Agriculture and Softs
The ICAP commodities business offers a global full service broker operation to our clients with a presence on the trading floor and in OTC markets. The business is based in New York, with desks staffed around the clock to accommodate European, Asian and US markets. As members of ICE (NYBOT), offering a comprehensive suite of swaps, spreads, options, and other exotic derivative structures, ICAP is well equipped to deliver superior service and meet the liquidity demands of our clients.
ICAP Energy LLC’s soft and agricultural commodities business is a subsidiary of ICAP plc, the world’s largest interdealer broker. ICAP is a global leader in the over the counter derivatives market, enabling the commodities business to cover a wide range of products including, but not limited to, coffee, sugar, cocoa, cotton, corn, soybeans, palm oil, and live stock.
Commodity Index Options and Swaps
ICAP’s commodity index options and swaps business is a subsidiary of ICAP Energy LLC, the world’s largest interdealer broker. ICAP is a global leader in the over the counter derivatives market, enabling the commodities business to cover options and swaps which reference the S&P GSCI Excess Return Index and sub indices as well as DJAIG Commodity Index. ICAP also has a presence in correlation-dispersion baskets.
Pulp and Paper
One of ICAP’s newest endeavors on the Commodities desk is Pulp and Paper. ICAP has quickly become a market leader in the global derivative market offering over the counter (0TC) and exchange traded transactions in the growing Pulp and Paper markets. Products include both European and US Wood Pulp (NBSK, BHKP), recovered fiber (OCC and ONP). OTC derivative product structures include financial swaps and options, as well as exchange-traded futures and options on the Chicago Mercantile Exchange (CME) and New York Board of Trade (NYBOT).
Ferrous Products (Steel and Iron Ore)
ICAP has recognized the need for risk management tools for producers and end users in the global ferrous products community. These tools have only become recently available with the introduction of the LME steel billet contract and the Dubai Gold and Commodity Exchanges Rebar Contract in early 2008. NYMEX is expected to launch steel futures contracts in hot-rolled coil and cold-rolled coil by year end (2008). In addition, OTC trading in iron ore for China delivery began in May 2008. ICAP anticipates the introduction of steel scrap trading in 2009. We will offer trading in futures, options and swaps across all of the global steel and iron ore trading venues and time zones.
ICAP provides OTC derivative products for Olefin and Polyolefin settled against a variety of exchanges and indices (LME, NYMEX, CDI, CMAI, etc).
Agriculture, Softs & Cotton