For market participants, this means exposure is no longer limited to short-term shocks. Input costs, FX rates and cashflows are increasingly sensitive to structural shifts that can unfold over longer time horizons, making risk management a continuous rather than reactive process. 

Marex, well positioned to meet evolving hedging requirements

As volatility becomes more persistent and exposures more complex, hedging requirements are evolving. Market participants are increasingly managing risks that are multi-asset, longer-dated and shaped by structural factors such as trade policy, supply chain shifts and capital constraints. This has implications for how hedges are structured, financed and managed over time. 

In this context, effective hedging requires a combination of market access, structuring capability and strength of balance sheet, one that Marex Hedging Solutions provides. Drawing on its long-standing presence in commodity markets and its investment-grade credit profile, the team designs bespoke OTC solutions aligned with their clients’ underlying exposures. 

Marex Hedging Solutions support corporates, producers, consumers and intermediaries as hedging requirements shift from a peripheral activity to a core component of financial and operational planning. Our services range from the analysis of physical exposure and price risk through to the structuring and execution of derivatives within a bilateral framework, with the objective of aligning hedging structures with the commercial and financial realities of the underlying business. 

Identifying operational risks

Producers, consumers and trading houses operate with real operational risks — across a range of markets, from energy and metals to agriculture, dairy, environmental markets, freight and foreign exchange. Therefore, understanding exposure is the first step when designing a hedging strategy. The risks are often shaped by balance sheet considerations, seasonality, uncertain volumes, procurement cycles, tariff regimes, trade policy shifts and may arise at different points in the value chain, from soil to shelves, wellhead to refinery, or mine to manufacturer. Effective hedging begins with a clear assessment of how price movements affect revenues, costs and cashflows. 

Accessing the markets and product execution

Once exposures have been identified, accessing the relevant markets and executing appropriate products are the next steps in building a hedging strategy. This typically requires access to both global exchanges and OTC markets, as well as the ability to source liquidity efficiently. Where listed markets do not provide a precise hedge — due to tenor, size or payoff limitations — pricing illiquid and non-standard exposures becomes essential to ensure closer alignment with the underlying risk.

Marex provides access across both exchange and OTC markets, with pricing supported by in-house liquidity. Execution is delivered via Marex Hedging Solutions’ award-winning proprietary platform, AGILE, where both standard and more complex structures are covered.

Bespoke solutions for specific requirements

Many corporate exposures do not correspond neatly to standardised contracts. For this reason, structuring is often required. Solutions may range from replication of exchange-traded instruments within an OTC framework to fully bespoke derivatives incorporating commodities, FX or hybrid elements. Flexible maturities, broken lots and averaging mechanisms can be incorporated where appropriate. Transactions are executed bilaterally with Marex as counterparty, providing flexibility for clients while maintaining the stability and credit quality of an investment-grade counterparty (S&P rated).

Credit, an integral part of hedging

Credit and liquidity considerations are also integral to designing a hedging solution. Compared with exchange-traded margining requirements, a bilateral OTC framework can allow for more flexible credit terms. In certain cases, this may reduce or remove initial margin requirements.

In practice, this requires access to flexible credit and liquidity solutions. Marex Hedging Solutions complements this framework through tailored working capital solutions, including liquidity swaps and synthetic repurchase structures, which can help clients optimise margin requirements and unlock capital tied up in hedging activities. Structures can also be aligned with the timing of physical cashflows, supporting more predictable liquidity management and improved capital efficiency.

Using technology beyond trade execution

Post-trade execution is where hedging expertise makes the biggest difference. Positions need to be actively monitored, exposures reassessed as market conditions evolve, and strategies adjusted to reflect changes in volumes, pricing or underlying risk. This ongoing management is critical to ensuring that hedges continue to align with the original objectives of the business.

Through the AGILE platform, clients can monitor and report on their positions within a single platform. Functionality includes Click&Trade and White Label OTC execution, portfolio analytics, Greeks and stress testing. Documentation, cash management and post-trade processes are integrated into the workflow, supporting transparency across the full lifecycle of the hedge. 

A look back at the entire hedging value chain

Brought together, these capabilities form an integrated approach to risk management. By participating across each step — from exposure identification to execution, structuring, credit management and lifecycle management — Marex Hedging Solutions operates across the entire hedging value chain through a fully integrated framework.

Want to discuss how we can help with your hedging strategy?

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The trade was completed within 24 hours of the contracts’ launch on 7 April 2026. The transaction, brokered by Clarksons Futures, was executed on the Asia to North Europe route, one of the key lanes covered by the new futures.

The contracts are cash-settled and based on NYSHEX transaction-based indices, reflecting pricing derived from verified, physically shipped container transactions. They are designed to improve transparency and enable market participants to hedge exposure to volatile freight rates.

Marex Hedging Solutions’ early participation highlights strong client demand and the team’s capabilities across freight and commodity derivatives, providing its OTC client base with access to these contracts and supporting them in managing container freight exposure.

Container freight markets have experienced significant volatility in recent years, driven by shifting trade flows, geopolitical developments and ongoing supply chain disruption.

Want to discuss how we can help with your freight hedging strategy?
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The session connected global macro trends with what they mean in practice for producers. 

Energy and grains are more connected than ever

A key theme was the growing link between energy and agriculture. 

Stronger crude oil prices are feeding into the soybean complex, starting with soybean oil and moving through to soybeans and meal. Corn and wheat are also being supported by strength in energy markets. 

For producers, this means global macro trends are now directly influencing local pricing. 

Costs are changing planting decisions

Input costs are another major factor. 

Higher nitrogen prices are expected to reduce corn acreage in the US and increase soybean planting. That shift in supply has implications for global balances and forward pricing. 

At the same time, rising fertilizer costs are putting pressure on margins and reducing purchasing power. 

Managing risk, not predicting markets

The focus of the session was not on trying to predict where prices will go, but on how to manage them. 

Producers are being encouraged to: 

• understand their cost base and break-even levels 

• use hedging tools to protect margins 

• take advantage of stronger prices when they appear 

As highlighted during the talk, profitability comes from discipline, not from trying to time the market perfectly. 

Building momentum in Paraguay

For Marex Hedging Solutions, Innovar was an opportunity to strengthen relationships in Paraguay and continue building its presence in the region. 

We would like to thank our clients for attending the event and taking the time to visit our stand. With more than seven years of presence in Paraguay, Marex Hedging Solutions continues to grow alongside the country, supporting producers and agribusinesses with tailored risk management solutions. 

With more than 25,000 participants and a large share of key clients in attendance, the event highlighted the importance of combining global market insight with practical execution on the ground. 

Interested in hedging your exposure in soybeans, corn or other commodities?

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During the session “The Changing Impact of ESG & the Finance of Coal,” Andre Acosta, Director, Commodity Solutions LATAM at Marex Hedging Solutions, joined a panel moderated by Ranjana von Wendland, Associate Director, Global Business Development – Steel Raw Materials, Ores and Alloys at McCloskey by OPIS, alongside Juan Carlos Salazar, Business Development Manager at RTS International. 

The discussion took place against a complex market backdrop. Global coal demand reached a record 8.8 billion tonnes in 2024, driven largely by consumption across emerging economies. While trends have shifted across several markets in 2025, the structural drivers behind global coal demand remain largely intact. 

A key focus of the panel was the changing landscape for coal financing. While ESG-related policies have limited the availability of capital for coal projects, demand for coal, particularly in power generation and steelmaking, continues to persist. 

Andre noted that this dynamic can create a financing premium. With less capital available to support coal projects while demand remains stable, financing costs for the sector can be higher compared to other commodities. 

The panel also discussed how regional dynamics and geopolitical developments are influencing the sector. Policy developments in the United States may support short-term activity in thermal coal, while Asia remains the dominant region for long-term demand and investment. At the same time, metallurgical coal and coke continue to play an important role in global steel production. 

Geopolitical tensions and ongoing conflicts are also adding complexity to commodity markets, potentially affecting trade flows, insurance costs and financing decisions across the sector. 

In this environment, risk management remains critical. Andre highlighted how hedging tools such as swaps and options allow market participants to manage volatility, secure price levels and bring greater predictability to uncertain markets. 

As the discussion at McCloskey demonstrated, while the global energy transition continues to evolve, coal and steelmaking materials remain closely tied to broader conversations around energy security, industrial demand and commodity market stability. 

Want to discuss how we can help with your coal or other commodities hedging strategy?

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Over seven weeks, our team travelled more than 15,000km across Brazil’s key coffee regions, visiting over 300 farms, cooperatives and industry participants to assess current crop conditions during the critical grain-filling period. 

This year’s tour highlights favorable weather conditions, structural expansion of planted area and continued investment in crop management across both arabica and conilon regions – pointing toward a potentially record Brazilian harvest. 

The report combines on-the-ground field assessments with market analysis to provide a comprehensive view of what’s shaping the 2026 crop. 

Read the full report here

The launch of the Vesper Butter Price Index introduces an alternative benchmark. The index is set to trade on Euronext from September, expanding the available tools for price risk management in the dairy sector.

At launch, no listed futures contract was available. Following early discussions with Vesper regarding the structure of this new contract, Marex Hedging Solutions established the necessary framework to facilitate trading. We subsequently executed the first OTC transaction referencing the index.

This transaction demonstrates Marex Hedging Solutions’ ability to respond swiftly to developments in commodity markets.

As dairy markets continue to evolve, access to diversified and representative benchmarks will remain essential for effective risk management.

Want to discuss how we can help with your dairy hedging strategy?

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Over-the-counter (OTC) pricing strategies provide livestock producers, meat processors, and food companies with tools to help strengthen and diversify their hedging portfolios. Competitive pricing, combined with Marex Hedging Solutions’ credit capabilities, can help reduce margin requirements and working capital demands compared with futures-only hedging approaches. For clients with exposure to specific meat cuts, OTC contracts provide a more precise hedge than relying solely on Lean Hog or Live Cattle futures, while also serving as an alternative to forward pricing physical product through the supply chain. 

Supporting this expansion is Jeff Hansen, Senior US Livestock & Protein Sales, who brings more than a decade of experience in OTC hedging products across livestock and agricultural markets. Jeff joined Marex from Cargill and is based in Minneapolis, Minnesota. 

The business provides OTC pricing and risk management solutions across core commodities including Live Cattle, Feeder Cattle, Lean Hogs, Corn, and Soybean Meal — all standard CME underlyings. Within these markets, Marex Hedging Solutions offers a wide range of structures, from tailored structured pricing solutions to more traditional CME “look-alike” strategies, allowing clients to tailor hedging approaches to their specific exposures. 

In addition to CME-based products, Marex Hedging Solutions enables OTC execution in a range of non-exchange-traded protein markets, including individual meat cuts such as Pork Carcass Cutout, Pork Belly Primal, Pork Trim, Hams, Lean Pork Trim, Lean Beef Trim, and Tallow. These bespoke contracts are settled against USDA-reported prices, published daily, weekly, or monthly, providing hedging solutions where listed futures are not available. 

Want to discuss how we can help with your hedging strategy?

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The focus was to review our achievements in 2025 against our objectives, and in a second instance to look at priorities that will shape the next phase of growth for Hedging Solutions in North America in 2026 and beyond. 

Nilesh Jethwa, CEO of Marex Solutions, and David Cohen, Head of Hedging Solutions, opened with the global strategy for Marex and Hedging Solutions respectively, outlining how this translates at a regional level and reinforcing the importance of maintaining alignment across teams as the business continues to grow. 

NORAM strategy and regional updates

The regional strategy discussion was led by Federico Stiegwardt, Head of NORAM Hedging Solutions. The session covered recent developments across the region, what has worked well, where challenges remain, and the strategic themes guiding the business priorities across the US, Canada and Latin America. 

A series of regional and product-focused sessions followed, covering: 

• US and Canada – Agriculture, Dairy and Protein, presented by Dan Hofstad and Charlie Fee, Co-Heads of NORAM OTC Agriculture Sales, focusing on market development, client engagement and product expansion.
   
• North America – Energy, led by Tim Johanson, Director of North America Energy OTC Sales, outlining the evolution of the energy offering, collaboration across Marex, and continued client engagement in the region.

• Mexico, Central America and the Andean Pact – Commodities, presented by Andre Acosta, Director of Commodity Solutions LATAM, highlighting progress in these markets, onboarding activity and the importance of local coverage and infrastructure. 

• North America and Latin America – FX, with perspectives from Julian Morales, Head of LATAM FX Sales, Kevin Doñe, Head of North America OTC FX & Interest Rate Sales and Frédéric Letourneau, Vice President of North America FX Sales, focused on FX and rates activity across North America and Latin America, client needs and cross-asset opportunities.

Trading, technology and infrastructure

Mehdi Mlaiki, Head of Trading, led a session on Trading, Quants and Technology and its evolution for Heding Solutions. He discussed the ongoing work to build a trading platform to investment-bank standards and the importance of embedding an engineering mindset across teams to support scale and consistency. 

Technology and digitalisation were central to the discussions across the sessions, with Magalie Lanctuit, Head of Digital Execution, presenting on the future of digital execution and platform development, including progress made and upcoming enhancements designed to support client self-execution and efficiency. 

Support and Control functions

Key enabling functions further shared updates about how they enable the business: 

• Erin Kelly, Legal Counsel – Documentation Specialist, shared an update on legal support for the business, covering onboarding frameworks, the structure of legal documentation and ongoing efforts to improve efficiency across processes. 

• Matt Zych, Global Head of Credit Risk, gave a credit update, covering governance, portfolio management and process enhancements. 

• Roberta Oliveira, Client Service Executive, outlined Client Services initiatives, focusing on operational efficiencies, onboarding enhancements and optimising service delivery.

Looking ahead

The sessions concluded with one led by Nilesh Jethwa about culture, growth and the challenges ahead. The closing conversation reinforced the importance of collaboration, disciplined execution and maintaining a strong culture as Hedging Solutions continues to expand across regions and products.

To support this development, we are pleased to welcome Joseph Jiang, who joins as Vice President, Commodity Sales, based in Hong Kong. Joseph brings more than a decade of OTC sales experience from BOCI in Beijing, following an early career at Trafigura, where he worked as a physical trader. He holds an Engineering degree from University College London and an MSc in Finance from Imperial College London. His experience and regional market knowledge will play an important role in strengthening our offering and enhance the support we provide to clients across East Asia. 

Joseph will be locally reporting to Eric Rabot, Marex Financial Services Hong Kong CEO, and regionally to Dinesh Gupta, Deputy Head of Marex Hedging Solutions, APAC.   

“Serving clients from Hong Kong is a natural next step for us as we continue to grow the business across APAC. Having Joseph on the ground allows us to better serve clients in East Asia, a region with tremendous opportunity, while reinforcing our commitment to provide deep local expertise and personalised service.” — Dinesh Gupta, Deputy Head of Marex Hedging Solutions, APAC 

“We are excited to welcome Joseph as our first member from Marex Hedging Solutions based in Hong Kong. Joseph’s extensive expertise will be invaluable as we serve Corporates, a new client base for us here, marking a significant milestone in our growth.” — Eric Rabot, Marex Financial Services Hong Kong CEO 

Now serving clients from Hong Kong, Marex Hedging Solutions strengthens its reach across the Asia-Pacific region, and enhances our ability to deliver specialist risk management expertise to clients in East Asia.

Following the recent acquisition of Agrinvest by Marex, we invited the Agrinvest team to join us for the first time — exploring how we can build even stronger connections across the group before spending some quality time together as one team.

David Cohen, Head of Marex Hedging Solutions, shared an update on the firm’s global performance, noting how Brazil is instrumental in another record year for Hedging Solutions. His remarks set the stage for a conversation about how Marex continues to grow with purpose — expanding its reach, strengthening relationships, and building on solid foundations across regions.

Deana Herley, Group Head of Cross Sell and Client Engagement, led a discussion on collaboration and the potential for stronger connections between business areas.

Harry Benchimol, Co-Head of the Derivatives Engine, took the group on a different journey — from beans to bitcoin — showing how Brazil’s growing digital-asset market offers new opportunities built on the same risk-management expertise that defines Marex’s agricultural work.

Chris Wong, Head of Solutions Market Risk, provided a broad view of how new models and systems are helping Marex measure and manage risk with greater precision.

Magalie Lanctuit, Head of Digital Execution, spoke about the power of Agile and digital tools to simplify the client experience.

While Elizama Dalcomune, Chief Financial and Administrative Officer at Agrinvest, shared how the partnership continues to strengthen Brazil’s role in global agribusiness.

Closing the event, Dhiego Silva, Head of Marex Hedging Solutions Brazil, looked ahead to the next three years with a clear message: technology and human connection go hand in hand. The future of Marex Hedging Solutions Brazil will be built on both — innovation that empowers clients, and relationships that endure.

The offsite was a reminder that even as the business grows and evolves, Marex’s strength comes from its people, its partnerships, and its willingness to keep thinking bigger.

Want to discuss how we can help with your hedging strategy?

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