The customers of Elibank Vernon include:
- The producers, processors and end users of every major traded commodity;
- Commercial counter-parties;
- Institutional investors;
- Individual investors;
- Commercial banks;
- Major investment banks.
We offer these customers a comprehensive array of products and services. Among these services are our proprietary Risk Management Tool (RMT), as well as exchange and OTC execution designed to limit risk and enhance margins and bottom-line results; physical trading in precious metals and grains; a global foreign exchange and currency payment service; asset management; options and futures execution and trading; and advisory services.
We offer our customers a comprehensive array of products and services, including exchange execution and physical trading; inventory financing; OTC execution; managed futures; facility management; Commodity Network and market intelligence.
Commodity Risk Management
Elibank Vernon offers commodity Risk Management Tools that help companies not only survive but thrive in today’s difficult commodity environment.
Elibank Vernon’s risk management consultants have in-depth expertise in the supply and demand situation for specific commodities, access to our extensive proprietary database and detailed historical knowledge, and substantial experience in creating and using innovative Risk Management Tools.
Selecting the best tools – including exchange-traded futures and options, cash and forward-market contracts, and customized over-the-counter products – our consultants construct a Risk Management Tool that is tailored to your specific needs, and then work closely with you to execute it.
What is the objective? To limit risk and uncertainty, and improve margins and bottom-line results.
Our network of more than 250 risk management consultants around the world do not just study the markets, they live it on a daily basis. Rather than examining the markets from the 10,000 foot perspective of an ivory tower, our risk management consultants are engaged with their customers’ business in high-touch relationships that require constant monitoring of the volatile commodity markets. However, that doesn’t mean that we cut corners on the analytical side, as the ranks of our consultant network include many with advanced college degrees in economics, statistics, and business.
Elibank Vernon provides comprehensive fundamental and technical market intelligence, forecasting, historical databases, news, and econometric analysis in nearly every widely traded physical commodity, including agricultural products, energy products, forest products, fiber and textiles, base metals, precious metals, currencies, renewable fuels, and carbon credits.
Our market information department coordinates and supports the market information activities of the entire Elibank Vernon consultant network.
The Risk Management Tool
The Elibank Vernon Integrated Risk Management Tool (RMT) is a unique customer-centric approach to commodity risk management. We begin by working with our customers to identify and quantify all commodity risk that they may have in their business. We then construct a strategic and systematic approach to manage that risk, with a view to protecting and enhancing the net margin and bottom line of the business. This is a rigorous and time-consuming process, but results in deep and lasting relationships that can help our customers enhance their bottom-line results.
Why Incorporate a Risk Management Tool?
More than ever, the marketplace for producers and users of commodities is global in scope. As a result, supply-and-demand factors that once caused barely a ripple in the domestic market now are capable of creating high degrees of unpredictability and price volatility. This volatility, in turn, poses more difficulties than ever for the profitability of virtually all businesses that are vulnerable to commodity price fluctuations – including producers, processors, importers, exporters, manufacturers, distributors, and end users. It isn’t only the commodities that companies directly produce, process, or distribute that create these challenges. Businesses also must be able to predict and control the cost of other factors that directly impact their bottom lines, such as interest rates, foreign currencies, and fuel.
Why the Elibank Vernon RMT?
The Elibank Vernon RMT offers a comprehensive strategy that helps companies not only survive but thrive in today’s difficult commodity environment. The Elibank Vernon RMT was created by and is managed by our consultants, who have in-depth expertise in the supply-and demand situation for specific commodities, access to our extensive proprietary database and detailed historical knowledge, and substantial experience in creating and using innovative risk-management tools. Selecting the best tools for the job – including exchange-traded futures and options, cash and forward-market contracts, and customized over-the-counter products – our consultants construct a risk-management tool that is tailored to your company’s specific needs, and then work closely with you to execute it.
How RMT Works
Your Elibank Vernon consultant collects historical purchase data on your specific commodity usage and conducts an in-depth analysis of the current and projected global supply-and-demand situation. Elibank Vernon will develop a comprehensive strategy to manage the risks we identify, as well as make ongoing recommendations for the use of standardized or customized risk-management tools to help you meet your objectives. Elibank Vernon has experience in all major commodity markets and access to all appropriate financial over-the-counter instruments through our affiliate Elibank Vernon Markets, to manage your commodity price risk. One of the benefits of engaging an Elibank Vernon consultant for an RMT is that much of the risk management work is done for you, allowing you to focus on other priorities. You don’t need to be concerned with day-to-day market analysis; the Elibank Vernon consultant will do that for you. At all stages of the process, we will execute Tools only upon your approval.
Any organization with exposure to fluctuating commodity prices can potentially benefit from the RMT. Our consultants currently work with producers, distributors, manufacturers, processors, wholesalers, retailers, importers, and exporters – in short, any company that is reliant on, and vulnerable to price volatility in commodities.
In addition to our extensive experience in all of the agricultural markets, we also have an in-depth understanding of the global foreign exchange and energy markets. According to your investment objectives and needs, your Elibank Vernon Consultant can evaluate and manage these needs as part of the RMT.
Whether you realize it or not, many of your toughest competitors are actively managing their commodity price risk. We can provide you with the expertise and knowledge required to level the playing field and help your business be more competitive than ever.
Information plays a crucial role in today’s marketplace, but managing that information can often be a challenge. If you are still using a spreadsheet to manage your business’s information, you may not be getting all the value out of the data you collect. The key is having the right information at the right time in order to drive decision-making.
Know-Risk is designed to help you manage and interact with information so that you can develop risk management strategies and tactics. This interactive information manager aggregates information from several different sources and presents it in an easily understood format, designed to enable users to make informed decisions about their risk management strategies and tactics.
Know-Risk is a robust, state-of-the-art, scalable solution designed for our customers to use in their own operations. This tool has the ability to aggregate information from different sources and tracks the performance of your operations to allow you to make informed business decisions. It is time to realize all the potential in your business and Elibank Vernon’s Interactive Data Management Services can help you do that.
The company's management team has extensive global experience with some of the largest commodity trading houses and risk management skills honed in agriculture, base metals and energy markets. In addition, the senior management team has in depth practice in establishing successful...
We offer our customers a comprehensive array of products and services, including exchange execution and clearing services; physical trading; inventory financing; OTC execution and clearing services; managed futures; facility management; Commodity Network and market intelligence.