HEDGING

To enhance the breadth and depth of hedging opportunities for our clients Dallas Commodity teams with our clearing firm, R.J. O’Brien to provide access to a broad array of hedging products and tools.  Founded in Chicago in 1914, RJ O’Brien is the oldest independent futures commission merchant in the United States having prospered through the peaks and valleys of business cycles over the decades. The quality of client service and risk management offered is second to none, providing an ideal setting for our Structured Products desk.

The deep futures and options foundation of RJO is a perfect match for the exchange cleared OTC markets in which deals originate since the contracts involved are treated in the same manner when it comes to clearing, margin and balancing.

The highly skilled veteran professionals staffing the Structured Products desk have an average of 25 years experience in analysis, deal configuration, trading and executing both in the futures and options and OTC realms.

Structured Products Services

The Structured Products desk provides services in a variety of markets enabling institutional, commercial and retail operations to tailor their risk exposure with an almost unlimited choice of swaps and options. Engaging risk management expertise and extensive market knowledge will determine the best, most cost effective approach available for your needs.  Whether the requirement is for executing a pre-determined strategy or doing the research to develop a strategy based on a general plan, we offer the flexibility necessary to deal with the ever increasing complexities facing business’ today in the hedging/trading space.

The advantage of using our Structured Products desk lies in the depth of experience, low cost and one-on-one attention when constructing deals.

Clearport and ICE

We primarily use two platforms to execute: CME Clearport and ICE OTC. The Commodity Modernization Act of 2000 allowed exchanges to compete with bi-lateral OTC trading with the creation of exchange cleared swaps and options.

The advantage of using exchanged cleared OTC swaps cannot be over emphasized: counterparty risk is eliminated, all trades are cleared in one place to allow for cross margining and an impartial third party provides daily settlement enabling marked-to-market balancing.

Perhaps the most attractive feature is that these swaps and options are all financially settled so there is no issue of options being exercised into futures or of being delivered.

By using these platforms as the principal dealing venue, RJ O’Brien streamlines the hedging and risk management process directly improving your margins no matter if consumer, producer or trader.

Contact us for additional information and discuss which type of account is best for you.