Corporations who typically use OTC products are publicly traded companies such as food conglomerates, gas producers, refineries that are sourcing product and by-products to supply to the commercial market place.
Corporations may use IFM OTC instruments in order to:
- Hedge their up-side market price risk with OTC Lookalike options and swaps.
- Take advantage of IFM’s initial and variation margin thresholds (if they qualify for them), which in some cases can act as financing.
- Find hedging strategies via OTC customizable options that enable them to manage their production with specific contract sizes, expiration dates and strike months.
- Address customer hedging needs to potentially enhance their bottom lines.