FINANCIAL SERVICES

THE POWER OF FLACK METAL BANK

Until 2022, buyers had to purchase physical inventory from FGM to take advantage of our hedging and risk management service. With Flack Metal Bank (FMB), we are separating metal supply from metal pricing for all qualified buyers, allowing them to take advantage of pricing on the forward curve for flat rolled products without disrupting their existing supply relationships.

PREMIER FERROUS MARKETS DESK IN THE WORLD

  • Structured Transactions which de-risk OEMs (Patent Pending on FMB Directed Buy Structured Transactions*)
  • Direct trading of HRC futures and options to qualified trading partners via CME Clearport or ISDAs
  • CME market making of ferrous futures and options (currently 20% of all traded tons on the exchange)
  • Risk Management of FGM Physical Business
  • Environmental trading desk – handling both voluntary and compliance carbon offset credits
  • Hedged Repurchase Agreements
  • Commodity price risk advisory for OEMs
  • Proprietary Research

WHY HEDGE WITH US

1300%
amount our hedging business has increased since 2017
780k
number of tons we hedged in 2021, a 70% increase from 2020
16%
percentage of all the HRC trades on the CME we were a party to in 2021
$47
current value of every $1 invested in our trading desk since 2017

The FGM Risk Management and Research Team is the most sophisticated risk desk in the ferrous space in the world. The FGM bench works with our clients to match their risk strategies to their actual business needs, all while educating them in order to grow their own internal understanding and capabilities. Our highly-skilled team includes:

  • Five former pit traders who collectively have over 110 years of experience trading commodities on exchanges that include NYMEX, COMEX, CME, CBOE, CBOT, ICE, LME, SGX, NYBOT, and NOS.
  • Two members of the risk desk hold the Chartered Financial Analyst® designation.
  • One full-time economist.
  • One quantitative finance expert.

OUR PROOF IS IN OUR NUMBERS

$93
estimated per ton savings from passively hedging the last seven years
69%
estimated reduction in pricing volatility from passively hedging the last seven years
$600
estimated per ton savings from hedging the 2020-2021 rally
$50M
total savings over the index for hedged FGM customers in 2021