Codel partners with GMEX to create a new hybrid paradigm for commodities

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Codel Board of Directors strengthened with key appointments

London, May 22 2017. Codel, the digital notary service provider, today announced a partnership with GMEX Technologies, a wholly owned subsidiary of GMEX Group, and provider of multi-asset exchange trading and post trade technology solutions. The companies will collaborate in areas where it is critical to prove digital data integrity throughout the value chain as well as connecting physical commodities with their digital equivalents.

“Our service makes both structured and unstructured data immutable allowing recipients of digital information to verify and trust it as completely as if it has been physically handed to them by the originator,” says James Zorab, founder and CEO of Codel. He added, “What we provide is real-world assurance in the virtual world we all now inhabit.”

Codel creates unique digital fingerprints called Codelmarks and stores them in an easy to find, centralised, immutable on-line ledger. Copies of the centralised ledger are then mirrored to multiple locations to minimise the risk of the data being lost or destroyed.

Users of digital data, that is Codelmarked, can prove its integrity continuously by checking the unique fingerprint in the data against the equivalent entry in the centralised on-line database. When the Codelmarked data changes, so does the digital fingerprint, thus it always remains up-to-date. Codelmarking of data is gaining significant traction with banks, stock exchanges and technology providers.

Codel is transformative because it provides trust for both digital and physical artefacts, using digital fingerprinting and physical marking technology and published audit trails that are immutable, printed in both digital ledgers and physically published reputable journals of record. Codelmarked data can be verified as it proliferates no matter how many times the document, physical item or data has been exchanged or processed. Codel’s patented core technology and innovative and enabling applications incorporate cutting-edge, peer reviewed cryptography for robust plug-and-play trust.

Commenting on the new partnership, Hirander Misra, Chairman of GMEX Group and CEO of GMEX Technologies says, “We are delighted to be collaborating with Codel in areas that can transform the digital security of trading commodities globally.” He continued, “With Codel’s tracking and document control capability, it is the only technology available that links the digital to the physical asset which for commodity trading provides state of the art governance. This integrated with GMEX advanced exchange trading, clearing, settlement and electronic warehouse receipts technology ensures that the current world of centralised systems and new world of hybrid centralised and distributed enablement can coexist as part of a unique game changing hybrid paradigm.”

As part of the company’s development strategy, Codel has strengthened the Board of Directors with the appointment of Mike Smith, CEO at ANZ until 2016. Mike takes over as Chairman from Peter Davis, formerly Director General of the National Lottery, who remains on the Board. Mike will also be joined by Mark Kerns, until recently Head of Investor Services at Standard Bank and Markus Ruetimann, formerly Group COO of Schroders.

Mike Smith commented, “I’m delighted to be joining Codel as we expand our innovative product capability. Codel is building an impressive profile within financial services, and has significant traction in other sectors, including health-care, supply chain and intellectual property protection.”

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About Codel
The Codel Group develops applications for its digital notary, a technology for proving the authenticity and validity of data in real time, spanning multiple sectors including financial services, product/asset tracking, intellectual property, media and health. Codel’s core solution delivers a practical solution to establishing the provenance of data, providing services that protect data and making it verifiable as accurate, current, permanent, persistent and immutable in real time.

Codel can publish trusted audit trails underpinning digital services through distributed ledgers or physically printed journals of record proving transaction security and compliance with regulation.

Codel provides a suite of enabling applications that incorporate this trust for identity enrolment, document control, information publication and data analytics.

For more information please contact:
Matthew Barnett
Public Relations Director
james.zorab@codelmark.com
07703 026966
Matthew.barnett@codelmark.com

About GMEX Group
GMEX Group is a set of companies that offer sustainable and innovative solutions for a new era of global financial markets. Providing business expertise, the latest technology, connectivity & operational excellence delivered through an aligned partnership driven approach. We use our extensive market infrastructure experience and expertise to create an appropriate strategic master plan with exchanges, clearing houses, depositories, registries and warehouse receipt platforms.
Our key business solutions enable the creation and operation of cost effective electronic exchanges and post trade infrastructure in multiple asset classes including equities, debt, FX, derivatives and commodities. We operate in both developing and developed markets through the establishment of cohesive business and technology ecosystems. GMEX offers the added benefit of interconnection to multiple partner exchanges, to create global networks of liquidity.

About GMEX Technologies Limited
GMEX Technologies Limited (GMEX TECH) is a wholly-owned subsidiary of GMEX Group. GMEX TECH is provider of multi-asset exchange and post trade technology, which includes an FCA vetted high performance exchange trading system, through to a leading edge matching engine, market surveillance system, several front end trading platform options as well as clearing house, depository and electronic warehouse receipts systems.
For more information visit www.gmex-group.com or follow us on Twitter @GMEX_Group

Media Contact for GMEX:
Melanie Budden
The Realization Group
+44 (0)7974 937 970
melanie.budden@therealizationgroup.com

World Bank Article – Author Steve Round

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I recently read an interesting blog by Margaret Miller at the World Bank – Can ‘fintech’ innovations impact financial inclusion in developing countries?

It stated that “fintech,” has been reshaping the financial services industry attempting to address financial inclusivity in the African region – I use the phrase inclusivity rather than inclusion as sometimes I believe that its an excuse for may providers to deliver a “second class product “ – we should be aiming for a first class product available to as wider audience as possible – inclusivity !

Margaret asks that given that they work in various areas of financial inclusion they are interested in new ways that can help expand access to financial services to hard-to-reach populations and small businesses in developing countries.

Margaret highlights the key takeaways she found relevant to their work of extending access to finance to the two billion people who are currently left out of the formal financial system. These were Fintech as partners with banks (and competitors), Importance of data Consumer protection Customer-focused business Finance embedded in transactions Voice, not text, as the next major interface Strong interest in the legal and regulatory framework and Many interesting new business models.

I agree the points made – but when it comes to financial inclusivity we need to ensure that we are putting together a sustainable ecosystem to deliver real change that will not only impact on the individuals but on the commuinities that they live in and therefore offer the greatest opportunity for developed Financial Services system that is trusted.

At FinComEco we intend to encourage growth by connecting the farmer with the exchange, financial infrastructure and national economy through partnerships. This supply to demand chain also includes small-scale traders, brokers, storage, transportation, shipping, banks and buyers including multinationals. This will enable smallholder farmers to get a better price for their produce, and provide opportunities for further income growth, opening alternative added-value opportunities including e-commerce enabled enterprise and the data that provides will enable even greater product and service enhancements.

FinComEco has already successfully proven this concept in Malawi at the Agricultural Commodity Exchange for Africa (ACE) through the GMEX Group. During 2016 substantial benefits were delivered to smallholder farmers with an average 31% increase in income from use of warehouse receipts and better price transparency with 47,000 registered to receive the latest market prices on their mobile phones.

FinComEco will establish or reinvigorate local commodity exchanges underpinned by trading technology, electronic warehouse receipts and a complete mobile banking solution. It will also enable trade across multiple regions and deliver a holistic secure cloud-enabled financial agri-ecosystem in partnership with development organisations, governments, research bodies and the private sector.

This will enable the highest level of consumer protection and customer focused business as we will be working with local on the ground partners using the latest technology but also trusted local partners to work with the local community
Delivering the FinComEco solution requires us to use the latest technology, close partnerships with local agencies together with high levels of regulatory and legistative compliance nationally.

Steve Round, Director of FinComEco, CEO at Saescada and Chair at The Big Issue Foundation and Ecology Building Society commented, “There are massive financial inclusivity and food security issues across the developing world with not enough being done in a cohesive fashion to address some of them,” he added, “I am delighted that our mobile electronic banking and payments system can add real value, in this unique integrated solution, to many millions of farmers delivering against many of the United Nations Sustainable Development Goals and it is a first class product ! “

Template for Change: How corporate initiatives are empowering women smallholder farmers in Malawi

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Women smallholder farmers form the backbone of Malawi’s agricultural workforce, yet their average productivity per hectare still remains far lower than that of their male counterparts. In this article, Mike O’Hara and Nicola Tavendale of The Realization Group discuss with Hirander Misra of GMEX Group and FinComEco, Kristian Schach Møller of the Agricultural Commodity Exchange for Africa (ACE), Saskia Vossenberg of the Royal Tropical Institute (KIT) and Alice Kachere, a smallholder farmer in Malawi, how technology and other business initiatives can help redress the balance.

 

Please Click Here for Full Article

A New Approach: Improving Smallholder Farmers Prospects in Malawi and Beyond in Sub Saharan Africa

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By Hirander Misra, CEO of GMEX Group and Deputy Chairman of FinComEco.

The backbone of Malawi’s economy remains its agricultural output, with smallholder farmers in turn forming the vast majority of this sector’s workforce. Yet while agricultural production forms some 39% of the nation’s GDP, its smallholder farmer workforce continues to face a number of constraints. From the field to the market and from the bank to the trading floor, smallholders face key limitations to their growth. But I believe that if this vital sector is supported with the development of the right tools, technology and an effective supply chain, it will significantly improve their productivity, food security and livelihoods – for themselves, their family and their wider community as a whole.

This is the fundamental philosophy which inspired GMEX Group to develop and lead a newly formed venture called FinComEco, which aims to tackle a number of these productivity challenges from the ground up. By fostering the growth of a modern, efficient financial and commodities ecosystem, we are actively making the whole supply-to-demand chain more efficient. To me, fostering financial inclusion with social responsibility is ultimately the long-term, sustainable solution to improving food security and economic diversity in Malawi and countries throughout Sub Saharan Africa. Yet to be effective, this goal must also be achieved in collaboration with local stakeholders, development organisations, governments, research bodies and the private sector.

Old problems, innovative solutions

 

Over the past year, GMEX Group has been proving this concept in Malawi by working in close collaboration with Agricultural Commodity Exchange for Africa (ACE). We initially started working with ACE when we realised that many of the issues it was attempting to address with a spot agricultural commodity exchange and electronic warehouse receipts could benefit from our expertise in developing financial, trading and technology solutions. In turn, ACE shared its knowledge and deep understanding of the agricultural domain with GMEX Group.

 

For example, one of the biggest issues in agriculture are the inefficiencies created by what I call ‘bad middlemen’ in the system. Good intermediaries are of course necessary, particularly when you consider the sheer number of smallholder farmers as a percentage of the population in Malawi and other African countries, so there remains a need to provide an aggregated supply. But the inherent lack of transparency also results in farmers not being guaranteed a fair price – they simply don’t have the information flow to know what the right price is. Good intermediaries can also act as aggregators to collect and supply produce from the farm gate (as many smallholder farmers do not have access to transport) and provide farmers with fairer prices. This allows smallholders to increases their income, which in turn enables them to access vital inputs such as fertiliser, pesticides and seeds.

 

Reaping the benefits

 

FinComEco is already tackling many of these issues head-on, such as through our successful initiative utilising mobile technology to provide real-time market updates and pricing information from the exchange direct to the farmer’s phone. This in turn is combined with improvements in physical infrastructure including warehousing and transportation working with partners. These changes are already reaping results. In our first year of operation during 2016, ACE has seen substantial benefits delivered to smallholder farmers with an average 31% increase in income from use of warehouse receipts and better price transparency with 47,000 farmers having the ability to receive the latest market prices on their mobile phones. ACE financed nearly $10 million worth of receipts last year, but if they had adequate financing in place they could have achieved ten times that. This year, ACE and GMEX Group have launched a module which allows the trading of those receipts, either directly by farmers but also intermediaries and others, including the banks. This in turn will ultimately provide farmers with better and cheaper access to finance.

 

Since having proven the strength of our concept in Malawi, we can readily apply and adapt this knowledge through our FinComEco initiative wherever there is a need. We are currently engaged in discussions to deploy this initiative in 12 other African countries, with more to follow. FinComEco aims to become akin to an ‘App Store’ for agriculture in Africa and other developing regions. We are achieving this by matching exchange trading capability – including derivatives – to physical growers, while adding additional value through enabling manufacturing, support services and delivery adding to local employment. What we’re achieving in Malawi, and soon in other countries throughout Sub Sahara Africa as well, is a holistic supply-to-demand chain, with the exchange at the heart of it all. These initiatives are already having a positive impact on smallholder farmers in Malawi including empowerment of women, their families’ prospects, the growth of their communities – and ultimately improving food security in the country as a whole.

 

ENDS