Direct Swap Use Case: Manufacturing

Hedging Solutions for Manufacturing Companies

Direct Swap offers an international manufacturing company new prospective counterparties to enhance their metals hedging program.

A large multinational manufacturing company with significant exposure to iron ore and aluminum was frustrated by the lack of counterparties for their metals hedging program. Following discussions with Direct Swap, they were pleased to learn they could identify new prospective counterparties within our marketplace, and use our fully automated process to develop new counterparty relationships with them. Further, they could leverage Direct Swap’s fast and no cost automated on-boarding system, to become an active user in days, not weeks or months.

  • Using our community search function, the company can identify prospective counterparties active in iron ore and aluminum within the Direct Swap marketplace.
  • Without leaving the Direct Swap interface, the company can commence discussions with a potential counterparty and open an ISDA Master Agreement negotiation.
  • Once the ISDA Master Agreement negotiation is completed and the document eSigned, the prospective counterparty is automatically added, so the company can begin price discovery and negotiations with the new counterparty.

The ability to discover and efficiently add new counterparties in the metals space is expected to provide significant value to the company, by improving pricing and other terms for the company’s metals hedging program.

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