GLOBAL HEDGE FUND
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.
PREMIERE FERROUS MARKETS DESK IN THE WORLD
- Core Transactions when FGM sources supply
- Directed Buy Structured Transactions (DBSTs) when maintaining existing supply chain relationships
- Carbon Credit Hedged Offsets
- Direct Trades
- Market Making
- Research and Market Intelligence
WHY HEDGE WITH US
- amount our hedging business has increased since 2017
- number of tons we hedged in 2021, a 70% increase from 2020
- percentage of all the HRC trades on the CME we were a party to in 2021
- 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:
- Four former pit traders who collectively have over 90 years of experience trading commodities on exchanges that include NYMEX, COMEX, CME, CBOE, CBOT, ICE, LME, and SGX.
- Two members of the risk desk hold the Chartered Financial Analyst® designation.
- One full-time economist.
OUR PROOF IS IN OUR NUMBERS
- estimated per ton savings from passively hedging the last seven years
- estimated reduction in pricing volatility from passively hedging the last seven years
- estimated per ton savings from hedging the 2020-2021 rally
- total savings over the index for hedged FGM customers in 2021