# CTRM and derivatives pricing for brokers and FCMs | UHEDGE

> CTRM with a proprietary derivatives pricing engine for commodity brokers, FCMs and OTC providers: logged quotes, limits and term sheets.

Canonical: https://uhedge.com.br/en/para-quem/corretoras-fcm-provedores-otc

## CTRM with in-house derivatives pricing for brokers and FCMs

When the structure is passed through, whoever prices it defines your margin.

CTRM for commodity brokers, FCMs and OTC providers: derivatives pricing runs on your own engine instead of passing through the structure — and the margin — of whoever quoted it. The client asks for an accumulator with a barrier and the firm turns to whoever prices it. The quote comes back, is passed on with a mark-up, and the trade closes. The reference price for that structure, however, was built in someone else's engine. You intermediated the trade, and the margin was defined at the other end of the line.

### What usually happens

- The exotic is passed through back-to-back, which removes model risk and transfers margin setting to whoever prices it.
- Without a structured record of the flow, the firm measures neither conversion nor margin per client.
- Requests the firm cannot price with confidence go unanswered, which is unrealised revenue rather than an accounting loss.

### The two fronts

- Technology: Pricing engine with surface, skew and markup by tier in an editable policy. The firm gets its own price, not a passed-through one.
- Flow and documentation: Recorded quotes and formal term sheets, with conversion and margin history per client.
- Control: Counterparty limit checks before the trade, daily marking and an audit trail.
- Execution mandate: UHEDGE Asset Management, authorised by the CVM, is building a proprietary book and managed commodity portfolios and will contract brokerage, clearing and execution.

### If the conversation is about technology

- Margin retained per trade instead of a share received from a third party.
- A broader offerable catalogue without hiring a quant team.
- Conversion and margin measured per client.
- Limits and counterparties controlled before the trade.

### If the conversation is about execution

- We are looking for brokerage, clearing and execution for a proprietary book and for managed portfolios under mandate.
- Volumes in futures and options on the main agricultural commodity exchanges, with daily reporting and reconciliation requirements.
- UHEDGE does not route orders and is not an execution counterparty. The intermediation role remains entirely yours.

### Management track record

- Hedge alpha: 2.6 c$/lb. Average reduction in hedge price versus a passive futures lock.
- Information Ratio: 3.5. Consistency of alpha generation adjusted for tracking error.
- Sharpe Ratio: 1.40. UHEDGE commodities fund, absolute return.

### Suggested next step

A forty-five-minute conversation with both agendas on the table, or with just one of them, as you prefer. For the technology front, we suggest bringing a real structure quoted recently. For the execution front, we can present the expected volume and instrument profile.

### Frequently asked questions

- What is a CTRM? Commodity Trading and Risk Management: the system that consolidates quotes, positions, exposure and risk across commodity trades. At UHEDGE it includes the exotic derivatives pricing engine.
- Why should a commodity broker price in-house? Because when the structure is passed through, the margin is set by whoever priced it. With your own engine you measure fair value and decide the markup.
- Does UHEDGE compete for the broker's client? No. UHEDGE acts as asset manager and technology provider; the commercial relationship stays with the house.

## Who leads and notes

### Who leads it

Rafael Lins dos Anjos, founding partner. Mechatronics Engineer from Poli-USP, with master's degrees in Economics from Insper and in Finance from London Business School. Around twenty years in global banks and commodity merchants, including Santander, Macquarie in London, Banco Pine and ED&F Man, where he headed the global OTC desk. CGA and CGE certified by ANBIMA.

### Sources and notes

Track record: results of UHEDGE managed hedge portfolios, measured against a passive sugar futures (ICE) benchmark over an auditable historical series. The commodities fund began operations in November 2024. Calculation memo and methodology available on request.

Past performance is no guarantee of future results. Informational material only; not a public offering, an investment recommendation or a guarantee of results. Derivatives transactions involve risk of loss. The terms of each service are defined by contract.

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UHEDGE — asset manager regulated by Brazil's CVM. contato@uhedge.com.br · +55 (19) 3326-1178