Foreign Exchange and Commodities
|
|
- Joan Harper
- 8 years ago
- Views:
Transcription
1 Foreign Exchange and Commodities securities
2 About Pareto securities Leading investment bank with some 320 employees within bonds, equity and asset brokerage, research and corporate finance Offers trading in most commodities through our Commodities Sales Traders Our FX dealers have more than 30 years experience in the FX market. Focuses on areas where Norway has its competitive advantage The acquisition of Öhman Fondskommisjon in Sweden and Finland strengthens our Nordic presence #1 ranked IPO manager on Oslo Børs, having managed more than 80 IPOs and listings since 2004 corresponding to a market share of ~40% #1 player in the Norwegian primary and secondary high yield bond market Strong research team covering ~125 companies on Oslo Stock Exchange and ~75 companies on Stockholm Stock Exchange, as well as international coverage in certain key sectors such as Oil Service, E&P and Shipping Offices in Oslo, Stavanger, Bergen, Kristiansand, Trondheim, Stockholm, Malmø, Helsinki, New York, Singapore and Rio de Janeiro Part of the Pareto Group which also provides services such as shipbroking, project financing and asset management
3 why invest in COMMODITIES, FREIGHT AND ENERGY Both investors and corporations are finding that taking a financial position in an appropriate commodities market can provide healthy returns or work as good hedge. There are various reasons to why investors and corporations choose to invest in commodity prices. Risk Management A company may want to offset risks arising out of fluctuations in raw-material prices and will through Commodity Price Hedging benefit by reducing earnings volatility and be insured against accounting blow-ups and earnings restatements. For instance, if a shipping company fears that the price of bunker oil will increase over the next year, it can easily lock in the price of the bunker oil in the futures market, eliminating the risk of increased prices. Portfolio Diversification Generally, commodity prices are to a small extent correlated with other assets, due to different drivers than in, for instance, debt and equity (however, exceptions arise when investing in companies that are greatly influenced by commodity prices). In other words, one can reduce the total risk of a portfolio of stocks and bonds if adding commodity investments. Substitute to stocks, hedge of a single stock, spread-trading Some companies are greatly influenced by commodity prices. For instance, oil stocks tend to fluctuate with the oil price, shipping stocks are influenced by freight rates etc. Investors can benefit from investing in commodity prices alongside stocks for hedging purposes. Others prefer a pure play on, for instance, the oil price and may trade oil price futures instead of, or in addition to, oil companies. Investments Many investors have a view on the short-, mid- or long-term price action in a commodity, for instance based on research concluding that a commodity is undervalued in the futures market.
4 What is commodity derivaties To invest in commodity prices, one must first understand how the products are put together. A commodity derivative is a security whose price is derived from the price of an underlying commodity, such as brent oil, natural gas, gold, aluminium etc. Put simply, a derivative is an agreement between two parties that specifies conditions under which payments are to be made between the parties. For instance, this can be an agreement to buy 10,000 barrels of brent oil at 105$/bbl at an agreed date in the future. All the contracts we offer are financially settled, so if the oil price is 120$/bbl at maturity, the buyer will receive a pay-out of $150,000. The most relevant types of derivatives would be: Forwards/futures Contracts to buy or sell an asset on or before a future date to a price agreed today. The contracts are financially settled, based on the price on the day of maturity or when the position is closed. Options Contracts that give the owner the right, but not the obligation, to buy (call option) or sell (put option) an asset in this case the right to buy/sell a certain volume at a fixed price in the future. For instance, if a company is worried that they cannot handle an oil price below 90$/bbl, they could buy an option to sell their oil at 90$/bbl in the future. If the oil price goes below, they can still sell at 90$/bbl. If the oil price stays above, the option is worthless at maturity, but the company will gain from a higher oil price in the spot market. Derivatives can also be combined, enabling an investor or a corporation to cap the downside and opening parts of the upside, forming a price range etc. When trading in commodity derivatives with us, Pareto Securities would be the counterparty in the transactions. As a client you would not need to become a member of different clearinghouses and exchanges. When trading with us, Pareto Securities would be the name in the market.
5 ABOUT THE products we offer Pareto Securities offers a wide spectre of commodity derivatives, where some requires a certain volume to be traded. Below follows a list of products we can offer to our clients, including, but not limited to: Oil and Gas Fuel Freight Iron Ore Precious Metals Industrial Metals Salmon Agriculture Fertilizer On the following pages, we will describe the different products in more detail.
6 about oil and gas A number of investors have a view on oil and gas prices. Many are exposed oil and gas through long or short positions in equity indices partly correlated with the oil price (like OSEBX) or in companies with a significant oil and gas price exposure. By trading oil and gas futures directly, investors will have a pure exposure to oil and gas prices, and can, thus, isolate themselves from other risk factors like individual companies solidity and management. Sometimes opportunities also arise when, for instance, an oil dependent stock seems undervalued in comparison to the oil price. A meaningful response would in such cases be to go long the oil company and short the oil price. Oil and gas futures can also be used to offset parts of the oil price-related risk when choosing to invest in an oil company, for instance by going long the oil company and at the same time short oil futures. Pareto Securities has always focused on sectors where Norway has had a competitive advantage, and has build up an extensive research capacity on the oil and gas markets. Several oil and gas products dominate the international markets, but the following pages will introduce three of the main oil and gas products traded in the futures markets. 160 Brent Crude and WTI USD/bbl Brent Crude WTI /08/ /10/ /12/ /02/ /04/ /06/ /08/ /10/ /12/ /02/ /04/ /06/ /08/ /10/ /12/ /02/ /04/ /06/ /08/ /10/ /12/ /02/ /04/ /06/ /08/ /10/ /12/ /02/ /04/ /06/ /08/2012
7 about oil and gas brent crude Brent Crude is the biggest of the many classifications of crude oil, such as Brent Crude, Brent Sweet Light Crude, Ekofisk and Forties, and is sourced from different oil fields in the North Sea. Brent Crude is used to price 2/3 of internationally traded oil supplies. Brent is a light and sweet crude oil, though not as light and sweet as WTI. Like other commodities, the fundamental pricing in the Brent Crude Oil derives a number of factors, such as: Supply/Demand: Supply from the North Sea region will have the most impact on prices, but OPEC supply policies will also be of importance. On the demand side, Brent is exposed to growth rates in Europe, the US, China and other key oil consuming regions. Middle East: Political instability in the Middle East has a great impact upon the Brent price, and can be seen as a fear premium upon the price. Risk Sentiment: In a world with low interest rates, investors seek returns in hard assets like oil. This may increase the oil price s correlation with general risk sentiment in the market. Inflation Hedging: Oil prices correlate with inflation and investing in oil prices can therefore serve as a hedge against inflation. Trading Brent Crude is priced in USD per barrel. One future contract is 1,000 barrels.
8 about oil and gas wti West Texas Intermediate (WTI) is a benchmark crude oil and is considered light and sweet. The quality has been sought after over the years; with lower sulphur content, easier is the refining process. Traditionally, WTI has been the main benchmark and Brent Crude has been trading at a discount to reflect quality. However, supply disruptions, storage challenges at Cushing (WTI pricing point) and the demand for middle distillates from Asia, WTI has lately been trading on a discount to Brent. The WTI futures contract on Nymex is still, however, the most actively traded commodity in the global futures markets. The price drivers are similar to those of Brent Crude, but WTI is more dependent on supply from the Midwest and Gulf Coast regions in the US and upon the economic growth in the US relative to the world. Trading WTI is priced in USD per barrel. One future contract is 1,000 barrels.
9 about oil and gas natural gas (henry hub) Natural Gas is colourless, odourless and energy-rich, consisting mainly of methane. It can also contain co-products like ethane, propane and butane, and these are called natural gas liquids (NGLs) when removed from the gas stream. Henry Hub is a point on the pipeline system in Louisiana, USA, and works as the main pricing point for natural gas futures in the North American natural gas market. Natural Gas prices have traditionally been anchored in a long-term relationship with crude oil prices, but short- to medium-run dynamics can result in considerable variation between the two. In addition to demand from the American and global economic growth, other factors may affect the supply/demand relationship: Weather and seasonality: Low winter temperatures will drive up residential and commercial demand and, thus, natural gas prices. There is typically more demand for natural gas over the winter. However, high summer temperatures will have the same effect, through extensive use of air condition in American households. Coal-to-gas switching: Falling natural gas prices have led utilities to shift their power generation from coal to gas. Storage and production disruption: Higher gas storage levels indicate increased availability of gas supply and will suppress prices and vice-versa. Regulation and lease provisions: Drilling to hold onto contracting provisions such as held-by-production leaseholds has led to over-supply and declining prices. More restrictive regulation of hydraulic fracking or political initiatives to increase the US LNG export trade could lead to higher prices. Trading Natural Gas is priced in USD per mmbtu (million British thermal units). One future contract is 10,000 mmbtu.
10 about fuel Besides investors having a view on fuel prices, corporates can also benefit from fuel derivatives. There are several benefits of hedging the fuel price risk, be it bunker oil, gasoil, diesel fuel or other fuel variants. By hedging the fuel price through fixed price swaps or options, corporations will experience stabilised cash flows and protected margins. Fuel products are normally trading in relation to brent crude oil. Examples of fuel products we offer: Bunker Oil Priced in USD per metric tonne. Settled monthly against the arithmetic average of Platt s assessment. Gasoil Priced in USD per metric tonne. Jet Fuel Priced in USD per metric tonne.
11 about freight As in other commodities markets, the relationship between supply and demand determines most of the price action in the freight market. FFAs (Forward Freight Agreements) can be used for investments or to offset price risks in the freight markets. Among the natural buyers of FFAs, we see mining companies, end users or co-operations with excess cargoes. Sellers would similarly be ship-owners and co-operations with excess tonnage. Investment banks, hedge funds and investors do also provide liquidity to the market place. The freight derivatives market was created to enable market actors to minimize the future risks of shipping goods. FFAs are based upon the pricing from the London-based Baltic Exchange and Platts. For instance, the Baltic Dry indices prices various dry bulk routes, such as common routes for capesize, supramax, panamax and handy-size. Pareto Securities offers trading in both the dry bulk market and the tanker market, and is at the forefront when it comes to trading execution. Baltic Capesize TC Avg USD/Day /08/ /10/ /12/ /02/ /04/ /06/ /08/ /10/ /12/ /02/ /04/ /06/ /08/ /10/ /12/ /02/ /04/ /06/ /08/ /10/ /12/ /02/ /04/ /06/ /08/ /10/ /12/ /02/ /04/ /06/ /08/2012
12 about industrial and ferrous metals Industrial metals Industrial metals are non-ferrous metals, such as aluminium, copper, lead, zink, nickel and tin. The commodity exchanges are dominated by trading in aluminium, copper and zinc contracts. The production of aluminium is greater than the output of all other industrial and precious metals combined, if we rule out steel production. One key price driver over the last decade has been the demand from China. Iron Ore Ferrous metals contain an considerable amount of iron, such as iron ore. Iron Ore is one of the most well supplied of all metals. Ideally, iron ore only contains iron and oxygen, but the purity of iron ore is dependent on the presence of silica, phosphorus, aluminium and sulphur. As the primary input into iron and steel production, it is one of the most consumed commodities in the market. The iron ore price is depended on iron content and moisture levels. Pareto Securities offers trading in both iron ore and steel products. Trading Priced in USD per metric tonne. When trading iron ore futures, the price is based upon the TSI 62% Fe index.
13 about precious metals Precious metals are rare metals of high value, such as gold, silver and platinum group metals (platinum, palladium, iridium, osmium, ruthenium, and rhodium). They have industrial uses, in addition to their uses in art and jewellery. For gold, 52% of the total gold consumption is accounted for by the jewellery industry. Silver is, on the other hand, relatively more important to the industry sector. The prices of such metals are driven by their practical use, but also by investments. Gold, for instance, is widely recognised as a safe haven. Another feature that distinguishes precious metals, and most importantly the gold market, from other metals, is that annual mine production is less than the total above ground stocks. For gold, the mine production is around 10% of the total above ground stock. This implies that the gold forward curve tends to be in contango Gold prices USD/oz /07/ /09/ /11/ /01/ /03/ /05/ /07/ /09/ /11/ /01/ /03/ /05/ /07/ /09/ /11/ /01/ /03/ /05/ /07/ /09/ /11/ /01/ /03/ /05/ /07/ /09/ /11/ /01/ /03/ /05/ /07/2012
14 about agricultural products Agricultural products can broadly be grouped into fibers, foods, fuels and raw materials. When it comes to agricultural products, the global production is dominated by the US and China. Their combined output of important agricultural products such as corn, wheat, sugar and soybeans is double that of their rivals in this segment (India and EU). However, the US is an important exporter of agricultural products, while China is becoming dependent on agricultural imports. Corn and wheat products dominate world production. Wheat production has declined over the last years, while production of corn has increased. Other agricultural products are other grain and oilseed products, lumber and other forestry products, dairy products and soft products, such as cocoa, coffee, cotton and sugar.
15 about Salmon Norway is a major salmon exporter, and Norwegian salmon farmers benefit from rising salmon prices. Similarly, companies buying salmon, such as European super market chains and processors, would want to lock in a low price when opportunities arise. As with other commodity markets, the market actors use the futures market to protect their margins. Pareto Securities offers solutions and advice on how to hedge exposures to the salmon markets. Investors in salmon companies trading on, e.g., Oslo Stock Exchange can also benefit from trading salmon futures. This can provide investors with a direct exposure to salmon prices, and can work as both an investment and a hedge. By going short (long) the salmon prices, while at the same time going long (short) stocks with salmon price exposure, an investor can effectively offset parts of the risk associated to fluctuations in the salmon prices.
16 about Foreign exchange Pareto Securities offers several products for trading in foreign exchange. Choose between spot deals, forward contracts, currency swaps or FX option strategies. Our solutions enable our clients to protect themselves from adverse exchange rate movements in order to protect their margins. Pareto Securities covers all time zones and offers competitive rates when trading in all major currency pairs. We also provide our customers with market updates and proactive recommendations concerning currency movements and hedging strategies. Our dealers have more than 30 years of experience in the FX market. They have experience with large FX transactions with minimal rate movements, in-debt know-how on sophisticated FX products, solid macro research experience and acknowledged expertise in trading strategies.
17 about fx products We offer competitive spreads and excellent customer follow-up services in all FX markets, and can offer products within the following categories: Spot Transactions Sell or buy a given amount of foreign currency at a pre-agreed exchange rate with delivery (usually) two days later. Forward Transactions Sell or buy a given amount of foreign currency at a pre-agreed exchange rate on a future date. Can be used to eliminate exchange rate risk. FX Swaps Simultaneous purchase and sale of one currency for another with two different value dates. FX Options Derivative instrument that gives you the right, but not the obligation, to exchange one currency into another currency at a pre-agreed rate on specified date. Options solutions can potentially improve your exchange rate fixings and at the same time protect you against a worst case scenario.
18 securities FX and Commodities trading desk: Pareto Securities AS, Dronning Mauds gt. 3, Postboks 1411 Vika, N-0115 OSLO ,
Commodities Awareness Programme. Asia. Maycroft
Commodities Awareness Programme Asia Maycroft Training objectives The target audience for this training are the marketing or sales people of the bank. These people have direct contact with (potential)
More informationGuide to managing commodity risk
Guide to managing commodity risk October 2012 ISBN: 978-1-921742-33-0 CPA Australia Ltd ( CPA Australia ) is one of the world s largest accounting bodies representing more than 139,000 members of the financial,
More informationMechanics of the Futures Market. Andrew Wilkinson
Mechanics of the Futures Market Andrew Wilkinson Risk Disclosure Options and Futures are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading
More informationCOMMODITIES Precious Metals Industrial (Base) Metals Commodities Grains and Oilseeds Softs affect supply curves Exotics Standardization Tradability
COMMODITIES Commodities: real and tangible assets that are elements of food (agricultural products like wheat and corn), fuel (oil, gas), metals (ex: copper, aluminum, gold, tin, zinc), and natural resources
More informationShort-Term Energy Outlook Market Prices and Uncertainty Report
February 2016 Short-Term Energy Outlook Market Prices and Uncertainty Report Crude Oil Prices: The North Sea Brent front month futures price settled at $34.46/b on February 4 $2.76 per barrel (b) below
More informationWorkshop Agenda Certified Commodities Analyst OBJECTIVE KEY AREAS FOCUS WHO SHOULD ATTEND. About your trainer UNIQUE MARKETS SPOT COMPLEX
markets are one of the more diverse markets in the capital markets arena and feature in investment portfolios in an increasing manner although traditionally they are traded in physicals taking in the whole
More informationTRADING FUTURES ON THE SAXOTRADER PLATFORM
TRADING FUTURES ON THE SAXOTRADER PLATFORM Saxo Capital Markets Tel: +65 6303 7788 Web Site: www.saxomarkets.com.sg 1 TRADING FUTURES ON THE SAXOTRADER PLATFORM OPEN DEMO OPEN LIVE WORLDWIDE INVESTMENT
More informationOil prices tumble as speculative bubble burst
Oil prices tumble as speculative bubble burst The financial and sovereign debt crisis continues to set the agenda for almost every investment decision being taken at the moment. During May the crisis in
More informationTHE GLOBAL SOURCE FOR COMMODITIES KOCH SUPPLY & TRADING
THE GLOBAL SOURCE FOR COMMODITIES KOCH SUPPLY & TRADING KOCH SUPPLY & TRADING: CAPABILITIES Refined Products Crude Oil Global crude oil markers (WTI, Brent, Dubai) and grades of oil priced off these markers
More informationThe Growing Commodity Trading Market in Asia. Rebecca Brosnan Head of Asia Commodities 22 April 2015
The Growing Commodity Trading Market in Asia Rebecca Brosnan Head of Asia Commodities 22 April 2015 I. HKEx s Entry into Commodities Vertical Value Chain HKEx Group Business Strategy Horizontal Asset Classes
More informationINTRODUCTION. Production / Extraction of Oil. Distribution & Sale to refined products to end users
CRUDE OIL INTRODUCTION Crude oil holds prominence as input to the global growth engine since it is the most important source of energy accounting for more than two fifth of the global energy consumption.
More informationHow To Understand The Impact Of Price Risk On Commodity Trading
Global Commodities Forum Palais des Nations, Geneva 23-24 January 2012 Price risks & Volatility: Impact on Commodity Trading Companies By Mr. Samir Zreikat, Director, Dealigents Sàrl, Geneva "The views
More informationFutures Trading: The Way to Go?
Futures Trading: The Way to Go? Terence Lee Private Client Service 25/02/11 Disclaimer The information contained in these course materials provided is the option of the Course Trainer and not Phillip Futures.
More information1 Regional Bank Regional banks specialize in consumer and commercial products within one region of a country, such as a state or within a group of states. A regional bank is smaller than a bank that operates
More informationINTRODUCTION TO COMMODITY TRADING
INTRODUCTION TO COMMODITY TRADING Capademy Tutorial Series Option Banque Training Series Vol. 1 Commodities are the raw ingredients or components of almost everything we consume or use in our everyday
More informationThe interplay of physical and financial layers in today's oil markets
Master of Advanced Studies in International Oil and Gas Leadership The interplay of physical and financial layers in today's oil markets Giacomo Luciani IEA Energy Training Week Paris, April 5, 2013 The
More informationOil and Gas Prices. Oil and Gas Investor Summit London 17th-18th June 2014
Oil and Gas Prices Oil and Gas Investor Summit London 17th-18th June 2014 Oil Price Drowning in oil Economist, March 1999 $10 oil might actually be too optimistic. We may be heading for $5. Crude touches
More informationWhat drives crude oil prices?
What drives crude oil prices? An analysis of 7 factors that influence oil markets, with chart data updated monthly and quarterly Washington, DC U.S. Energy Information Administration Independent Statistics
More informationAnnuity Linked TVI Index. Explained
Annuity Linked TVI Index Explained 1 Key Features of the Annuity Linked TVI Index The Index aims to deliver positive returns while moderating volatility regardless of market direction. The Index goal is
More informationTopic 9: Energy Pricing and Trading in Financial Markets. () Global Energy Issues, Industries and Markets 1 / 41
Topic 9: Energy Pricing and Trading in Financial Markets () Global Energy Issues, Industries and Markets 1 / 41 Introduction Energy prices determined in many ways E.g. long term contracts for natural gas
More informationIntercontinentalExchange. Credit Suisse Financial Services Forum February 7, 2008
IntercontinentalExchange Credit Suisse Financial Services Forum February 7, 2008 Forward-Looking Statements Forward-Looking Statements This presentation may contain forward-looking statements made pursuant
More informationEnergy Option Contract. Product Disclosure Statement
Energy Option Contract Product Disclosure Statement Issued by: Westpac Banking Corporation ABN 33 007 457 141 Australian Financial Services Licence Number: 233714 Dated 10 June 2008 Contents Important
More informationXetra. The market. The leading trading platform. A simple investment in commodities, volatility or currencies
Xetra. The market. The leading trading platform for ETCs & ETNs A simple investment in commodities, volatility or currencies 2 3 Commodities can be used to reduce the volatility of a portfolio or increase
More informationAGRICULTURAL COMMODITY What you need to know
AGRICULTURAL COMMODITY What you need to know Product Disclosure Statement Issue date: 12 March 2014 Issued by: Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 You should read all sections
More informationInvesco Variable Insurance Fund. Invesco V.I. Balanced-Risk Allocation Fund A balanced approach
Invesco Variable Insurance Fund Invesco V.I. Balanced-Risk Allocation Fund A balanced approach Management team Invesco V.I. Balanced-Risk Allocation Fund is managed by the Invesco Global Asset Allocation
More informationPhysical Natural Gas
Risk Management 101 Physical Natural Gas Gas Measurement Mcf Thousand cubic feet Volumetric measurement MMBtu Million British Thermal Units Heating value measurement of gas based on a standard heat value
More informationPlatts Oil Benchmarks & Price Assessment Methodology. October 4, 2012 - London
Platts Oil Benchmarks & Price Assessment Methodology October 4, 2012 - London Agenda Introduction and the role of benchmarks Platts price discovery process Global commodity markets outlook Platts MOC liquidity:
More informationCAPITAL MARKETS DAY DRY CARGO
CAPITAL MARKETS DAY DRY CARGO THE PREFERRED PARTNER IN GLOBAL TRAMP SHIPPING UNIQUE PEOPLE, OPEN MINDED TEAM SPIRIT, NUMBER ONE New York City, 22 January 2008 1 GUIDANCE AGENDA Norden Dry cargo Organization
More informationETPs for private investors
ETPs for private investors Simple products. Sophisticated strategies. ETPs Exchange Traded Products (ETPs) such as Exchange Traded Commodities (ETCs) and Exchange Traded Notes (ETNs) are listed exchange
More informationWhat does the Dow Jones-UBS Commodity Index track?
Dow Jones-UBS Commodity Index FAQ What does the Dow Jones-UBS Commodity Index track? The Dow Jones-UBS Commodity Index is an index tracking the performance of a weighted group of exchange-traded futures
More informationGLOBAL COMMODITY TRADING GR ADUATE PROGR AMME
GLOBAL COMMODITY TRADING GR ADUATE PROGR AMME WE SOURCE, STORE, BLEND AND DELIVER ESSENTIAL RAW MATERIALS AND COMMODITIES. 2 Future Talent Trafigura is one of the world s leading independent commodity
More informationCommSeC CFDS: IntroDuCtIon to CommoDItIeS
CommSec CFDs: Introduction to Commodities We re here to help To find out more, call us on 1300 307 853, from 8am Monday to 6am Saturday, email us at cfds@commsec.com.au or visit our website at commsec.com.au.
More informationForward and Futures Markets. Class Objectives. Class Objectives
Forward and Futures Markets Peter Ritchken Kenneth Walter Haber Professor of Finance Case Western Reserve University Cleveland, Ohio, 44106 Peter Ritchken Forwards and Futures 1 Class Objectives Buying
More informationExchange-traded Funds
Mitch Kosev and Thomas Williams* The exchange-traded fund (ETF) industry has grown strongly in a relatively short period of time, with the industry attracting greater attention as it grows in size. The
More informationKCBOT: The Kansas City Board of Trade was formally chartered in 1876 and trades hard red winter
Section I Introduction to Futures and Options Markets Learning objectives To know major agricultural futures exchanges To see the types of commodities traded To understand common characteristics of futures
More informationBrokerage/ E-trading. www.company.com
Brokerage/ E-trading OSYS & World Best Voted Trading Platform OFFER: Cyprus Company Set Up & Brokerage Account To: Trade Tax Free on International Markets Act as Director of the Company and Repatriate
More informationCommodity Trade Finance CAIA Zurich. February 2013
Commodity Trade Finance CAIA Zurich February 2013 Contents Some statistics about world trade 03 Financing the commodity trade flows 06 Commodity trade finance : the market 08 Why invest in commodity trade
More informationInternational Swaps and Derivatives Association, Inc. Disclosure Annex for Commodity Derivative Transactions
International Swaps and Derivatives Association, Inc. Disclosure Annex for Commodity Derivative Transactions This Annex supplements and should be read in conjunction with the General Disclosure Statement.
More informationOPEC s One-Way Option: Investors and the Price of Crude Oil. Philip K. Verleger, Jr. PKVerleger LLC
OPEC s One-Way Option: Investors and the Price of Crude Oil Philip K. Verleger, Jr. PKVerleger LLC Theme After ten years, commodities have finally become a suitable investment class for pension funds.
More informationEEX Group Workshop 2015. Cleartrade Exchange. Cleartrade Exchange, an EEX company, part of Deutsche Borse Group
EEX Group Workshop 2015 Cleartrade Exchange Cleartrade Exchange, an EEX company, part of Deutsche Borse Group Regulated by the Monetary Authority of Singapore as a Recognised Market Operator (RMO) Agenda
More informationSHORT & LEVERAGED EXCHANGE TRADED PRODUCTS ETF SECURITIES EMPOWERING INVESTMENT IDEAS
AN ETF SECURITIES GUIDE TO SHORT AND LEVERAGED EXCHANGE TRADED PRODUCTS SHORT & LEVERAGED EXCHANGE TRADED PRODUCTS ETF SECURITIES EMPOWERING INVESTMENT IDEAS CONTENTS 01 02 03 04 05 06 07 08 09 INTRODUCTION
More informationChapter 3: Commodity Forwards and Futures
Chapter 3: Commodity Forwards and Futures In the previous chapter we study financial forward and futures contracts and we concluded that are all alike. Each commodity forward, however, has some unique
More informationManaging Shipping Risk in the Global Supply Chain The Case for Freight Options
Managing Shipping Risk in the Global Supply Chain The Case for Professor in Shipping Risk management Director, MSc Shipping, Trade & Finance Cass Business School email: n.nomikos@city.ac.uk Presentation
More informationPreparing for Changes in Market Design
Preparing for Changes in Market Design EMART Conference Didier Lebout, Strategy and Development Director Gazprom Marketing and Trading France Amsterdam, 21 November 2012 In this presentation GM&T Ltd:
More informationAn approach on how to trade in commodities market
An approach on how to trade in commodities market Last decade there emerged a new avenue for retail investors and traders to participate: this was the new modified electronic platform of commodity derivatives.
More informationCommodities not finding much traction despite USD weakness
Commodities not finding much traction despite USD weakness Commodities continued to show weakness into the second week of 2013 despite rising stock markets and a falling US dollar. Investors are generally
More informationCommodity Trading COMMODITIES
Commodity Trading COMMODITIES About us Enix Commodities s.r.o is a Commodity Trading investment firm founded in 2008 with the aim to manage discretionary investments for select investors in the energy
More information2015 Oil Outlook. january 21, 2015
MainStay Investments is pleased to provide the following investment insights from Epoch Investment Partners, Inc., a premier institutional manager and subadvisor to a number of MainStay Investments products.
More informationAlternative Asset Classes Page 1 ALTERNATIVE ASSET CLASSES: AN INTRODUCTION
Alternative Asset Classes Page 1 ALTERNATIVE ASSET CLASSES: AN INTRODUCTION PART OF SOUND PORTFOLIO MANAGEMENT IS DIVERSIFYING INVESTMENTS SO THAT IF ONE TYPE OF INVESTMENT IS PERFORMING POORLY, ANOTHER
More informationChapter 16: Financial Risk Management
Chapter 16: Financial Risk Management Introduction Overview of Financial Risk Management in Treasury Interest Rate Risk Foreign Exchange (FX) Risk Commodity Price Risk Managing Financial Risk The Benefits
More informationExchange Traded Commodities. Redefining the commodities marketplace
Exchange Traded Commodities Redefining the commodities marketplace ETCs removing the difficulties of gaining exposure to commodities. Introduction Exchange Traded Commodities Redefining the commodities
More informationResearch on the impact of the China (Shanghai) Pilot Free Trade Zone on the Chinese base metal commodity market. Name of Student: Jean Reinders
BERLIN SCHOOL OF ECONOMICS AND LAW Institute of Management Berlin (IMB) Research on the impact of the China (Shanghai) Pilot Free Trade Zone on the Chinese base metal commodity market Name of Student:
More informationCrude Oil: What every investor needs to know By Andy Hecht
Crude Oil: What every investor needs to know By Andy Hecht Crude oil is considered by many to be the most important commodity market in the world. The value of crude oil affects almost every individual
More informationShort-Term Energy Outlook Market Prices and Uncertainty Report
July 2014 Short-Term Energy Outlook Market Prices and Uncertainty Report Crude Oil Prices: After an upward move in mid-june, crude oil prices retreated close to previous levels. The North Sea Brent front
More informationWe See Opportunities in Commodities
We See Opportunities in Commodities March 22, 2014 by Bob Greer, Ronit M. Walny, Klaus Thuerbach of PIMCO Fundamentals and some recent data suggest that challenging trends for commodity investing may be
More informationGLOBAL COMMODITIES TRADING
GLOBAL COMMODITIES TRADING CONTENTS INTRODUCTION 3 Strategic Growth 5 Our History 6 Key Figures 8 A Global Business 13 APPROACH, CULTURE & VALUES 14 Our People 17 Risk Management 18 Compliance 19 HSEC
More informationSecurity Bank Treasury FX and Rates Hedging Division Gearing Up for External Competitiveness November 19, 2014. Treasury FXRH
Security Bank Treasury FX and Rates Hedging Division Gearing Up for External Competitiveness November 19, 2014 HEDGING, DERIVATIVES AND SPECULATION HEDGING Making an investment to reduce the risk of adverse
More informationThe entry of Private Equity into Shipping a Lender s perspective. Energy, Commodities and Transportation October 2013
The entry of Private Equity into Shipping a Lender s perspective Energy, Commodities and Transportation October 2013 ABN AMRO at a glance A leading Dutch bank with the majority of revenues generated by
More informationOutright Long/Short Speculation: Next time you are at a party and someone asks what you do for a living, tell them
Page 1 Next time you are at a party and someone asks what you do for a living, tell them you are a commodity trader. You are likely to get a look back that conveys a sense of - that sounds impressive,
More informationFutures Contract Introduction
Futures Contract Introduction 1 The first futures exchange market was the Dojima Rice exchange in Japan in the 1730s, to meet the needs of samurai who being paid in rice and after a series of bad harvests
More informationImproved US data halts gold while supporting oil
Improved US data halts gold while supporting oil The first week of the last quarter brought a host of important economic data culminating with the US unemployment report which turned out to be better than
More informationThe Potential of Hong Kong s Commodity Derivatives Market
Value Partners Center for Investing The Potential of Hong Kong s Commodity Derivatives Market February 18, 2014 Sponsored by: The Potential of Hong Kong s Commodity Derivatives Market Executive summary
More informationOperational data First quarter Full year 2010 2009 Change 2009
Press release 5 May 2010 Stronger results in volatile markets Operating and Financial Review Statoil's first quarter 2010 net operating income was NOK 39.6 billion, an 11% increase compared to NOK 35.5
More informationWhat are futures contracts?
The Futures Market Introduction and Mechanics (c) 2002-2013 Gary R. Evans. May only be used for non-profit educational purposes only without permission of the author. What are futures contracts? A futures
More informationCOMMODITY SPREAD TRADING
COMMODITY SPREAD TRADING discretionary commodity trading in different and profitable way Romana Křížová CEO, TradeandFinance.eu, s.r.o. 1 What is Spread? Often used term Used in different contexts represents
More informationImpact of low crude prices on refining. February 2015. Tim Fitzgibbon Agnieszka Kloskowska Alan Martin
Impact of low crude prices on refining February 2015 Tim Fitzgibbon Agnieszka Kloskowska Alan Martin The recent fall in crude oil prices has coincided with both higher and lower profitability in the downstream
More informationTechnical Accounting Alert
TA ALERT 2010-34 JULY 2010 Technical Accounting Alert Accounting for commodity contracts Introduction The purpose of this alert is to provide general guidance on accounting for commodity contracts, with
More informationMLC MasterKey Unit Trust Product Disclosure Statement (PDS)
MLC MasterKey Unit Trust Product Disclosure Statement (PDS) Preparation date 1 July 2014 Issued by MLC Investments Limited (MLC) ABN 30 002 641 661 AFSL 230705 This information is general and doesn t take
More informationThe current decoupling of oil and gas prices, where prices of the two commodities move in different directions, negatively affects Gazprom s export
The current decoupling of oil and gas prices, where prices of the two commodities move in different directions, negatively affects Gazprom s export sales by driving up oil-indexed gas prices and leading
More informationLNG bunkering market perspectives, challenges and trends
LNG bunkering market perspectives, challenges and trends Moscow 31 March 2015 Sergiu Maznic Full-picture perspective Sund Energy helps navigate into the energy future Energy Economics Environment Learning
More informationHedging Natural Gas Prices
Hedging Natural Gas Prices Luke Miller Assistant Professor of Finance Office of Economic Analysis & Business Research School of Business Administration Fort Lewis College Natural Gas Industry U.S. natural
More informationFRONTLINE LTD. INTERIM REPORT JULY - SEPTEMBER 2005. Highlights
FRONTLINE LTD. INTERIM REPORT JULY - SEPTEMBER Highlights Frontline reports net income of $73.8 million and earnings per share of $0.99 for the third quarter of. Frontline reports nine month results of
More information5th Annual Oil Trader Academy
5th Annual Oil Trader Academy ICE Futures Europe, London July-August 2015 ICE Education and IBH have combined their expertise to provide an innovative and practical programme covering all aspects of the
More informationARIF HABIB COMMODITIES (An Arif Habib Group Company) April, 2013
ARIF HABIB COMMODITIES (An Arif Habib Group Company) April, 2013 Arif Habib Group serves over 100,000 local /international clients base Our success factors include continuous investment in Intellectual
More informationTerm Structure as the Primary Driver of Return
Trading Strategies in the Current Commodity Market Environment By Hilary Till Principal, Premia Capital Management, LLC, http://www.premiacap.com; Co-Editor, Intelligent Commodity Investing, http://www.riskbooks.com/intelligentcommodity;
More informationTHE UNDAMENTALS AND ECHNIQUES RADING OMMODITY PREADS. c s
c s THE UNDAMENTALS AND ECHNIQUES OF RADING OMMODITY PREADS The purpose of this booklet is to give you a better understanding of various aspects of spread trading in the futures market. Center for Futures
More informationControl over oil markets, once the province of the major
How B Y P HILIP K. VERLEGER, JR. Wall Street Controls Oil And how OPEC will be the fall guy for $90 oil. THE MAGAZINE OF INTERNATIONAL ECONOMIC POLICY 888 16th Street, N.W. Suite 740 Washington, D.C. 006
More informationPeople with energy. Adding value right across the supply chain
People with energy 140 million tonnes of fuel delivered in the last 10 years* Marine fuels is a large and complex global industry and is one of the world s foremost suppliers. Delivering on our commitment
More informationOTC Derivatives: Benefits to U.S. Companies
OTC Derivatives: Benefits to U.S. Companies International Swaps and Derivatives Association May 2009 1 What are derivatives? Derivatives are financial instruments that: Transfer risk from one party to
More informationChapter 1 - Introduction
Chapter 1 - Introduction Derivative securities Futures contracts Forward contracts Futures and forward markets Comparison of futures and forward contracts Options contracts Options markets Comparison of
More informationStructured products. Precision tools. A guide for private investors.
Structured products Precision tools. A guide for private investors. Structured products are listed securities available for trading on London Stock Exchange s regulated Main Market. Structured products
More informationCLTX Weekly Market Summary
CLTX Weekly Market Summary Summary Dry Bulk The main dry bulk index dropped to new historical lows Rates decreased for Capesize, Supramax and Handysize vessels Iron Ore and Steel ANZ bank cut its iron
More informationGlobal Real Assets Strategy Report: Focus on Oil
Global Investment Strategy Global Real Assets Strategy Report: Focus on Oil January 28, 2016 John LaForge Co-Head of Real Asset Strategy Analysis and outlook for the real assets market» Commodity prices
More informationFixed Income, Currencies and Commodities (FICC)
Fixed Income, Currencies and Commodities (FICC) Andrew Downe Group Head Macquarie Group Limited Operational Briefing 5 February 2013 Presentation to Investors and Analysts 38 Overview FICC is a diverse
More informationCommodity market regulation: Changing the way commodities are traded. Hosted by:
Commodity market regulation: Changing the way commodities are traded Hosted by: Bringing together commodity experts along the value chain on an interdisciplinary basis Commodity Club Commodity Producers
More informationFinancial Summary and Risk Management
Financial Summary and Risk Management 1 CAUTIONARY STATEMENT ON FORWARD LOOKING INFORMATION Certain information contained in this presentation, including any information as to our strategy, projects, plans
More informationDaily Commodity Report
Daily Commodity Report Daily Metals & Energy update Gold rose on Tuesday as the dollar receded slightly and stocks fell globally, though expectations that the U.S. Federal Reserve will raise interest rates
More informationA NEW WAY OF INVESTING IN COMMODITIES. ETC - Exchange Traded Commodities
A NEW WAY OF INVESTING IN COMMODITIES ETC - Exchange Traded Commodities Index Introduction 1 Exchange Traded Commodities: 3 - What they are - Main features - Investment modalities Focus on physically-backed
More informationPowerShares DB Commodity and Currency ETFs Convenient access to commodities and currencies
PowerShares DB Commodity and Currency ETFs Convenient access to commodities and currencies Not FDIC Insured May Lose Value No Bank Guarantee For US Use Only Now you can add agriculture, oil, gas, base
More informationHow Do Energy Suppliers Make Money? Copyright 2015. Solomon Energy. All Rights Reserved.
Bills for electricity and natural gas can be a very high proportion of a company and household budget. Accordingly, the way in which commodity prices are set is of material importance to most consumers.
More informationSupplemental Q1 2014 Earnings Results
Supplemental Q1 2014 Earnings Results First Quarter 2014 Highlights 2 Adjusted EBITDA (a non-gaap financial measure defined below) increased 24% to $89.9 million in the first three months of 2014 from
More informationOil Trading. Simon Basey / November 28, 2013
Oil Trading Simon Basey / November 28, 2013 What does IST do? Markets BP s equity crude oil, NGLs and natural gas Offers risk management products to third parties Imports crude oil and other feedstocks
More informationADVISORY CAPABILITY STATEMENT
ADVISORY CAPABILITY STATEMENT Bridging Two Disciplines We are independent Engineering Economists and Advisors. Our principal competency is as supply side and asset specialists. Since 1971 we have bridged
More informationMarket Briefing: Commodity Prices
Market Briefing: Commodity Prices February 9, 2016 Dr. Edward Yardeni 516-972-7683 eyardeni@ Mali Quintana 480-664-1333 aquintana@ Please visit our sites at www. blog. thinking outside the box Table Of
More informationInterim financial report for the period 1 January to 30 September 2011
Company announcement no. 11/ 18 November Page 1 of 9 Interim financial report for the period 1 January to 30 September Highlights Results improved in the third quarter with a gross profit of USD 8 million
More informationAdding fuel to the fire North America s hydrocarbon boom is changing everything. Steven Meersman. Roland Rechtsteiner
Adding fuel to the fire North America s hydrocarbon boom is changing everything Steven Meersman Mark Pellerin Roland Rechtsteiner What if the gasoline that you put in your car came from natural gas instead
More informationOil and Gas U.S. Industry Outlook
Oil and Gas U.S. Industry Outlook VERSION 01 YEAR 13 OUTLOOK: Positive fundamentals & outlook www.eulerhermes.us Key points WTI Crude is expected to continue to converge to Brent crude prices, narrowing
More informationSix Ways to Invest in Commodity Futures
Going Long on Index investing has long been popular in the securities markets. Now it is coming into fashion in the futures world, and bringing a new source of liquidity to commodity futures contracts.
More informationGlossary of Energy Terms
Glossary of Energy Terms A API gravity A measure of the weight of hydrocarbons according to a scale established by the American Petroleum Institute. Crude oils with higher values are lighter and tend to
More information