Hedging

At Fintec Group we have a number of institutional clients that operate on a periodic basis protecting themselves against volatility in commodity prices.

Hedgers look to price the purchase or sale of raw goods, currency and interest rate exposure, in order to stabilize their margins and protect themselves from market volatility.

For example, producers of agricultural commodities and metals use the futures markets, through various exchanges to “lock in” a specific profit and /or operating margin, eliminating part of the volatility and reducing risk. Conversely, consumers of those same commodities will hedge their inventories and fix their price, as well as protect their merchandise held in inventory until it is priced to the final end user, or transformed into the specific product they are selling ( feed, dog food, oils, flour etc.).

Our consulting, research, and design team creates strategies that take into account the needs of our particular clients; bringing them up to speed with their specific market requirements. The hedge strategy in place is later managed by both the client and the Fintec team.

Fintec Group regularly executes on behalf of our clients, specialized transactions such as, Exchange for Physical (EFPs), Exchange for Swaps (EFFs) and  Against Actuals (AAs) through the Web ICE Platform. Those are all part of the daily tools which are available for hedging clients, which our brokers are fully acquainted and experienced with.

Both the geographical diversity and profile (banks, exporters, commercial buyers, agricultural producers) of our hedging clients stands as a testament of our excellence in service and unique understanding of the distinct commodity markets.

Learn more about how Fintec Group supports Professional Hedgers, contact Fintec Group.