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Services & Products
Risk Management with FS-Innovators’ Covar Model™FS-Innovators developed a Covariance Model that enables food/agro/energy companies to gain insight into the performance of their portfolio in terms of risk and return. To manage the volatility of the net cash flow (profit) one needs to understand the relationship between the inputs (buy prices), outputs (sale prices) and inputs and outputs. These relationships can be defined in terms of co-variances. The FSI Covar Model™ identifies and quantifies the company’s residual risk, natural hedge and can be used to increase shareholder value by optimizing the company’s risk return trade-off. The FSI Covar Model™ provides, based on the company’s internal input /output relationships, the optimal combination of risk management instruments to ensure the optimal risk-return profile. Optimal Hedging of Commodity ExposuresIn adition to our global risk management solution with help of Covar Model™, FS-Innovators provides services on optimal hedging of specific agro or energy commodities.
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FSI World Wheat Index™Until recently, the market for wheat has been relatively stable compared to other commodities. As a result, the basis (i.e. the spot price minus the future price, important for hedgers) was relatively easy to predict. Recently, however the basis has become less predictable causing difficulties for hedgers. FS-Innovators developed a FSI World Wheat Index™ that will be targeted at investors. With this product, we are able to contribute to better functioning wheat futures market and better investment possibilities in global instead of local wheat markets. By carefully selecting specific markets, we created and evaluated 16 different indexes and out of these, we have chosen the optimal index that provides investors the opportunity to invest in 'global' wheat with the best characteristics in terms of risk and return. |
Other products that we have developed:
- FSI Cement Indices (USA, Europe and Asia)
- Option on Liquidity (in cooperation with Prof. Barry Goss, FMRA)
- Stock Index/ FX Futures contract (in cooperation with Prof. Barry Goss, FMRA)
For more information on one of our products, please contact us.
Development of Innovative Dealing Rooms
FS-Innovators B.V. develops innovative trading rooms where positive features of ‘open outcry’ are combined with advantages of electronic trading. This innovative concept will be launched in Champaign, IL, U.S.A in early 2009. Dealing rooms for other countries, amongst others the Netherlands and Brazil are planned to open respectively in 2009 and 2010.
In the U.S., FS-Innovators and One Main Development are developing a new trading and dealing concept for professionals in commodity and financial futures, options and equities. The International Bourse at M2 is being built at 301 North Neil Street, Champaign, IL.
For more information, prices, developments and how to lease a seat, view our latest Bourse presentation and/or visit the website www.internationalbourse.com .
Strategic Management Consulting
FS-Innovators also consults management teams and boards of directors to evaluate current strategy as well as possible strategies for the future by facilitating the decision making process of the team. These sessions are chaired by Professor dr ir Joost M.E. Pennings.