Marex Solutions, a division of global commodities broker Marex Spectron specialising in the manufacture of customised OTC derivatives, has launched a structured investment product offering.
This new structured investment business customises notes, backed by Marex Spectron or third-party corporates, and includes capital protected, participation, yield enhancement and leveraged products on commodities, equities, foreign exchange, credit and mutual funds. The first trade was on 23 February, with the launch of a one-year, 100% capital-protected note that provides the investor with upside participation to a credit fund.
Clients benefit from a competitive funding level from a robust multinational counterparty and achieve customised exposure to a broad spectrum of underlyings. The goal is to deliver to the structured product market the same high-level of client service and transparency that is being provided to Marex Solutions’ corporate hedging clients.
Since Marex Solutions was launched in 2017, the business has traded with corporate clients across the globe, from small regional sugar producers in South America to large multinational consumers and processors in Europe. This fast-growing division has designed and traded hedging solutions for clients in Agriculture, Energy and Foreign Exchange.
Marex Solutions differentiates itself through the use of the latest technologies to offer clients cost-effective products, with more transparency on a flexible platform. Using its proprietary Agile technology platform, clients can build, perform scenario analysis, and price their own customised products across agriculture, energy, metals and FX with results available almost instantaneously. Clients are automatically notified when their prospective trade reaches their target level and can simulate the performance of existing positions in a variety of market conditions.
Nilesh Jethwa, CEO of Marex Solutions, commented:
It Is through the use of new technology that we can offer flexible, intelligent, transparent and cost-effective structured products. This is what we have achieved in a short-period of time in the corporate hedging space and is where we also see a significant opportunity in the structured investment market.