FinEx group has entered the commodities arena through the establishment of a specialist boutique business providing hedging and risk management services to commodity producers and consumers on a global basis.
The business enterprise established through FinEx Commodity Partners will provide a full range of over-the-counter (OTC) solutions and transactions to a global client base, through the creation of hedging programmes and strategies specifically tailored for each client’s individual demands.
FinEx group has assembled a team of eight commodity and structured product professionals, led by Simon Smith, former managing director and head of OTC commodity solutions at Jefferies Bache in London.
Simon Luhr, CEO of the FinEx group, says: “FinEx has been exploring the commodities arena for some time, and wanted to enter the business with a strategic enterprise that will benefit from the changing commodity landscape that has evolved with the withdrawal and business reduction of some international bank groups, and major participants. An increasing demand for protection against price volatility continues for producers and consumers in their production and consumption of underlying commodities, despite the reduction of participants providing such. FinEx identified this opportunity and commenced the development of a business to capture this space.”
Simon Smith, head of commodities at FinEx, says: “Over the past few years we have seen a sustained demand from commodity companies, from both the production and consumption sides of the business, to protect themselves against price volatilities and the desire to participate in hedging programmes and risk management initiatives. Companies now realise that hedging and risk management is a vital component of today’s business environment, a key part of maximising profitability, particularly across the agricultural and softs commodity markets where derivative products are quite vanilla, and less sophisticated. FinEx has assembled a highly skilled and experienced team to create a specialist ‘boutique’ providing for this demand.”
FinEx live operations have commenced this month, and the business development will continue geographically to extend the global coverage of the enterprise.