Baltic Exchange and TradeFlow Capital Management Complete Pioneering Escrow Transaction for Commodity Export Trade


SINGAPORE, January 9, 2022 / PRNewswire / – Result of a partnership between fintech fund manager TradeFlow Capital Management (TradeFlow), part of the Supply @ Me group (LON: SYME), and the Baltic Exchange, a leading supplier to the market global freight. information and other maritime services, TradeFlow and the Baltic Exchange completed a pilot escrow transaction in a commodity trade executed through TradeFlow.

Baltic Stock Exchange

TradeFlow Capital management

TradeFlow Capital management

The transaction, which involves a shipment of agricultural products from India at China, heralds a new era in the fast and secure digital exchange of physical goods ownership and payment. The service will initially focus on the underserved segment of small and medium-sized enterprises (SMEs) operating in the bulk commodity markets.

This successful test case paves the way for greater adoption of escrow technologies and processes that will reduce paperwork, minimize transaction time, and improve the overall efficiency of commodity trading, increasing the turnover speed of the business. capital in the commodity trade ecosystem without compromising security.

With a growing SME trade finance gap estimated by the Asian Development Bank (ADB) at over US $ 1.7 trillion, this revolutionary use of escrow within a commodity trade promises to unlock and enable additional commodity trading for SMEs worth billions of dollars each year.

The Baltic Exchange operates an independent escrow service that holds funds on behalf of clients in dedicated escrow bank accounts. The service has been tailored to meet the needs of a range of markets and use cases, including asset purchase and sale transactions, litigation, and vessel charter business guarantees.

Dr Tom james, CEO and CIO of TradeFlow said: “Partnering with the Baltic Exchange is essential to achieving TradeFlow’s mission of enabling more transactions for SMEs around the world and delivering quality strategies and products to customers. investors at the same time. Baltic Exchange’s services are highly complementary to our unique no-credit, no-loan, and asset-backed approach, which relies heavily on the simultaneous and secure exchange of ownership documents with payment to the commodity vendors in which we invest. .

Jean Collis, CRO of TradeFlow added, “Using traditional methods to execute these transfers can cause capital to freeze for several weeks, resulting in additional costs and capital inefficiencies throughout the trading ecosystem. We were impressed with how easily we were able to work with the Baltic Exchange and how smooth the entire escrow process was. “

Marc Jackson, the Managing Director of Baltic Exchange said: “We are delighted to support this innovative initiative with TradeFlow. The independence and credibility of the Baltic Exchange, supported by robust processes and infrastructure, allows us to provide an escrow service that supports a wide range of businesses and applicants. “

About the Baltic stock exchange

The Baltic Exchange represents a global community of maritime interests. These include shipowners, charterers and ship brokers who are collectively responsible for the management of much of the global dry cargo and tanker facilities, the trade in freight by-products as well as the sales. and the purchase of merchant ships.

The Baltic Exchange is regulated by the UK’s Financial Conduct Authority (FCA) in accordance with the EU Benchmarks Regulation. It is the trusted data provider for the settlement of physical and derivative freight contracts, which underpins risk management tools for the shipping and transportation markets.

Founded in 1744, the Baltic Exchange is headquartered in London with the regional offices of Singapore, Shanghai, Athens, Stamford and Houston.

In 2016, the Baltic Exchange was acquired by Singapore Exchange (“SGX”).

Baltic Currency Exchange Services:

  • Daily references for the dry, wet, containerized and gas freight markets

  • OPEX, S&P, ship recycling and prospective assessments

  • Air cargo valuations

  • Support for escrow and dispute resolution

  • Management training via the Baltic Academy

  • Networking for maritime transport professionals

About TradeFlow Capital Management

TradeFlow Capital Management (TradeFlow) is the premier Fintech-powered, SME-focused commodities trade facilitator. TradeFlow consists of a diverse team of experts whose mission is to bridge the growing trade finance gap facing global SMEs operating as producers / traders / end users in the commodities trading space by bulk. By playing a leading role in international trade and globalization, TradeFlow creates growth opportunities for businesses and economies.

TradeFlow transforms the risk associated with import / export transactions of commodities of SMEs, which are the cornerstone of modern economies, into quality products for banks and investors. It does this by using a proprietary Risk Transformation Engine (RTE) paired with the latest digitization technology, including artificial intelligence, to power its innovative no-credit, no-loan model. TradeFlow’s RTE architecture offers the added benefit of higher risk-adjusted returns and capital preservation for investors and is highly complementary to traditional commercial lending institutions like banks.

To date, TradeFlow has successfully invested in over US $ 1 billion of physical commodity trade through over 800 transactions in over 15 countries and over 25 commodity types, with over 800 SME peer entities reviewed KYC. As part of its unique business model, TradeFlow Funds *, advised by TradeFlow, were designed in 2016 and launched in 2018.

Since december 2020.

In July 2021, Tradeflow was acquired by Supply @ ME Capital plc, the innovative fintech platform that provides inventory monetization service © to manufacturing and trading companies, and which is listed on the London Stock Exchange. The combined strengths of the two entities strengthen TradeFlow’s ability to fulfill its mission of enabling trade for SMEs around the world and, in so doing, support the United Nations SDGs.

TradeFlow is a partner of the International Chamber of Commerce (ICC) to raise capital and improve access to trade finance for small and medium-sized enterprises (SMEs) around the world through the “ICC Trade Now” and “ICC Digital” platforms Trade Standards Initiative ”.

We are a FinTech Certified Company (SFA), a Corporate Member of the Singapore FinTech Association (SFA), a Member of the Alternative Investment Management Association (AIMA), a Member of the Bankers Association for Finance and Trade (BAFT), a associate Member of EuroCham Singapore and Gold member of the South African Chamber of Commerce.

TradeFlow is a registered fund management company (RFMC) regulated by the Monetary Authority of Singapore (MAS).

* # 1 SME-Focused Trade Finance Fund in Annual Net Returns to Investors in 2020, According to Alternative Investment Database Records Preqin

TradeFlow Capital Management Pte Ltd

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SOURCE TradeFlow Capital management


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