Farm Progress

INTL FCStone offers new platform to help farmers, other middle-market hedgers protect their futures positions.

December 31, 2016

2 Min Read
Traders place orders for futures contracts in this undated photo from the Chicago Board of Trade.Photo by Scott Olson/Getty Images

In a perfect world, a farmer could sell a futures contract or hedge his crop, grow it, harvest it, sell it and close out his futures position at even money or a profit.

As many growers know all too well, the futures market rarely provides a perfect hedge because a merchant or commodity fund manager sitting in an office can make a decision and move the market 200 to 300 points, leaving farmers just shaking their heads.

INTL FCStone Inc., is announcing the launch of a new analytic and risk management platform aimed at helping producers and other middle-market participants manage their commodities exposure, avoiding such problems.

The platform, Converge, applies INTL FCStone's global reach and capabilities to the unique needs of middle-market organizations operating within the commodities and foreign exchange space, enabling them to organize, track, and analyze commodities positions, the company said in a press release.

Converge provides a comprehensive, fully customizable offering for retail producers and consumers of exchange-traded products that require the services of a brokerage firm to connect to global financial markets, but lack the resources of traditional account holders.”

“From the small coffee grower in Colombia to the regional supermarket chain in the U.S. Midwest, Converge users can customize their risk management solutions and rely on our proven analytical instruments to protect their bottom line,” said Jared Ortner, director of innovation, commercial technology at INTL FCStone.

“The intuitive, easy-to-navigate SaaS platform combines our cutting-edge technology, risk management solutions and deep market expertise, providing middle-market organizations with financial transparency and risk tools, which allows them to efficiently manage risk and focus more time on their core businesses operations."

The platform interacts with commodity exchanges worldwide and enables users to enter custom commodity prices, and track and manage futures market as well as cash market positions, Ortner said.

“Converge provides clients with a world-class mechanism to guard themselves against adverse market conditions utilizing sophisticated strategies once reserved for the largest market participants. Its intuitive functionality streamlines the management of multiple commodity positions.

“The platform includes dozens of report options that help users to understand their positions, exposures, and historical performance, as well as analyze ‘what if’ scenarios.”

Converge also provides users with industry-leading financial market insights as well as educational materials on risk management, foreign exchange and commodities, enabling users to more effectively plan their go-to-market strategies.

“Converge allows middle-market operators to identify and understand risk embedded in commercial activities, and develop detailed situational analysis, all on a historical performance dashboard that tracks physical activities and related hedges.”

“Converge provides clients with a world-class mechanism to guard themselves against adverse market conditions utilizing sophisticated strategies once reserved for the largest market participants,” Ortner said. “Its intuitive functionality streamlines the management of multiple commodity positions.”

For more information, visithttp://converge.intlfcstone.com/.

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