AN INTRODUCTION TO MAREX SPECTRON

AN INTRODUCTION TO
MAREX SPECTRON
OVERVIEW
A GLOBAL LEADING COMMODITY BROKER
ENABLES TRADE ON ANY PLATFORM THE CLIENT WANTS: VOICE, SCREEN AND OPEN-OUTCRY
600 EXPERIENCED MARKET PROFESSIONALS OPERATING FROM A GLOBAL OFFICE NETWORK
A PORTFOLIO OF CLEARING SERVICES CLEARING C.1.5 MILLION CONTRACTS DAILY
CENTRALISED CLEARING HOUSE ACCESS FOR OFF-EXCHANGE ENERGY MARKETS
LIVE AND HISTORIC MARKET DATA ACROSS OFF-EXCHANGE COMMODITY MARKETS
LEADING TECHNOLOGY SOLUTIONS INCLUDING LOW LATENCY EXECUTION VIA CO-LOCATION
DEDICATED RESEARCH AND INTELLIGENCE ON ALL OF OUR COMMODITY MARKETS
NAMED COMMODITY RESEARCH HOUSE OF THE YEAR 2014 BY ENERGY RISK MAGAZINE
SHAREHOLDERS EQUITY OF $349 MILLION AND TOTAL ASSETS C. $1 BILLION
SUBSTANTIAL REGULATORY CAPITAL AND LIQUIDITY BUFFERS
REGULATED BY THE FCA IN THE UK, CFTC IN THE USA, SFC IN HONG KONG AND MAS IN SINGAPORE
“Our strategy is simple: we create deep liquidity pools and build substantial market share so that we can access markets, and
operate intelligently within them: more intelligently than less focused rivals. We succeed in that by putting the client first,
innovating only where it brings them value, never taking positions unless it helps to create the markets."
John Wall, CEO, Marex Spectron Group
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OUR HISTORY
600+
employees
100
employees
Nov 2005
Marex
Group
Established
Dec 2010
Acquired by
Current
Shareholders
Jan 2011
Feb 2011
May 2011
Gains SFC License Opened regulated Acquired
Hong Kong office Spectron Group
Became a full US and data centre
clearer for ICE
Futures Inc. and
CME Group Inc.
Jun 2011
Merged Group
re-branded as
“Marex Spectron”
Jul 2011
Acquired Global
Markets Division,
Eden financial
May 2012
Acquired ProTrader Division
of Schneider
Trading
Associates
Mar 2014
Capital Markets
Services Licence
granted by
Monetary
Authority of
Singapore
Opened data
centres in NY
and Chicago
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OUR SERVICES
PRODUCTS
– Metals
– Energy
– Environmental
– Soft and Agricultural Products
– Freight
– Securities
SERVICES
– Clearing
– Direct Market Access
– Market Analytics
– Independent Research Services
– Market Data
– Voice and Electronic Execution
CLIENTS
– Large Industrials
– Commodity Producers and
Consumers
– Oil Majors
– Trade Houses
– Utilities
– Money Managers
– Hedge Funds
– Banks and Brokers
– Professional Traders
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GLOBAL OFFICES
NORTH AMERICA
EUROPE
ASIA
New York
360 Madison Avenue
Third Floor
New York
NY 10017
Tel: +1 212 584 3860
London - Head Office
Level Five
155 Bishopsgate
London EC2M 3TQ
Tel: +44 (0)207 655 6000
Hong Kong
Suite 1107 ICBC Tower
11th Floor
3 Garden Road
Central, Hong Kong
Tel: +852 3909 8388
Washington State
500 Broadway Street
Suite 260
Vancouver
WA 98660
Tel: +1 360 892 3300
Connecticut
600 Summer Street
Stamford
CT 06901
Tel: +1 203 327 0009
London – City
4th Floor
25 Copthall Avenue
London EC2R 7BP
Te:l +44 (0)20 7664 4200
Frankfurt
Romerstrasse 31
63486 Bruchkobel
Germany
Tel: +49 6181 9399 470
Singapore
8 Marina View
#33-06 Asia Square Tower 1
Singapore 018960
Tel: +65 6413 0075
Oslo
3rd Floor
Kronprinsesse Marthas
Plass 1
0160 Oslo
Tel: +47 23 89 42 00
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MARKET
ACCESS
AND
PRODUCTS
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ENERGY : OIL & PETROLEUM PRODUCTS
Marex Spectron has been brokering crude oil and petroleum products since 1988 and has one of the most
experienced teams in the industry
Overview
Main markets
Contracts
— Broking crude oil and petroleum
products since 1988. Teams in the
UK, North America and Asia.
— Crude Futures & Options
— Intermediates transactions in a
variety of physical and financiallysettled crude oil and petroleum
products including outrights,
spreads, swaps and inter-grade
swaps.
— Bio Fuel
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— Historical market data available
for
OTC Fuel Oil and Gas Oil
— Heating Oil
— WTI
— Brent
— Fuel Oil & Bunkers
— Gasoil
— Gasoline
Physical
Futures
Swaps
Options
Capacity
Gas-In-Store
Index Deals
Location Spreads
Time Spreads
Block Futures (Asia)
Clearing
— ICE
— CME – Nymex
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ENERGY : NATURAL GAS
Marex Spectron operates one of Europe's largest marketplaces for natural gas and has a significant presence in
the US
Overview
Main markets
Contracts
— Hugely experienced team with
major market shares in core
products
— NBP (UK)
— Integrated OTC system allows
clients to trade a variety of
natural gas products at all major
hubs in Europe and the US
— Zeebrugge (BE)
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— Exchange brokering team offers
clients first class execution and
clearing for ICE Futures Europe
gas products
— Extensive market data on major
European products and a range
of leading indices
— OTC clearing available
— NCG (DE)
— Gaspool (DE)
— TTF (NL)
— Baumgarten (AU)
— PEG (FR)
— PSV (IT)
Physical
Swaps
Options
Futures (EU)
Capacity (EU)
Gas-In-Store (EU)
Index Deals (EU)
Location Spreads (EU)
Time Spreads (EU)
Look-alikes (US)
Clearing
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CME (EU)
BlueNext (EU)
Apx-endex (EU)
ICE (EU & US)
CME – Nymex (EU & US)
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ENERGY : ELECTRICITY
Marex Spectron operates one of Europe’s biggest and most established marketplaces for electricity
Overview
Main markets
Contracts
— Involved in the power markets
since before they were
deregulated
— Germany
— The first broker to set up a
successful electronic trading
platform for electricity
— UK
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— Billions of euros worth of power
now trade through this platform
and our voice brokers every
month, across all of Europe’s
main markets
— Belgium
— Czech
— France
— Swiss
Physical
Options
Spark Spreads
Dark Spreads
Clearing
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EEX
CME
Apx-endex
ICE
— Holland
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ENERGY : FINANCIAL & PHYSICAL COAL
Financial Coal
Marex Spectron launched the first online marketplace for coal in 1999
Overview
Main markets
Contracts
— A hybrid electronic and phone
brokering service for global coal
swaps with teams in London,
Singapore and Washington State
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— The first broker to offer Chinese
swaps coverage and was also a
pioneer in developing the
Australian and Indonesian coal
swaps
API#2
API#4
CFR China
FOB Indonesia
APINewc
Swaps
Options
Dark Spreads
Implied Freight
Clearing
— EEX
Physical Coal
Marex Spectron offers access to a vast network of spec and off-spec thermal and coking coal market
participants
Overview
Main markets
— Liquidity & source pricing on
physical and off-spec markets
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— Hybrid voice & screen broking
— Unbiased forward and spot rates
API2
API4
NEWC
API5
API8
FOB Indonesia
— Daily market data reports
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ENERGY : IRON ORE
Marex Spectron offers access to deep liquidity across a comprehensive range of Iron Ore markets
is able to provide clients all over the world with access to both the cleared and non-cleared, physical and
financial, OTC Iron Ore markets. We provide access to Iron Ore markets through dedicated desks in Europe and
Asia.
Overview
Main markets
Contracts
— Access to both the cleared and
non-cleared, physical and
financial, OTC Iron Ore markets
— FOB Tubarao
— Swaps
— FOB W. Australia
— Futures
— Hugely experienced teams based
in Europe and Asia
— CFR China
Clearing
— Voice broking service
— SGX
— Billions of euros worth of power
now trade through this platform
and our voice brokers every
month, across all of Europe’s
main markets
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ENERGY : OPTIONS
Marex Spectron has more than a decade’s experience of broking energy options
established a dedicated energy options desk in Europe over 10 years ago, and continues to have the focus and
expertise in this area.
Covering all major European gas, power, emissions and coal options markets, trading is conducted exclusively
via the telephone. The team also produces a market leading price/volatility report for options traders and
analysts.
Overview
Main markets
Contracts
— Dedicated energy options desk in
Europe
— Gas: NBP & TTF
— Options - CSOs
— Options - APOs
— Swaptions
— Covering all major European gas,
power, emissions and coal
options markets
— Voice broking service
— Market leading price/volatility
report for options traders and
analysts
— Electricity: UK & Germany
— Oil: Crude Oil & Oil Products
— Coal
— EUA emissions
Clearing
— CME
— EEX
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ENERGY : US & EU EMISSIONS
Marex Spectron has been actively involved in environmental markets since 2002
Overview
Main US markets
Contracts
— Broker of choice for emissions
market participants across
Europe and the US
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— Allowances
— Certificates
— Options
— All key voluntary and mandatory
emissions markets are covered
— Voice broking service, exchange
execution in Europe
RGGI
California Reclaim
ERCs
Houston NOx/SO2
NOx allowances
New York NOx/SO2
SO2 allowances
CSAPR
Clearing
— ICE – CCFE (US)
Main EU markets
— GreenX (US)
— EUAs
— ICE-ECX (EU)
— LCH.Clearnet (EU)
— NordPool (EU)
— BlueNext (EU)
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ENERGY : US RENEWABLE ENERGY
Marex Spectron is one of the oldest and largest brokers of Renewable Energy Certificates (RECs) in the US for
both the voluntary and compliance markets
It has the experience and contacts to help generators maximize their renewable assets and help buyers
efficiently procure the supply they need. Marex Spectron has been involved in numerous pioneering trades on
the REC markets over the years, and continues to contribute strongly to the development of these markets.
As part of its service, it offers a range of pricing summaries, which are viewed by hundreds of renewable energy
professionals.
Overview
Main markets
Contracts
— Experienced team excels at
maximising renewable assets and
ensuring generators can procure
the supply they need
Compliance
— NEPOOL
— RECs
— A market pioneer in the trading
of REC market
— Market leading price summaries:
daily, weekly, monthly, trade
datasets and historical pricing
— PJM
— Options
— Texas
Voluntary
— National Green-e
— WECC Green-e
— Voice broking service
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ENERGY : US BIOFUELS
Marex Spectron has one of the most active and established biofuels brokering teams in the US.
Overview
Main markets
Contracts
— Covering ethanol and biodiesel, at
all of the major trading hubs
across the US
— East Coast
— Swaps
— West Coast
— Crush spreads
— Can facilitate the trading of crush
spreads (the difference between
the price of corn and ethanol)
— New York Harbour
— Chicago (Argo)
— Voice broking service
— Gulf Coast
— Midwest
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FREIGHT
Marex Spectron's Freight desk is a key operator in the marketplace for tanker freight derivatives and options,
with broker offices in London, Oslo and Singapore. We offer voice and screen trading and provide spreads and
options on all routes
Overview
Routes
Contracts
— Brokers in London, Oslo and
Singapore facilitating voice and
screen trading including spreads
and options on all tanker routes
Dirty
— Swaps
— Options
— An integrated screen allows
clients to commingle clearers
from NOS, CME, ICE and LCH
with contracts on Months,
Quarters and Calendar years.
— Time and Quality spreads are also
offered on all the major routes
— Large databases of historical
information on tanker routes,
providing data and
analytical services
— VLCC: TD3
— Suezmax: TD5
— Aframax: TD7
Clean
— West MR: TC2, TC6, TC14
— East MR: TC12
Clearing
— NOS
— LCH.ClearNet
— ICE
— CME - Clearport
— East LR1: TC5
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METALS
Marex Spectron is one of the world’s leading metals brokers, responsible for more transactions on the London
Metals Exchange than any other member and with significant market shares in North America and Asia
Overview
Main Markets
Contracts
— Hugely experienced teams in
London, New York and Hong
Kong
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— A Category 1 LME member
— Responsible for 25% of LME Ring
transactions and 35% of LME
Select electronic transactions
— 24-hour metals market coverage
— Leading electronic trading
solutions for the LME
Copper
Tin
Aluminium
Steel
Zinc
Cobalt
Lead
Molybdenum
Nickel
Platinum
Gold
Silver
Palladium
Aluminium Alloy
Spot
Futures
Forward
Options
OTC - Warrants
OTC – Averaging
Clearing
— CME – Comex, Nymex, CBOT
— TOCOM
— Direct market access via E-trader,
PAT Systems, TT as well as Marex
Spectron’s own systems
— Voice broking service
— Daily market comment and
insight on base and precious
metals markets
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AGRICULTURAL PRODUCTS
Marex Spectron’s highly experienced specialist team has major market shares in Cocoa, Coffee and Sugar
markets and a significant presence in many other global markets
Overview
Main Markets
Contracts
— Hugely experienced team based
in London and New York
— Coffee
— Futures - on and off exchange
— Options - on and off exchange
— Hybrid voice, exchange floor and
electronic broking service
— Direct market access via E-trader
and TT
— Product and market analysis
— Cocoa
— Sugar
— Cotton
— Soybeans
— Rapeseed
— Corn
— Milling Wheat
Clearing
— CME – CBOT
— NYSE Euronext
— ICE – Nybot
— ICE Europe
— MGEX
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SECURITIES
Marex Spectron is a premier specialist broker of cash equities, fixed income and equity derivatives
Equities
Fixed Income
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Cash Equities - leading intermediary for both sellside
and buy-side
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Broad-touch execution with
high-touch care orders combined with access to
smart order routing/algorithmic tools, light
and dark liquidity pools
Access to competitive pricing,
order flows and trading ideas across a broad
spectrum of
Fixed Income securities
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Government bonds, Sovereign debt, Supranational,
Covered bonds
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Equity Finance - agency intermediation in cash and
single stock futures
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Financials, Corporate bonds,
ABS, Structured products, Distressed Debt
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Coverage of an extensive
Pan European End Customer
Client base and Investment Banks
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Matching client orders in illiquid, corporate and
government bonds
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Access to competitive pricing,
order flows and trading ideas
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GLOBAL FINANCIAL FUTURES AND OPTIONS
Marex Spectron provides 24-hour, independent futures and options coverage on all major global exchanges
Our specialist voice broking team analyses market themes in both fixed income and equity index products as
they develop and generate intelligent trade ideas for individual and institutional clients. The financials team
also sources new pools of liquidity and provides expert execution of complex options strategies.
Overview
Intelligence
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Specialist voice broking team
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Market themes analysis delivered in real time
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Sourcing new pools of liquidity on a daily basis
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Intelligence-driven approach delivers differentiated
options for clients
Trade ideas generated for institutional and
individual clients
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Major market shares on several exchanges
Analysis of macro-economic environment delivered
weekly
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Access to competitive pricing, order flows and
trading ideas
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INTELLIGENCE
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GLOBAL COMMODITY RESEARCH
FUNDAMENTAL RESEARCH & ANALYSIS
Expert fundamental analysis on the energy,
ferrous metals and freight markets.
DEEP PHYSICAL MARKET KNOWLEDGE
A unique combination of real market knowledge,
advanced modeling techniques and strong links
with the academic world
PRICE DISCOVERY & FUNDAMENTALS
The team believes fundamentals ultimately drive
price discovery for commodity markets and that
frequently fundamentals are incorrectly priced
by market forces or their impact is mistimed.
UNIQUE RESEARCH PLATFORM
Cross-market research platform based on
sophisticated and rigorously tested proprietary
fundamental and macroeconomic models
Ability to identify dislocation in fundamentals in
the most appropriate time frames, in turn
revealing potential cross-market/crosscommodity arbitrage opportunities.
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MARKET DATA
LIVE PRICES
Real-time screens and apps for
energy, freight and emissions
prices.
REFERENCE PRICES
Index and closing prices across
gas, power, coal, oil products,
emissions, freight and options.
HISTORICAL PRICES
Comprehensive historical datasets
of closing prices and actual
trades –
energy, freight and emissions
market data going back as far as
2000.
PUBLICATIONS
A range of extremely popular
publications and reports
providing insight, commentary
and news on different markets.
Metals, Softs and Ags, FX and
Energy.
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MARKET ANALYTICS
A SYSTEMIC FRAMEWORK FOR
GLOBAL CAPITAL MARKETS
Marex Spectron analyses capital
flows across a breadth of
markets, from a proprietary
database.
Over 400 risk assets, both off
and on-exchange
Holistic analysis of the system as
a whole, not as segregated
liquidity pools. Liquidity analysis
at both the
micro and macro level.
Dynamics of the system are
tracked via interactive, browserbased risk management tools.
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INTEREST-RATE STRATEGIES
BESPOKE CLIENT PROJECT
AND IDEA GENERATION
– Fixed income derivative trade ideas
– Custom research for clients
– Volatility analysis
– Fair value analysis of fixed-income
derivatives
– Futures roll research and advisory
– Longer-term thematic research
publications
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INDEPENDENT RESEARCH SERVICES
– A unique, consultancy-based intermediary dedicated to providing
a holistic and fully flexible service reflecting cost-effective and
best-of breed impartial independent research
– Access to conflict-free, outside-the-box thinking and analysis
as well as to cutting-edge experts, products and services
– Integrity and reliability in terms of own services as well as those of IRPs
– Open-ended internal resources, notably including, negotiating skills
and experience, administration structure support and risk-management
input and solutions
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EXECUTION AND
TECHNOLOGY
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CROSS-ASSET SALES
A CENTRALISED SALES AND EXECUTION
HUB FOR MAREX SPECTRON
– Liquidity
– Technology
– Analytics
ACCESSING ALL LIQUIDITY POOLS, INTERNAL
AND EXTERNAL, THROUGH A SINGLE POINT
OF CONTACT
Cross-Asset Sales
Off-Exchange Liquidity
Listed Execution
Market Analytics
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EXCHANGE CONNECTIVITY
NORTH AMERICA
EMEA
ASIA
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American Stock Exchange
CME US
ICE Canada
ICE US
Kansas City Board of Trade
Minneapolis Grain Exchange
Montreal TMX
NASDAQ
NYSE
NYSE ARCA
NYSE LIFFE US
NYPC
ONE Chicago
DME
DGCX
Eurex
Euronext Amsterdam
Euronext Brussels
Euronext Paris
Euronext Lisbon
ICE Europe
IDEM
LIFFE
London Metals Exchange
London Stock Exchange
MEFF
OBX
OMX Copenhagen
OMX Finland
OMX Sweden
Swiss SWX Europe
Swiss Virtx
TURKDEX
Wiener borse
Xetra Ireland
Xetra Germany
Australian Stock Exchange (ASX)
Bursa Malaysia Exchange
Hong Kong Exchange
NZFOE
Osaka Stock Exchange
Singapore Exchange
Tokyo Commodity Exchange
Tokyo Financial Exchange
Tokyo Stock Exchange
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VANTAGE VIEW SCREEN
MAREX SPECTRON HAS
UNRIVALLED ACCESS TO
PROPRIETARY DATA FROM THE
WORLD’S LIQUID OTC MARKETS,
OFFERING VIEW SCREEN
ACCESS AND TRADING
SCREENS TO INTERACT WITH
THE FULL SPECTRUM OF OTC
PRODUCTS
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VIEW OF THE EASYSCREEN TRADING PLATFORM
FUNCTIONALLY RICH AND EASY
TO USE, THIS PLATFORM CAN
BE CUSTOMISED, WHITE
LABELED OR CONNECTED VIA
FIX TO CUSTOMERS
PROPRIETARY FRONT END
31
CLEARING
32
CLEARING SERVICES
OUR PORTFOLIO OF CLEARING SERVICES ACROSS
GLOBAL FUTURES & OPTIONS MARKETS CLEAR
C1.5 MILLION CONTRACTS DAILY
– Dedicated client service
– Extensive global coverage from our trade operation executives
– A suite of algorithmic products for trade give-up allocation and clearing
– Multi-product cross-margining and single consolidated reporting
33
CORPORATE
GOVERNANCE
34
ROBUST CORPORATE GOVERNANCE
BOARD OF DIRECTORS
Non-Executive Chairman
Jeremy Isaacs
Co-Founding Partner of JRJ
Group
Executive Directors
Steve Sparke
Chief Operating Officer,
Marex Spectron
Non-Executive Directors
Lord Stanley Fink
(Independent)
CEO of International Standard
Asset Management,
ex-CEO of Man Group
Simon Heale
(Independent)
Non-Exec. Independent
Chairman of the Board of
Kazakhmys, ex-CEO LME, exNon-executive director and
Chairman of
Panmure Gordon
Roger Nagioff
Co-Founding Partner, JRJ
Group
EXECUTIVE COMMITTEE
Chief Executive Officer
John Wall
Ian Lowitt
Chief Financial Officer,
Marex Spectron
Vittorio Pignatti-Morano
Principal, Trilantic Capital
Partners
Joe Cohen
Principal, Trilantic Capital
Partners
Peter Kadas
Principal, BXR Partners
Daniel Hallgarten
Principal, BXR Partners
Peter Sugarman
Partner, JRJ Group
Carla Stent
Director, MSC Consulting
John Wall (CEO)
Steve Sparke (COO)
Ian Lowitt (CFO)
Kevin Nutt (CRO)
Hunter Baldwin (Head US & Co-Head Energy)
Jeremy Elliot (Co-Head Energy)
Simon van den Born (Head Metals)
Jonathan Parkman (Head Agriculturals)
Yvonne Poole (Human Resources)
Ed Paget-Brown (Legal & Compliance)
BOARD SUB COMMITTEES
Audit & Compliance Committee
Simon Heale
Joe Cohen
Peter Sugarman
Daniel Hallgarten
Risk Committee
Stanley Fink
Roger Nagioff
Daniel Hallgarten
Vittorio Pignatti
Nomination & Remuneration Committee
Jeremy Isaacs
Peter Kadas
Vittorio Pignatti
Carla Stent
35
DISCLAIMER
This presentation has been prepared by Marex Spectron for information purposes only.
Marex Spectron does not give any representation or warranty, whether express or implied,
as to the accuracy, completeness, currency or fitness for any purpose or use of any
information
in this presentation.
Information in this presentation should not be considered as advice, or as a recommendation
or solicitation to purchase or otherwise deal in securities, investments or any other products.
It has been prepared for institutional clients is not directed at retail customers and does not
take into account particular investment objectives, risk appetites, financial situations or needs.
Recipients of the presentation should make their own trading or investment decisions based
upon their own financial objectives and financial resources.
This presentation may contain forward looking statements including statements regarding our
intent, belief or current expectations with respect to Marex Spectron’s businesses and
operations, market conditions, results of operation and financial condition, capital adequacy,
specific provisions and risk management practices. Readers are cautioned not to place undue
reliance on these forward looking statements which may be subject to change without notice.
While reasonable care has been used in the preparation of forecast information, actual results
may vary in a materially positive or negative manner. Forecasts and hypothetical examples are
subject to uncertainty and contingencies outside Marex Spectron’s control. Past performance
is not a reliable indication of future performance.
The Marex Spectron® group of companies includes Marex Financial Limited, Marex USA
Limited, Marex North America LLC, Marex Hong Kong Limited, Spectron Commodities Futures
Inc, Marex Spectron International Limited, Spectron Commodities Limited and Marex Spectron
Securities LLP (individually and collectively “Marex Spectron”).
This presentation was approved by Marex Financial Limited (“MFL”). MFL is incorporated
under the laws of England and Wales (company no. 5613061 and VAT registration no. GB 872
8106 13), is authorised and regulated by the Financial Conduct Authority (registration number
442767) and is a member of the London Stock Exchange. MFL’s registered address is at 155
Bishopsgate, London, EC2M 3TQ.