SOCAR Trading CFO States Importance of Providing Banks With Reassurance and Trust
GENEVA, September 17, 2020 (Newswire.com) - SOCAR Trading CFO Sanan Mammadov spoke earlier this week on a panel discussion at the GTR Commodities Virtual 2020 Conference on how the industry can build resilience at a time of disruption.
Mammadov was joined by Travis Randolph (PwC Switzerland), Christine Mcwilliams (Citi), Andrew Robison (HSBC Bank), Igor Ukrasin (Sberbank (Switzerland), and Ami Daniel (Windward). The panelists discussed challenges ranging from counterparty risk policies, access to liquidity and use of digital tools.
Mammadov stated that there were two challenges currently facing the industry: whether banks provide financing and at what price.
“It is important to have competition in the market. Avoiding risk would not be a constructive approach to the problem of banks preferring to fund large players over smaller players. However, technology is bringing assurance and trust to the banks. Different technologies in the market, such as blockchain, help provide additional trust to operations,” Mammadov explained.
Over the last two years, SOCAR Trading has invested significant time and resources in risk management and compliance, spearheaded by an influx of experienced professionals and the implementation of sophisticated IT support systems.
Mammadov went on to state that SOCAR Trading is present in all regions across the globe and can therefore see the movements across the world.
When asked if he thought there would be geographical shifts in where traders are based, he stated, “The same bank has different requirements in different parts of the world, and it is easier to get financing in Asia than in Europe because the requirements are more strict. This is very good for our business. However, we don’t see big changes in traders shifting their centers in the immediate future.”
SOCAR Trading’s global compliance team undertakes daily surveillance of the company’s trading systems and communication channels. It is supported by several IT systems to enhance screening, detection and reporting capabilities and to ensure a far greater degree of transparency throughout the organization.
Source: SOCAR Trading SA