CTA firm Genuine Trading Solutions announces an enhanced product line from traditional trading services performed by majority of Commodity Trading Advisors.
Genuine Trading Solutions President and CEO, Dwayne Strocen said today “The financial services industry is constantly adapting to a changing world climate. The collection of hedge funds, pension funds, trusts, endowments and corporations throughout North America and the world are adapting to the more sophisticated demands of their unit holders by including risk management analytics to their equity and fixed income portfolios.”
It has been widely known that while the largest institutions employ their own traders and risk management departments, most funds employ outside trading specialists to aid in fund diversification. The fund manager looks for specialist trading styles, expecting the Portfolio Manager to integrate risk management solutions to off-set unexpected market and currency issues.
Experience has taught us that due to the Portfolio Managers inability to consistently remain in the top quartile, fund managers are increasingly taking control of these risk requirements on an aggregate of their fund assets. The onset of this epiphany leads to the question of where to turn for help.
There is no shortage of risk specialists and no shortage of traders. Now Genuine Trading Solutions is announcing a turn key solution to both the identification and analytics for determining the risk threat but also the execution of the subsequent risk off-set, known as a hedge.
Hedging is a term used to refer to the process of reducing risk brought about by unexpected liabilities. Derivatives, either exchange traded or over the counter “OTC” are commonly used in reducing or eliminating this risk. The use of derivatives is regulated by the Commodity Futures Trading Commission (“CFTC”). As such, registered CTA firms such as ours provide a vital service in the analytics and execution of derivative products for either capital gain or eliminating risk.
President and CEO, Dwayne Strocen, says the most common services requested are inter-connected to Market Risk. Usually liabilities related to adverse market conditions such as equity, fixed income, or interest rates are of greatest concern to financial firms. Next, commodity basis hedging is often requested to preserve gains in areas such as energy products, precious metals, agriculture and many other products. Operational Risk is next with currency or foreign exchange being the primary source of uncertainty for companies. These can be capital projects, overseas branch office salaries paid in foreign denominated currency. Purchase of goods in one currency and sales of finished product in another.“
We are pleased to extend our expertise into this exciting field of growth and share in the success of our international client base”, says Dwayne Strocen,- President and CEO.