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Trading commodities is a high-risk business. Yet, many companies are
effectively exposed to trading risk as a by-product of their core business.
RJO creates risk management solutions for companies with exposure to
commodity and financial markets. In a marketplace that is bombarded with
the rehashing of daily market events, we provide timely, valued-added
research and consulting services targeted directly at the individual risk
management needs of our commercial client base. Unlike many of our
competitors, risk management is not a sideline – it is our core
business.
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We believe it is extremely important for companies to regularly examine
their risk management objectives to ensure that their activities in the
marketplace are in line with their true core competencies. We also believe
that concrete, measurable performance benchmarks are an integral component
of an effective risk management program.
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In today’s complex world, it is not unusual for corporations to face
commodity and currency price risk relating to a myriad of products and
countries. In such cases, the job of measuring the company’s true
risk exposure can become quite complex. In addition, different divisions
and geographic locations often operate in isolation to each other with
respect to risk exposures.
By providing a corporate-wide risk assessment, RJO can facilitate a more
accurate measurement of a corporation’s true risk.
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Except for a select number of pure trading companies, we believe that a
corporation’s involvement in commodity and currency markets should be
about risk management, not about trading. Thus, RJO advocates a
well-defined risk management program that outlines the broad parameters of
a company’s involvement in commodity and currency markets. A hallmark
of a successful corporation is its ability to develop and implement a risk
management strategy with the full support of all levels of the corporation.
RJO can develop a formal, written risk management policy that provides an
appropriate balance between meeting corporate objectives and giving risk
managers and procurement staff the latitude they need to perform their
functions effectively.
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- Oilseed Crushing and Processing Plants
- Milling and Baking Companies
- Livestock Feeding Operations & Feed Mills
- International Trading Companies
- Food Processors
- Ethanol Producers
- Transportation Providers
- Insurance Underwriters
- Fertilizer Manufacturers
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Distinct from the business objectives of a risk management program, is the
need for proper internal risk management controls and procedures. Given the
very different worlds that traders and accountants typically come from,
there is often a strong need for a liaison to establish the appropriate
checks and balances with respect to risk management and trading
activities.
RJO can draw on its many years of experience to help define and implement
an appropriate corporate risk control system.
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RJO offers a full range of global clearing and execution services for
virtually every exchange-traded product in the world. Over the years, RJO
has grown to accommodate the full spectrum of commodity and financial risk
management instruments and is a recognized leader in the futures industry.
RJO’s foreign exchange team complements our large presence in the
commodity markets by providing trade execution via exchange-traded markets,
and the interbank foreign exchange market.
In addition to direct-to-floor trade execution, RJO has a proprietary
electronic order-routing system. We are committed to providing leading
edge, electronic trading solutions to our global clientele.
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RJO provides a wide range of research products aimed at meeting the needs
of our corporate clientele. We have received tremendous feedback on the
quality and presentation of our research material. Our research and trade
execution staff assists customers around the world with market research and
ongoing trading advice.
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This information is not to be construed as an offer to sell or a
solicitation or an offer to buy the commodities herein named. The factual
information of this report has been obtained from sources believed to be
reliable, but is not necessarily all-inclusive and is not guaranteed as to the
accuracy, and is not to be construed as representation by R.J.O'Brien & Associates. The risk of trading futures and options can be substantial. Each
investor must consider whether this is a suitable investment. Past performance
is not indicative of future results.
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 | Read Entire Disclaimer | ©2006 R.J. O'Brien & Associates |
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