“Treasurers play a key role in guaranteeing liquidity for Commodity Trading Firms and minimising the financing costs of hedges. With many acknowledging that margin calls on their cleared derivatives are the biggest uncapped liability their firms face, the leading commodity trading firms have adopted robust margin management practices…”
Recent market volatility has seen margin requirements spike. Firms have been forced to source extra liquidity at short notice – at a time when access to bank financing has already been restricted by regulation and an economic downturn – costing them tens of millions in additional financing costs.
Derivatives margin has become the largest uncapped liability for Commodity Trading Firms, making active margin management mission critical.
In our best practices guide, we break down how Commodity Trading Firms can maintain cost-effective hedges while guaranteeing their own liquidity. We explain how to approach those business-critical questions – so that Treasurers can answer them with confidence:
– Are my current margin calls correct?
– How has recent trading activity impacted the change in margin requirements?
– What is my margin call going to be tomorrow?
– What should my margin calls be under normal circumstances?
– What could my margin call be in extreme market conditions?
– How can I free up cash by liquidating positions?
– How can I free up cash by optimising the portfolio?
Download our guide, here >
- How can you avoid back-testing SIMM margin?
- What do you actually need to do to be ready for UMR margin reconciliation?
- A How-To Guide: Margin Best Practices