COMMODITY RISK > Strategy > Timing > Pricing > Monitoring
There are very few companies that know the exact amount they pay to their bank or counterparty for commodity hedging. This income for the bank or counterparty is factored into the rate and is not transparent. If a margin agreement was made, then it is interesting to know the rate over which the margin is calculated. Is it the bid or ask price, the mid price or some other basis? This is even more difficult to determine with futures transactions and other instruments such as the cylinder, call option, etc.
ICC uses the same real-time pricing systems as the major banks and has insight into all current commodity prices as well as into the margins that banks and brokers incorporate into the prices you are charged. We can reduce them to market-based levels and achieve savings that exceed or substantially recover our own consulting fee.
Are you curious what you pay in margin(s)? Then get in touch. We would be happy to perform a free margin check on some of your transactions.
