house can cater to undergraduates of various specific interests and skills.
Read more about SMU’s Industry Study Mission China visit to BTG Pactual Commodities.
Credit: International Trading Institute@SMU