Risk Management for Commodities and Loans under one Roof
The merger results in an independent exchange for the product lines commodities and credits. It is the goal of the exchange to offer effective risk management services and create market transparency.
Trading is concentrated in a public market place and settled via stan-dardised process flows. The objects of trading in the commodities and credit product lines may thus be more easily exchanged, access to in-formation about prices and turnover becomes simpler. In addition, costs will be reduced in the medium term – through synergy effects in the ar-eas of personnel, technology, capital and market orientation.
„Our plan to utilise on the one hand the common business purpose of risk management and on the other hand the synergy potential in favour of our clients convinced our shareholders” the future exchange board members Paul-Gerhard Kopatz, Gerrit Schulken and Michael Klein re-port unanimously.
Joint Public Market Place
DEKREBO and WTB started in late 2004 to think about the concentra-tion of their competencies. Motivation was the correspondence of orien-tation and core competence: the risk management via an independent market place.
The WTB, in operation since 1998, is an exchange under public law in accordance with the German Exchange Law. Its focus is on risk reduc-tion and the creation of market transparency. Thus the trading in agricul-tural futures provides producers, traders and processors with the possi-bility to achieve price and hence calculation certainty at an early stage. They profit from the market price transparency by utilising the published prices and turnover figures as basis for their production and marketing decisions. In addition, the WTB also offers all classical functions of a commodity futures exchange, e.g. opportunity oriented investment.
The DEKREBO Kredit Börse Deutschland is also geared to risk man-agement. Since October 2004, the private market place has been func-tioning across banking groups as a link between buyers and sellers of claims. Business goal is the trading of individual loans for the active management of credit portfolios. DEKREBO’s clients are thus able to reduce lump risks and profit from extended possibilities in the granting of loans. They, like the WTB-clients, thus gain an increase in flexibility and competitiveness.