More than just experts
Commodities
Equinox Consulting has earned recognition for its expertise in Corporate & Investment Banking by providing businesses with the tools they need to manage volatility and adjust their commodity contract pricing for commodities risk.
At Equinox Consulting, we have developed a comprehensive range of services from consulting and risk management for commodities derivatives markets through to implementing targeted solutions such as risk-adjusted pricing, revaluation, and risk management systems.
Equinox Consulting commodities services are designed specifically to meet the needs of professionals in financial services, other services firms, and industry.
Our commodities services are based on:
- Specialist knowledge: Equinox Consulting boasts a team of twelve expert consultants who have gained in-depth commodities experience with major industrial and financial services businesses.
- The methods and services Equinox Consulting has developed for the firm's other business lines:
- Performance optimization and cost control
- Innovation and marketing
- Risk management and internal control
- Capital markets and asset management
- Finance, human resources, and information systems - Equinox Consulting's non-exclusive partnerships with major specialized software developers like Murex, Brady, TriplePoint, Openlink, SuperDerivatives, and Algorithmics.
All Equinox Consulting services are covered, from operational strategy to implementation:
- Assistance determining and implementing risk-hedging strategies
- Operational support plans to ensure that business goals are reached
- Development and implementation of pricing and market risk management software
- Organizational and process restructuring
Sample project
A top-tier bank
The assignment:
To support rollout of a "Commodities Community" to facilitate collaboration between this major corporate and investment bank's commodities business lines
The results:
- The community model was validated and the community went live within three months
- The community mission statement was completed and approved by the five business lines involved: hedging, financing, M&A, family wealth, and coverage
- The operating principles for the community were determined
- The necessary compliance rules were written to enable firewall-separated business lines to work together and share confidential information - A detailed review of targets for 20 key customers was completed and 11 innovative marketing initiatives leveraging hedging, financing, and M&A services were developed, including client pitches for each
- An innovative service lineup was put together to differentiate the client from competitors
A market-leading agri-food business
The assignment:
Identify and measure commodities risk for a given scope
Determine and implement strategies to manage these risks upline and downline from the defined project perimeter
The results:
- Analytical breakdown of pricing of services tied to a process or activity
- Determined impact of commodities on future sales margins
- Analyzed commodity contracts
- Determined priority commodities impacts to manage - Strategy recommendations
- Risk-adjusted pricing to manage risk before it occurs and secure sales margins
- Use financial products to hedge commodity price fluctuations - Implementation
- Overhauled sales policies
- Assessed existing hedge products and optimized operations management
Sample project