Hedging Solutions
We Make Derivatives
Overview
Marex Hedging Solutions helps corporations hedge their risk on the volatility of commodity and currency prices.
We have a bespoke risk management offering based on the following 4 pillars:
• An OTC bilateral relationship
• A large choice of Commodity underlyings in Agriculture, Energy & Renewables, Metals and Currency pairs
• An access to a complete spectrum of risk management solutions from listed look-a-likes to tailor-made and innovative pay-outs
• Under a Legal and Credit framework suitable for Hedgers
We are located in London (HQ), Campinas, Chicago, Houston,Miami, Minneapolis, Montreal, Paris, Singapore, and Sydney.
Established in 2017
with a team of 55*.
*as at February 2023.
Why us?
Rating: Investment Grade BBB
Standard & Poor's Global Rating, Marex Financial, Marex Group's primary
operating company and acts as principal.
(Source: S&P Global, June 2022)
Derivative Market Leader
Part of the Marex Group, a diversified global financial services platform. Providing clients with coverage in global Commodities such as agriculture, metals and energy, and Financial (Forex and interest rate). Extensive range of services and market access and analysis.
Balance Sheet Allocation
Over $300M** credit delivery.
Specialised Offering
Exotic OTC derivatives with 18** dedicated traders.
Adaptable Team
Dedicated team who explores and trades new products, whilst remaining nimble.
Market Knowledge
**as at January 2023.
Markets
We are a specialist producer and distributor of customised OTC derivatives, providing clients with coverage in agricultural, energy, metals, and currency markets.
We provide our clients with an extensive range of services and market access and analysis.
We use the latest technology to deliver these products to customers around the world through our AGILE platform.
Agriculture
We combine deep industry knowledge, service, structuring capabilities and long-term commitment to the agricultural markets globally.
This expertise extends right across the whole value-chain of agricultural production and consumption – from soil to supermarket – providing our clients with access to a unique understanding of the market.
Our agricultural commodities expertise include grains and oilseeds, sugar, coffee and cocoa, cotton, lumber, dairy, meat and livestock, freight and more.
Our clients include farmers, cooperatives, traders, exporters, refiners and consumers.
Energy
We have long-standing financial services expertise across the energy universe with a dedicated focus on this complex industry.
Leveraging the expertise of our trading presence in oil and products, natural gas, power, carbon emissions and coal products, we create highly effective and bespoke risk management solutions for clients across the energy universe.
Our clients include explorers, producers, transporters, refiners, marketers, airlines, utilities and shipping companies, to which we provide tailored risk management solutions.
Metals
We utilise the leading market presence of the Marex Group as one of the biggest metals brokers in the world and a category-1 member of the London Metals Exchange.
We create tailored hedging products that augment the instruments available on the various metals markets around the world, allowing clients to manage their risk more precisely.
Our clients include miners, refiners, transporters, traders through to consumers such as electronics manufacturers.
Currency
Virtually every single commodity business has some degree of exposure to currency movements. As geopolitics have an increasing impact on currency volatility, hedging this exposure is increasingly a vital component of any hedging programme.
We provide the ability to hedge your currency exposure alongside your commodity price risk by utilising our access to a multitude of top-tier bank and non-bank liquidity providers.
We provide currency hedging services across a diverse set of currencies, from all the major & minor currencies through to the exotic currencies of emerging markets.
Our Product Suite
While there are very few limits to the potential for tailored hedging, we have organised our hedging solutions into four primary categories for better clarity and understanding.
Participation
Participate one-to-one in the underlying market in the underlying contract currency or your local currency.
Typical Participation tools:
• Futures
• Vanilla Swaps
• Composite Swaps
• NDFs
• Smart Swaps
• Mini-Futures
• Average Rate Swaps
Protection
Effective mitigation against adverse or unexpected market moves, which could otherwise damage the business.
Tailored options can be cheaper than listed equivalents without losing the protection required.
Typical Protection tools:
• Vanilla Options
• Composite Options
• FX Options
• Digital Options
• Barrier Options
• Smart Options
• Asian Options
• Early Expiry Options
Price Improvement
Achieve a significantly better purchase or sale price compared to the market price, in exchange for less certainty in volume executed.
Typical Price Improvement tools:
• Accumulators
• Composite Accumulators
• Spread Accumulators
• Smart Accumulators
• Ladders
• Funded Swaps
• Funded Options
• Funded Accumulators
Range Extraction
Extract value from range-bound markets, such as refineries looking to widen processing spreads.
These can be tailored to give more appropriate risk profiles than listed alternatives.
Typical Range Extraction tools:
• Range Accruals
• Pivot Accumulators
• Cash Accruals
We provide the products to effectively manage your commodity price risk, as well as the tools to proactively monitor the hedge effectiveness of your portfolio.
AGILE, our trading platform
AGILE is a full-service platform for managing your commodity and currency hedging portfolio with Marex Solutions. Build using cutting edge technology, and delivered to you as part of our comprehensive hedging solutions offering.
As a specialist manufacturer and service provider of customised risk management solutions, our technology platform ensure clients and partners enjoy full transparency and control throughout the hedging life-cycle.
Powerful
The AGILE platform fives you a powerful set of tools to manage your hedging life-cycle.
Explore and price new trade ideas in real-time. Execute at your desired level. Monitor your hedging portfolio and perform complex scenario analysis on your portfolio.
Efficient
Save time on your hedging activity.
By having everything you need to manage your hedging portfolio in one place allows you to react as quickly as possible, with full knowledge of how your portfolio will perform.
Manage your hedging life-cycle, from pricing to analysis to a full transaction history, all in one platform.
Transparent
We believe that as the industry matures clients will come to expect full transparency on their hedging portfolio.
We deliver on this belief by giving you complete visibility of how your portfolio will evolve under various market conditions.
AGILE gives you total transparency on your hedge effectiveness by putting you in control of your analysis.