TRANSACTIONAL SUPPORT AND DEAL CAPTURE

We share the same goals as our clients

 

 

R^2 provides support to a broad range of companies that hedge commodity price risk. We strive to become an integral part of each client’s team, understanding its objectives, risk tolerance and business constraints. Our goal is to ensure that client’s manage their commodity price risk using the optimum hedge strategy, at an attractive price and on fair terms – ensuring that there are no surprises along the way.

 

For more than 10 years clients have trusted our experts to deliver timely and insightful market information relevant to their business. R^2 is active in the markets everyday. Working on behalf of our clients, R^2 interacts with a broad sampling of market participants. These interactions give us access to market intelligence, which gives us insight into market expectations, allows us to anticipate the impact of reported data and identify events that are driving market price. As we monitor the market and events on behalf of our clients, they are free to focus on their core business with confidence.

 

Once a transaction is executed, R^2 captures all positions in its risk management system and then confirms the transaction with both parties. This allows R^2 to maintain a reliable and secure database of hedges. Our analytical software and market data is fully integrated with the client database. R^2 is unmatched in its ability to monitor and report on client hedge portfolios efficiently and accurately.

 

  • Trade strategy - When executing hedges, timing and instrument selection are guided by R^2’s proprietary TLC (Trend, Location and Control) analysis. These indicators define the range of expected prices and help clients gauge the appropriate urgency for the transaction.
  • Decision support and documentation - TLC quantifies factors relevant to trading decisions and allows for them to be documented.
  • Our team of experienced professionals will assist with new hedges, hedge modifications, terminations and novations.
  • Hedge execution - R^2 will negotiate, witness, report and capture all hedge transactions.
  • Monitor existing and identify potential counterparties - R^2 has assisted clients hedge with over 60 counterparties from around the globe including many of the worlds largest financial institutions.
  • Position Management and Contract Administration - R^2 will help your organization standardize and automate complicated and tedious contract administration functions. In addition to the time saved, this improves the efficiency and accuracy of your contract administration operations while capturing all contract related information in a single, secure repository.
  • Policies, procedures and documentation - R^2 assists in developing internal policies, procedures and controls to ensure that hedge program guidelines are followed. This includes risk management committee formation, trade approval process, hedge program limits, approved instruments and hedge program reporting requirements.