BUSINESS ACUMEN:

compass7Genuine Trading Solutions provides professional risk management, derivatives and Treasury services.  We work primarily with hedge funds, pension funds, endowments, trusts, corporations, and financial institutions of all kinds. As a Commodity Trading Advisor “CTA”, we are fully registered and licensed with the CFTC. Our key employees are also members of the Global Association of Risk Professionals. To sum it up, we are Portfolio Managers and risk management specialists for all derivative and alternative investment strategies. This includes market and operational risk management and hedging.

Although Commodity Trading Advisors 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 structure and execution of a viable hedging program. Consider your portfolio’s exposure to Foreign Exchange, Indices, Interest Rates and of course base commodities.

Genuine Trading Solutions is pleased to have its office in Toronto whereby we are able to service all of North America and Europe. In conjunction with our group of skilled specialists, we 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 embedded in your company or part time if your organization does not require full time services. 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 suitable hedge. All hedging solutions are designed to reduce exposures 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.

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 Eur-ex.

In support of socially responsible and climate conscious companies seeking a mechanism to reduce greenhouse gas and carbon 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);
– European Climate Exchange (U.K.);
– Eurex (Germany);

We are actively trading OTC off-sets and exchange traded products such as:

  • EU Emission Allowances (“EUAs”).
  • CERs (Certified Emission Reduction Credits).
  • 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

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 money. 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.

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

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

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 such things as 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 derivative products are also known as SWAPs. There are many different types and just as many uses for SWAPs which are 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 the floating rate plus LIBOR.

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 and with full consultation with you, we will be glad to undertake the execution of your hedging or speculation needs.  Our goal is to protect you against the adversities everyday economic conditions present. When you manage the risk associated to your 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 teach you the secrets 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.  These are risks associated with such financial instruments as Indices, Currency and Interest Rates. If you’re unsure whether your company can benefit from these products then call us to obtain a more detailed understanding.  We’ll be pleased 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. With our primary field of focus and expertise being wealth preservation through risk management hedging services.  Our President and CEO Dwayne Strocen, M.B.A., BSc. is a key figure and founder of Genuine Trading Solutions. He heads the combined risk and managed account departments and is instrumental in all assessments and portfolio changes.

Mr. Strocen has more than 25 years experience in all facets of financial services including Stocks, Bonds, Foreign Exchange and the Commodity and Derivatives market. He has worked with funds and businesses to manage risk and create wealth.  All the while utilizing 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.

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