R.J. O'Brien Partners with Phlo Systems to Revolutionize Commodity Trading Technology

R.J. O'Brien and Phlo Systems Forge Strategic Partnership

In an important development in the world of financial trading, R.J. O'Brien & Associates (RJO), the oldest independent futures brokerage firm in the United States, has joined forces with Phlo Systems, a cutting-edge provider of digital solutions for commodity trading. This collaboration, announced on February 11, 2025, marks a significant milestone as it includes an equity investment by RJO in the London-based Phlo Systems. Although the terms of the investment remain under wraps, the implications of this partnership are far-reaching.

This partnership represents the first tangible outcome of RJO's Technology Partnership Initiative launched last year, which aimed to foster collaboration and innovation in the technology sector related to financial and commodity markets. RJO has long recognized the critical role technology plays in these spheres, and this strategic alliance with Phlo Systems is a testament to that commitment.

Tim Geannopulos, a veteran in financial markets technology, has acted as a consultant to RJO's Executive Committee and Board as part of this initiative. He helped facilitate connections with various technology solution providers during RJO's inaugural Technology Partnership Forum held in February 2024. The upcoming second forum is scheduled to take place later this month, further showcasing RJO's dedication to enhancing technology solutions in the financial sector.

The collaboration with Phlo Systems is not just a financial investment but a strategic maneuver aimed at integration. RJO plans to incorporate Phlo Systems' advanced software solutions into its Hrvyst agricultural technology platform. Phlo Systems brings its suite of products, including tradePhlo, opsPhlo, and finPhlo, all designed to streamline the trading processes, compliance, and financial management for commodity traders. With its emphasis on utilizing emerging technologies like Artificial Intelligence (AI) and blockchain, Phlo Systems is set to revolutionize how commodity trading is conducted.

Brad Giemza, RJO's Managing Director and Chief Risk Officer, emphasized the significance of this partnership, stating, "Our Technology Partnership Initiative reflects RJO's commitment to leveraging cutting-edge technology to drive value and enhance offerings for our brokers and clients. As the global commodity markets continue to evolve, technology plays a more critical role than ever."

Giemza added that integrating Phlo Systems with RJO’s Hrvyst unit would provide modern solutions tailored to meet the needs of clients in the commodity trading arena. This alignment with Phlo's advanced platform is poised to boost decision-making capabilities, streamline compliance processes, and lower operational costs for RJO's clients.

Saurabh Goyal, the CEO of Phlo Systems, expressed enthusiasm over the newly formed partnership. He articulated that being associated with R.J. O'Brien not only boosts Phlo’s credibility in the industry but also infuses the necessary capital to expedite their growth plans. Goyal foresees this coalition unlocking immense value for both companies' customers.

RJO’s Hrvyst platform, designed for grain marketing, allows stakeholders in the commercial grain sector to manage their financial risks efficiently and connect their operations with the futures markets seamlessly. This user-friendly, cloud-based solution stands out for its ability to digitally optimize grain ownership and risk management through automated hedging.

Founded in 1914, R.J. O'Brien has consistently demonstrated its leadership in the financial trading space, catering to over 80,000 clients globally, including institutional, commercial, and individual clients alongside a network of approximately 300 introducing brokers. Their recognition in the field is underscored by multiple accolades, including the FOW International Award for Non-Bank FCM of the Year for five consecutive years.

On the other hand, Phlo Systems has been making significant strides in providing SaaS solutions across various sectors of commodity trading, trade finance, and compliance, leveraging AI and blockchain technologies to enhance its platform offerings. As both companies move forward together, this partnership is set to redefine the landscape of commodity trading technology, favoring efficiency, security, and innovative practices that benefit all constituents involved.

Overall, this strategic partnership is a promising step towards enhanced collaboration in the financial technology sector and reflects both companies' commitment to lead in the digital transformation of commodity trading services.