Many commodity trading firms still rely on custom-built trading platforms developed years ago. While these in-house systems may feel tailored to the firm’s operations, they carry hidden costs that often outweigh their benefits. For CIOs, understanding these costs is essential to deciding whether to continue maintaining legacy solutions or modernize with external help.

One major issue is talent scarcity. Platforms built in C# .NET or older frameworks often require specialized skills that are increasingly difficult to hire. Recruiting and retaining developers who can maintain outdated systems can be more expensive than the actual platform itself. At the same time, these systems are difficult to integrate with modern tools like Databricks, Snowflake, or Azure cloud services, slowing innovation.

Operational risks are another cost. Legacy systems are more prone to outages, security vulnerabilities, and compliance gaps. These risks directly impact traders’ ability to execute deals quickly and safely. Upgrading or re-platforming is often postponed due to the burden on internal IT teams already stretched thin with daily support and compliance reporting.

Staff augmentation provides a way forward. By bringing in external specialists skilled in both legacy technologies and modern platforms, CIOs can stabilize existing systems while gradually modernizing. Augmented teams can handle integration projects, migrate data to Snowflake, or build APIs that connect .NET systems to cloud-based analytics. This ensures innovation without putting trading operations at risk.

The true cost of in-house trading platforms is not just financial – it’s the opportunity cost of slow innovation. CIOs that augment their teams gain the agility to modernize while maintaining continuity, turning a liability into a competitive advantage.