ENVIRONMENTAL PRODUCTS
CARBON
Since its inception, FIS has been instrumental in assisting shipping clients with their hedging requirements for commodities including FFA’s, fuel oil and wet freight. The same can now be said about carbon, with FIS supporting clients with full regulatory adherence within the EU Emissions Trading Scheme (EU ETS), and the UK ETS equivalent. Through listed futures and options contracts (EUAs & UKAs) as well as via the OTC route, FIS is well-placed to help manage risk and execute hedging strategies.
FIS also provides access to the voluntary carbon market, both in exchange-traded futures and physical OTC. In this growing market, FIS offers a boutique service to assist clients in sourcing specific verified carbon emission offset credits from leading registries that suit their desired ESG and/or net-zero strategy. We are also a listed broker for the CME futures (GEO, N-GEO, C-GEO), and the ICE nature-based equivalent contracts.
Video References: ICE, CME, European Commission
ammonia
Ammonia is one of the fastest growing ‘next generation’ fuels with multiple uses, including electricity generation, vessel fuel, and fertiliser in addition to numerous applications in the refrigerant, textile, mining, pharmaceutical, feedstock, chemical production, and water treatment industries. FIS has access to a deep liquidity pool in the new ammonia market, with counterparties ranging from Oil majors to Chemical companies to Utility companies and power generators and ammonia merchants. FIS’s mature fertiliser business and its dominant position in the freight market gives us access to an unparalleled range of counterparties and diversity of interests.
FIS offers liquidity in OTC market swaps and ICE cash settled futures. ICE contracts based on Argus NW Europe cfr/duty paid index were launched in Q1 2023. FIS completed the first ICE AOA Argus ammonia outright.
Pulp & PAPER
Paper plays a key role in our daily life. Papers are made with the pulp of wood, which is an Eco-friendly product. Much like the iron ore market in the 2000s, the current paper market had traditionally been longer term contracts which has moved more recently towards more spot business. This spot business therefore requires the ability to hedge exposure, and the time is ripe for developing the futures market.
With an increasing move towards spot business and diminishing long term contracts, companies are exposed to adverse price movements. FIS has therefore partnered with NOREXECO and Fastmarkets to further develop the pulp futures markets to give companies the ability to hedge future exposure, as well as others to trade a growing commodity market.
The global efforts towards decarbonisation and ESG initiatives has spurred the interest for sustainable commodities and pulp provides an easy avenue into investing in green commodities. We broke all the listed NOREXECO contracts on both European and Chinese softwood and hardwood pulp contracts.
Video References: FIS, NOREXECO
battery metals
FIS has worked closely with the CME and Fastmarkets to offer cleared solutions for market participants – facilitating trading of the newly launched cleared battery metal futures contracts. Our diverse client base and strong data analysis has allowed us to successfully promote the contract to traders and producers alike. Since their launch in December 2020, FIS has dominated brokered market share in the cobalt space, and helped grow liquidity to establish this as the leading global battery-metal futures contact.
FIS continue to work closely with both Fastmarkets, CME and SGX, to successfully drive forward the CME-cleared lithium hydroxide contract, and the upcoming SGX-cleared battery metals suite.
