Commodity OTC desk with measured margin, not estimated
The spreadsheet solves the price. The desk's margin is still an estimate.
Commodity OTC desk: every derivatives structuring quote and commodity option is logged, with theoretical mid, markup and margin per client. The desk receives the quote request and answers within minutes, as it always has. The calculation works, the structure is sent, the client accepts or declines. What is not kept is the record of the theoretical mid at that moment and the markup actually applied. Months later, when someone asks about margin per client or the quarter's conversion rate, the answer has to be reconstructed from memory.
Get in TouchWhat usually happens
- Without a structured record of the quote flow, the desk cannot measure conversion rate or realised margin per client and per product.
- The volatility surface is built manually and grows stale between one quote and the next.
- Each new structurer reproduces the previous one's spreadsheet, which limits delegation with governance and makes operational risk grow along with the team.
What the platform covers
| Module | What it delivers |
|---|---|
| Quoting and recording | RFQ flow with parameters, price verification and submission to the broker. The client request enters as a traceable record. |
| Pricing | Volatility surface, skew and dealer pricer with markup by tier, defined in an editable policy instead of individual judgment. |
| Structuring | Vanillas, average price and average strike, fences, accumulators with and without barriers, and zero-cost structures. |
| Documentation | Formal term sheet with projection and knock-out probability, delivered to the client and archived at the desk. |
| Desk management | Quote funnel, conversion rate, volume and average margin per client, with limit checks before the trade. |
What becomes measurable
- Conversion rate per client, product and notional tier.
- Realised markup against the policy's theoretical markup.
- Response time for each quote request.
- Limit compliance without manual exceptions.
Coexistence with existing infrastructure
- The platform is pre- and post-trade. It does not route orders to exchanges, nor replace the firm's booking system or clearing.
- It consumes the price sources you already license, including Refinitiv, Bloomberg, Datagro and Broadcast.
- Executed trades are captured via SFTP, with segregated profiles across desk, middle office and management.
The same methodology applied to our own asset management
2.6 c$/lb
Hedge alpha
Average reduction in hedge price versus a passive futures lock.
3.5
Information Ratio
Consistency of alpha generation adjusted for tracking error.
1.40
Sharpe Ratio
UHEDGE commodities fund, absolute return.
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.
See the full track recordSuggested next step
A forty-five-minute technical conversation. We suggest the desk brings the last complex structure it quoted, so we can configure the environment with your underlying and volatility before the meeting. We make available in advance the methodology technical note and the option of parallel validation, in which the desk prices in both environments over an agreed period and compares the results before deciding.
Get in TouchFrequently asked questions
What is a commodity OTC desk?
It is the desk that quotes and books tailor-made over-the-counter derivatives — accumulators, barriers, Asians — off-exchange, directly with the client. UHEDGE supplies the pricing engine and the audit trail for every quote.
How do you measure an OTC desk's margin?
By logging the theoretical mid at quote time and comparing it with the price sent to the client. The difference is the effective markup, consolidated by client, product and period.
Do we have to replace our infrastructure?
No. The platform sits alongside the existing ERP, risk system and broker, covering pricing, RFQ and margin measurement.
Related profiles
Commodity Brokers, FCMs and OTC Providers
Your own pricing engine instead of back-to-back pass-through, with retained margin, measured conversion and an execution mandate.
OTC Desks at Mid-Sized Banks and Securities Brokers
Your own engine to price agricultural volatility, or referral to the asset manager, to capture hedging revenue from the existing credit book.
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.