In an ever-evolving commodity trading landscape, staying ahead requires not only a deep understanding of the industry but also a commitment to continuous innovation. David Glasspool, Head of Sales and Marketing at Amphora, brings a unique blend of frontline trading experience and software implementation expertise to his role. In this insightful interview, David discusses the evolution of the CTRM industry, and highlights how Amphora's cutting-edge solutions are designed to meet the complex needs of commodity traders worldwide. Discover how Amphora is positioned to navigate the future of commodity trading and the key trends that will shape the industry in the coming years.
A TechPros.io
Interview with
David Glasspool
Amphora's Head of Sales and Marketing
In an ever-evolving commodity trading landscape, staying ahead requires not only a deep understanding of the industry but also a commitment to continuous innovation. David Glasspool, Head of Sales and Marketing at Amphora, brings a unique blend of frontline trading experience and software implementation expertise to his role. In this insightful interview, David discusses the evolution of the CTRM industry, and highlights how Amphora's cutting-edge solutions are designed to meet the complex needs of commodity traders worldwide. Discover how Amphora is positioned to navigate the future of commodity trading and the key trends that will shape the industry in the coming years.
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David, please tell us about how your early experiences shaped your perspective on the industry and your career path that led you to Amphora?
My career began in 2001 in the front office, where I started as a gas and power operator, managing gas pipelines and power stations. I then transitioned to natural gas trading, focusing on European assets like storage facilities, pipelines, and hedging LNG cargos. Then I had the opportunity to develop my own CTRM system to focus on trader selection for oil, gas, and LNG clients.
Amphora then approached me to lead their CTRM implementations a decade ago, and for the last few years, I've headed the sales and marketing team. My initial years in the front office were invaluable, providing me with a deep understanding of the industry's operational side, which helps when interacting with users. Having been involved in the system selection processes, I know what users need and their pain points. This experience has been crucial in developing a user-centric approach at Amphora, ensuring our CTRM solutions meet our clients' needs.
For those less familiar with Amphora, can you provide an overview and what sets you apart in the CTRM industry?
Amphora was established over 25 years ago, making us a proven and trusted vendor. We specialise in commodities such as crude oil, refined products, coal, iron ore, renewables, LNG and concentrates. Our system has broad, deep functionality, developed over years of daily use by our clients. While most systems can handle standard functionalities, it’s the edge cases, those one-in-a-thousand scenarios, where we really stand out. Because we’ve been around for so long, chances are that at some point, one of our clients has needed to handle a similar scenario, and we've built that functionality out for them. This means new clients can often address these edge cases straight out of the box without relying on spreadsheets to make approximations and assumptions.
Our system is also highly scalable. Whether you have five users, 500 trades, or 1,000 commodities, you can implement our system quickly and easily, managing it all yourself without needing our intervention for updates or changes. This flexibility and ease of use are key aspects that set us apart in the industry.
Having been in the industry for over two decades, how have you seen the commodity trading field evolve, particularly with technological advancements?
Initially, CTRMs were mainly suitable for large organisations, with implementations often costing millions of dollars and taking years to complete. Today, most vendors offer cloud solutions, significantly reducing the cost and the timeframe for implementation. At Amphora, we aim to complete implementations within 12 weeks, often achieving this even quicker.
The advent of open APIs has been a game-changer, allowing different software modules within an organisation to communicate seamlessly. In the past, companies relied on one piece of software for everything, often leading to compromises. Now, businesses can integrate best-in-class solutions for various functions through open APIs, simplifying data management and system integration.
Another key development is ensuring that all clients, regardless of size, are on the same software version branch and can upgrade simultaneously, preventing anyone from being left behind with outdated software and allows all clients to contribute to the software's roadmap and benefit from continuous innovation.
What key features and capabilities make Symphony, Amphora's flagship multi-CTRM platform, so powerful for clients?
Symphony, our generic CTRM, excels in managing commodities such as crude oil, LNG, LPG, and refined products. One of its standout features is its adaptability, allowing users to create additional fields, decide if they are mandatory, and customize their views. This allows traders, operators, and back-office staff to build tailored workspaces and dashboards. Symphony makes it easy to build and share these customized views, and simplifies getting data in and out of the system in the required format.
The multi-commodity functionality and the ability to handle complex trades are key differentiators. This flexibility ensures that clients can manage their trading activities efficiently and effectively, regardless of the complexity involved.
What are the biggest challenges facing firms in managing their trading operations effectively, and how does Symphony help address those pain points?
One of the biggest challenges is capturing all your data and being able to extract it effectively. For audit purposes, it's crucial to have all data within the CTRM itself. However, it’s equally important to easily get data out, whether via APIs or a simple Excel extract. No user should be forced to make assumptions or approximations outside the system and then input limited amounts of data back into the CTRM software.
Symphony addresses these pain points by ensuring that all data can be captured and easily extracted as needed. This reduces the risk of errors and ensures that all relevant information is available within the system, supporting better decision-making and compliance.
What spurred the development of Alchemy, Amphora's purpose-built platform for concentrates trading, and what advantages does it provide over a generic CTRM system?
Concentrates trading is significantly more complex compared to other commodities, with numerous nuances in each contract. The terms can vary greatly between different miners and counterparties. A CTRM system must capture these nuances and the optionality within these contracts quickly and accurately.
Generic CTRM systems might allow users to enter concentrates trades and show correct positions and P&L, but they often miss the optionality and specific terms within the contracts, which are crucial for accurate reporting and management.
Alchemy was developed to address these challenges, allowing users to capture all these nuances with just a few clicks in the user interface. This eliminates the need for extensive coding and ensures users have a seamless experience managing trades. Alchemy provides a significant advantage in managing the complexities of concentrates trading, making it a game-changer in the industry.
What is Amphora’s approach to implementation and training to ensure a smooth rollout that accelerates time to value for clients?
Over the 25 years Amphora has been in business, we've developed our own implementation model with implementations now taking 12 weeks or less, with full transparency throughout the process. We set up a project steering committee and a project working group at the start. The steering committee, which includes upper management, meets monthly and signs off on the project, while the working group, meets for one or two hours each morning for the first month to scope out requirements.
For training, we tailor packages for each user. Our accountancy course is the shortest, lasting two hours. The super user course, which provides a high-level experience of all modules, takes 16 hours. All our courses are CPD certified, providing a qualification at the end and ensuring continuous improvement.
How do you tailor your solutions and services to address the unique regional nuances and business practices across the different markets that you serve?
Being scalable and adaptable is key. Capturing additional data for a local market that may not be captured elsewhere in the system is very easy. In my experience, about 95% of commodity trading data is the same wherever you trade, but the last 5% can vary. This often includes different clauses on confirmations based on the local market, tax rules, or regional requirements on invoices.
Symphony has templates for various tasks, like invoice generation. We can build logic into these templates based on user requirements. For instance, if trading a commodity in a specific location, back charges can be automatically included on the invoice, or specific FX terms can be added to the confirmation if trading with a particular counterparty in a specific currency.
This flexibility is built into the system, so when users input their data—such as the commodity they're trading—all the trade recaps and documentation adapt based on these inputs. This adaptability ensures that our solutions can meet the unique needs of different regional markets effectively.
Can you share some insight into your product roadmap and the key investment areas you are focusing on to extend your capabilities going forward?
This year, we're focusing on two major themes. The first is the ability to upgrade each of our modules independently rather than waiting for a core upgrade. Currently, our core releases are every six months, but starting in August, we'll be able to release each module separately. This means if we build new functionality we can release it the following weekend.
The second theme is enhancing our APIs to improve reporting functionality. There's increasing demand from users who want to create their own reports and extract data easily. By focusing on these two areas—independent module upgrades and enriched APIs for better reporting—we aim to provide more flexibility and responsiveness to our clients' needs.
Can you tell us about Amphora's sandbox offering and how potential clients can get a hands-on feel for your systems?
This is something we heavily encourage potential new clients to do. We excel here because we cover all your edge cases. In a demo, the vendor can steer it to a certain extent, but with hands-on testing, clients can truly test the system's capabilities.
Our sandbox offering involves a phased approach. Initially, we provide a generic 45-minute walkthrough of our applications. In the second phase, we encourage clients to give us bespoke scenarios. We sign an NDA and use their contracts to set up the system. The final stage is hands-on testing, where the client uses the system themselves with our business analysts' support.
This process allows clients to test complex scenarios and identify any gaps. If gaps are found, we can address them before the go-live date. The major benefit is that the implementation has a head start, as we've already set up their reference data and system configuration. This accelerates the time to value, making the sandbox offering an excellent way for clients to get a hands-on feel for our systems.
What do you predict will be the biggest shifts in the commodity trading industry over the next five to ten years, and how is Amphora positioned to help companies navigate that changing landscape?
AI is a buzzword in any industry, and it will certainly be the case for CTRM software. We know this will be a game-changer for most of our clients. As they learn how to best use the data they have, they need to be able to extract it more easily from the CTRM. By enriching all our APIs, we aim to play a central role in helping them with this.
Amphora is well-positioned to support companies in this evolving landscape by continuously innovating and enhancing our systems to meet future demands. Our vision for the future is to remain at the forefront of the CTRM industry, leveraging new technologies to provide our clients with the best possible tools and solutions. We aim to continue evolving our products to meet the changing needs of the market and to help our clients navigate the complexities of commodity trading with greater ease and efficiency.
For those interested in learning more about Amphora and its offerings, visit Amphora's website at www.amphora.net, specifically the resource section, which features newsletters and articles covering topics such as training sessions, implementation processes, and common mistakes made by new users of CTRM systems.
Amphora offers an initial 45-minute product demonstration tailored to specific commodities, providing a comprehensive overview of Amphora's capabilities.
Interested parties can reach out directly to David Glasspool via LinkedIn or email david.glasspool@amphora.net to arrange this demonstration and discuss further tailored solutions.