R.J. O’Brien & Associates (RJO), the futures brokerage and clearing firm in the United States, and Phlo Systems, a provider of digital solutions for commodity trading, trade finance and international trade compliance, announced that the firms have entered into a tech partnership, which includes an “equity investment by an affiliate of RJO” in London-based Phlo Systems.
Terms of the investment were “not disclosed.”
The move is reportedly the first partnership and investment “emanating from the Technology Partnership Initiative RJO launched last year.”
Financial markets tech executive Tim Geannopulos has served “as a consultant to the RJO Executive Committee and Board on the initiative.”
Over the past year, RJO has identified areas for collaboration, with Phlo Systems as the first in a series of “expected partnerships that will further expand and diversify RJO’s business.”
RJO will be integrating Phlo Systems “with its Hrvyst agricultural technology (ag tech) solution.”
Phlo Systems, with its software platforms such as tradePhlo, opsPhlo and finPhlo, is recognized for empowering “commodity traders to manage complex workflows, compliance and financing.”
Leveraging emerging technologies such as Artificial Intelligence (AI) and blockchain, Phlo Systems is enabling cloud-native, “multitenant solutions that are transforming the future of commodity trading.”
These technologies allow Phlo Systems to provide platforms that are said to be tailored “specifically for the commodity trading industry.”
Brad Giemza, RJO Managing Director and Chief Risk Officer, said:
“Our investment in, and partnership with, Phlo Systems … will enable us to bring modern, scalable solutions to our clients, such as within our Hrvyst business unit and the commodity trading sector. Phlo Systems’ … platform aligns with our vision of providing innovative solutions that enhance decision-making, streamline compliance and reduce operational costs.”
Saurabh Goyal, CEO of Phlo Systems, said:
“This partnership not only enhances our credibility in the marketplace but also provides the capital needed to accelerate our growth and realize our vision of becoming a global leader in the digitization of commodity trading, trade finance and international trade compliance. RJO’s … expertise in commodity markets, combined with our technology, will unlock tremendous value for both of our customer bases.”
Hrvyst is RJO’s grain marketing profit solution, enabling users in the commercial grain industry to “manage their cash and basis grain ownership risk in real time and automatically convert cash grain contract management into futures hedging orders.”
The cloud-based Hrvyst solution enables users to “digitally streamline grain origination, merchandising and automated hedging.”
Hrvyst electronically links offers, purchases and sales “to the futures market and to a grain company’s accounting software system and mobile app, seamlessly and efficiently.”
Broker-agnostic, the solution can be used by “cooperatives and processors with a link to their existing brokerage firms.”