
BUSINESS ACUMEN:
Genuine Trading Solutions provides professional risk management and CTA services primarily to hedge funds, pension funds, endowments,
trusts, corporations, and financial institutions of all kinds. As a Commodity Trading Advisor "CTA", we are duly registered
and fully licensed with the CFTC and a member of the Global Association of Risk Professionals. We are a Portfolio Manager
and risk specialist for all derivative and alternative investment strategies
including Market and operational
risk management.
Although Commodity Trading Advisor’s
are largely known for
managing
derivative assets for hedge
funds. The
service that captures our
attention is
the active role of reducing
Market or
Operational risk. In this
capacity we
focus on the analysis and
structure of
a viable hedging program
as it relates to Foreign Exchange,
Indices, Interest Rates and of course base commodities. including carbon emissions.
Genuine Trading Solutions is pleased to have offices in both Toronto New York servicing all of North America and Europe.
In conjunction with our group of skilled specialists, we have developed a strong team of professionals
who will guide you to a profitable relationship we hope will continue for years to come.
Our mandate is to provide full service hedging / risk analysis and execution solutions on an out source
(contract) basis. Our Staff work either full time imbedded in your company or part time if your organization does not require
full time services. We do not advertise. Introductions are made through the business community, peer referral and personal contact.
HOW WE WORK:
Utilizing a variety of risk measurement tools such as Value-at-Risk ("VaR"), we will determine your company's potential
risk exposure and recommend a hedging strategy designed to reduce your exposure to adverse market or economic reversals.
This is done utilizing both exchange traded and OTC derivative products.
To provide you with some understanding of how this may work. The following will briefly outline some details to assist
in our explanation.
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Carbon Emissions:
CARBON EMISSIONS
Genuine Trading Solutions provides Carbon Emissions trading in support of the Kyoto Protocol, Regional Greenhouse Gas
Initiative, Western Climate Initiative, and others. Due to our specialty in the field of risk management and hedging,
we have formed a special relationship with our partners at the European Energy Exchange and Eurex.
In support of socially responsible and climate conscious
companies seeking a mechanism to reduce greenhouse gas emissions, we recognize the challenges of making the necessary
changes to conform to a new way of doing business.
In partnership with our member exchanges, we provide
direct access to trading CO2 emissions on a variety of world exchanges including:
- Australia Climate Exchange;
- Bluenext (France);
- Chicago Climate Exchange;
- European Climate Exchange (U.K.);
- Eurex (Germany);
- Montreal Climate Exchange;
- Tianjin Climate Exchange (China);
We are actively trading OTC off-sets and exchange
traded products such as:
- EU Emission Allowances ("EUAs");
- CERs (Certified Emission Reduction Credits); and
- VERs (Voluntary Emission Reduction Units);
We endeavor to put in place an effective trading strategy
combining compliance to both government regulation and socially conscious investors. The challenges of the next
century seem evident, we have the expertise for becoming an integral component in moving forward. Make us part of
your team and we'll make a difference together.
Foreign Exchange – Fx:
FOREIGN EXCHANGE
Through our relationship with two major banking clearing facilities ("FCM") one headquartered in London England and
the other in New York, our institutional and corporate clients have access to approximately 40 tradable currencies
worldwide. Our clients routinely execute physical conversion for payroll or to hedge future currency exposure against
unexpected reversals.
Due to issues regarding money laundering legislation,
accounts are generally opened directly with our FCM. This process streamlines the ability of moving funds into your
Fx account and back again after a transaction is completed.
Anyone who has ever wire transferred funds continues
to wonder why, considering todays technology, the banking industry persists in hindering the speed of wiring funds.
The whole process creates more anxiety with customers rather than providing solutions. Well that has thankfully ended.
We have worked with our European banking partner to provide for a new method of rapid execution of money transfer.
Your company can now qualify for the Electronic Transfer of Funds, ("EFT") into any currency you desire with same day
(round turn) settlement. All this regardless of who you bank with, anywhere in the world.
Indices:
INDEX HEDGING
The second most common hedging strategy for equity and fixed income managers is the protection of a portfolio against
market downturns.
To accomplish this effectively, portfolio managers routinely
utilize an index hedge rather than the liquidation of a percentage of their portfolio. The benefits are obvious. Firstly
such a hedge is much less expensive than clearing fees for stock liquidation and then subsequent re-purchase. Secondly,
timing is critical and in the event the portfolio continues to rise, the fund manager continues to hold his position fully
intact and protected by the hedge.
Genuine Trading Solutions is a full service CTA firm,
and through our international clearing facility, (FCM) we are able to provide an index hedge on virtually any market
world wide, including:
| S&P TSX 60 |
|
FTSE 100 / 250 |
|
Dow Jones |
|
S&P 100 |
| S&P 500 |
|
NASDAQ 100 |
|
Nikkei 225 |
|
Russell 1000 / 2000 |
| CRB Index |
|
US Dollar |
|
CAC 40 |
|
Hang Seng |
| Value Line |
|
DAX |
|
|
|
|
Interest Rates / Fixed Income:
FIXED INCOME HEDGING
In addition to index hedging for equity portfolios, we offer a full assortment of exchange traded products for hedging
interest rates in relation to fixed income portfolio’s. These include:
| Cdn Bankers Acceptance |
|
Cdn Gov’t Bonds |
|
Euro Dollar |
| US T-Bills |
|
US T-Bonds |
|
US T-Notes |
| Japanese Gov’t Bonds |
|
LIBOR |
|
30 Day Fed Funds |
| Credit Default SWAPS |
|
SWAPS |
|
Fed Binary Options |
Commodity Products:
BASE COMMODITY HEDGING FOR CORPORATIONS
If your corporation imports a product in one currency and sells it in another currency, then you may be experiencing
currency risk. If you purchase a base product today i.e. steel or copper, but the finished product is not re-sold for some
time into the future, then you are experiencing product risk also called basis risk.
Whether you are the owner of a small business or CEO of a
Fortune 500 company, you may require the services of a CTA to manage and off-set the risk associated with daily market
variances. Over the years, our clients have come to us for hedging Wheat, Corn, Livestock, Gold, Silver, Copper as well
as Crude Oil and Natural Gas. The list is long and as varied as the business of our customers.
We can be of help, regardless of the product you sell or
the country you market to. We have worked with clients in almost every major country in the world.
Credit Derivatives:
CREDIT DERIVATIVES
Credit derivative products are also known as SWAPs. There are many different types and just as many uses for SWAPs as varied
as your imagination. But essentially they are known as an exchange of income streams. The most common is an Interest Rate
SWAP where the owner of a fixed income stream wishes to exchange with the owner of a floating income stream.
Credit Default SWAP - is used as a hedge against a default by the
issuer of a bond or bank loan.
Total Rate of Return SWAP (TROR) - unlike the credit default SWAP which is really more of an (insurance) put option, a TROR
SWAP is a true SWAP. The TROR payer might be a bank that owns a bond (but could be almost any asset including a basket of assets).
The bond owner (payer) enters into a TROR with an investor (receiver). The payer pays coupon income plus appreciation / depreciation
on the reference asset. In exchange, the investor pays floating plus LIBOR.
Give Up Agreements:
GIVE UP AGREEMENTS
Give Up Agreements are commonly used instruments by equity and fixed income funds to ensure all outside fund managers
process their trades through a single custodian or prime broker. This is especially important in derivatives trading
when the FCM or Futures Clearing Merchant is separate and distinct from those used by equity traders.
As your CTA, we are well versed in the use of Give Ups and will happily coordinate the set-up of such an agreement
with your custodian or prime broker. We understand the importance of making your accounting process for the daily
marked-to-market reporting of NAVPS as simple as possible.
FULL SERVICE CTA STRATEGIES:
In conjunction with full consultation with you, we will assist in the calculation and undetake the execution of your
hedging or speculation needs which will protect you against the adversities everyday economic conditions present. When
you manage the risk associated to your equity, fixed income portfolio, or business, you are really controlling conditions
your competitors cannot.
If you knew how to control commodity prices and economic volatility wouldn't you have a distinct advantage over
your competitors. We will give you the skills and the ability to control circumstances previously available to only
the worlds major corporations and wealthiest individuals.
The largest institutions in the world for decades have long been hedging their risk associated with such financial
instruments as Indices, Currency and Interest Rates. If you are unsure if you or your company can benefit from these
products, call us to obtain a more detailed understanding of how to manage your operational or market risk exposure.
OVERVIEW:
The result of several industry mergers has created an opportunity for us to specialize in the areas of our choice. Our
primary field of focus is wealth preservation through risk management hedging) services.
Our Trading Department is headed by our President and CEO Dwayne Strocen, M.B.A., BSc. C.T.A. Mr. Strocen
is a key figure and founder of Genuine Trading Solutions. He heads the combined trading division and is instrumental in all
trading assessments and portfolio changes.
Mr. Strocen has more than 20 years experience in all facets of financial services including Stocks, Bonds,
Foreign Exchange and the Commodity and Futures market. He has worked with funds and businesses to manage risk and create
wealth utilizing all of the most current trading and hedging techniques available.
Our objective is to work in partnership with you to protect your assets from adverse economic events that result
in serious market reversals. To speak with a Genuine Trading Solutions risk professional, telephone today.