Our trip began at the London office of the CME Group, located in the heart of the financial district at One New Change. The CME group is the largest commodity options and futures exchange in the world, also providing markets for interest rates, equity indexes, foreign exchange, weather and real estate, in addition to a large number of commodities. It forms a trading platform which includes the Chicago Mercantile Exchange, Chicago Board of Trade, Kansas City Board of Trade, New York Mercantile Exchange, and New York Commodity Exchange. Visit www.cmegroup.com/europe/ for more information.
After enjoying a nice lunch at Canary Warf, we proceeded by visiting the International Grains Council. The IGC consists of all parties to the Grains Trade Convention, which is a multilateral cooperation instrument which applies to trade in wheat, coarse grains, rice and oilseeds. It seeks to promote international cooperation in grains trade, improving market transparency, contribute to grain market stability and to enhance world food security. The IGC also issue a monthly Grain Market Report, providing information and analysis of global market and policy developments: trade, prices, production, consumption, stocks and ocean freight rates. It includes the latest detailed estimates and forecasts, and special notes on major topical issues. All IGC information and analytical services are provided without charge to member governments. For more information, you can visit www.igc.int/
Our next stop was the offices of DNB Markets in London, which is part of the DNB Group’s worldwide Foreign Exchange and Treasury services network. The London office has desks for Fixed Income, Currencies and Commodities. The latter category include among others energy (oil, bunker, coal etc), Forward Freight Agreements and Metal. We were given a great introduction to the DNB group and commodity trading, and the presentation ended with a case study on how you can hedge jet fuel purchases in the financial market. You can find the webpages of the London Branch of DNB at https://www.dnb.no/en/business/markets/foreign-branches/london/ficc.html
Our final stop on this day was Eagle Commodities Brokers ltd (Eagle). This is a global brokerage service provider, specializing in over-the-counter derivatives within the energy markets. Eagle’s primary focus is in Crude Oil and Products markets. In 2012 Eagle expanded into Iron Ore options, broking the first ever Platts Iron Ore Option through CME. We are very grateful to Eagle for receiving us and allowing us to see how a brokerage firm operates. For more information on Eagle Commodities Brokers, go to http://www.eaglecommodities.com
On March 3rd we visited the final post on our program, namely the London offices of the Intercontinental Exchange. Intercontinental Exchange, Inc. (ICE) is an American network of exchanges and clearing houses for financial and commodity markets. ICE owns and operates 23 regulated exchanges and marketplaces, as well as 5 central clearing houses. You can visit https://www.theice.com/ for more information about the ICE, and their products and services.
We would like to extend our thanks to all the organizations that gracefully received us and provided interesting presentations of their respective firms and operations. We would also like to thank the students for making this a pleasant trip, and for taking all “logistical challenges” in stride. Below is a group picture of the students, who appear to be quite pleased with the excursion to London.