Starsupply Renewables announce largest ever OTC exchange cleared agricultural swap
Starupply Renewables agriculturals desk has been an active participant in the relatively new market of OTC agricultural derivatives since it’s inception in early 2008. One of the growing issues in this market emerging from the financial crisis has been counterparty credit risk. The new exchange-cleared OTC swaps and options products developed by the ICE and launched on February 13th have been designed to mitigate this risk and Starsupply Renewables has been a keen supporter of the product and contributer to it’s development. So it was appropriate that on February 18th Starsupply Renewables brokered our first cleared sugar swap transaction, which has been the largest transaction in any of the agricultural cleared swap markets so far. We are also working with our clients to be the first to execute transactions in both coffee and cocoa.
