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Industry

Commodity Trading

Job Title

Compliance Officer

Role

Responsible for ensuring compliance within a commodity trading house

Data

Vessel Data, Sanctions Data, Dual Use Goods Data, Credit and Risk Data, Trade Data, Vessel Tracking Data, Ownership Data

Commodity Trading

Commodity trading involves the buying and selling of raw materials or primary products, such as metals, energy resources, agricultural products, or commodities, with the aim of generating profits from price fluctuations. It is a global market where traders speculate on the future value of commodities, leveraging supply and demand dynamics, geopolitical factors, and market trends to make trading decisions.

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Role
Data

Compliance officers play a crucial role within commodity trading houses, ensuring that the organisation adheres to relevant laws, regulations, and internal policies. Their responsibilities encompass monitoring trading activities, mitigating risks, and promoting a culture of compliance.


Understanding Regulatory Frameworks: Compliance officers need a deep understanding of the regulatory frameworks governing commodity trading. They familiarise themselves with laws and regulations specific to the commodities market, such as anti-money laundering (AML) laws, trade sanctions, market abuse regulations, and position limits. Staying up-to-date with evolving regulations is essential and will be supported by both data and insight on new packages from governments/regulatory bodies globally such as OFAC, HM Treasury, The EU and many more.


Developing Compliance Policies and Procedures: Compliance officers collaborate with legal teams and senior management to develop comprehensive compliance policies and procedures tailored to the commodity trading house. These policies cover areas such as risk management, insider trading prevention, data privacy, client onboarding, sanctions screening, dual use goods, sanctions busting activities, and conflicts of interest. They ensure that these policies align with industry best practices and regulatory requirements.


Conducting Risk Assessments: Compliance officers conduct regular risk assessments to identify potential compliance risks within the trading house. They analyse various aspects, including trading activities, business relationships, and operational processes. Risk assessments help prioritise compliance efforts, implement appropriate controls, and mitigate potential compliance breaches.

Establishing Compliance Training Programs: Compliance officers design and deliver training programs to educate employees on regulatory obligations and internal compliance policies. These programs aim to foster a culture of compliance throughout the organisation. Training sessions cover topics such as market manipulation, proper use of trading platforms, reporting obligations, sanctions screening, and conflict resolution.


Monitoring Trading Activities: Compliance officers employ sophisticated monitoring systems and technologies to oversee trading activities within the commodity trading house. They analyse trade data, communication records, and market indicators to identify any suspicious or non-compliant behaviour.


Conducting Compliance Audits: Periodically, compliance officers conduct thorough compliance audits to assess the effectiveness of internal controls and processes. Audits involve reviewing documentation, interviewing employees, and evaluating systems and procedures. Findings from audits are used to identify gaps, implement corrective measures, and enhance the overall compliance framework.


Managing Regulatory Reporting: Compliance officers are responsible for ensuring accurate and timely regulatory reporting. They compile relevant information and submit required reports to regulatory authorities. This includes transaction reporting, position reporting, client disclosures, and AML reporting. Compliance officers stay updated on reporting requirements to avoid penalties or sanctions.


Handling Regulatory Inquiries and Investigations: In the event of regulatory inquiries or investigations, compliance officers act as the primary point of contact. They collaborate with legal counsel to gather requested information, respond to inquiries, and address any potential violations. They also assist in implementing remedial actions or improvements based on investigation outcomes.


Monitoring Regulatory Changes: Compliance officers continuously monitor regulatory developments and changes within the commodities market. They assess the impact of new regulations on the trading house's operations and update internal policies accordingly. Staying informed about emerging trends helps ensure ongoing compliance and proactive risk mitigation.


The role of a compliance officer within a commodity trading house involves a multi-faceted workflow to navigate regulatory complexities effectively. By developing robust policies, conducting risk assessments, monitoring trading activities, and managing regulatory reporting, compliance officers play a vital role in safeguarding the integrity and reputation of the trading house. Their proactive approach and commitment to compliance help foster a compliant and ethical trading environment.

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Commodity Trading - Compliance Officer

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