Working Capital Solutions

At Marex Hedging Solutions, we provide tailored solutions to help businesses optimise their working capital through the provision of credit facilities. Our expertise is demonstrated through structures such as Liquidity Swaps and synthetic Re-purchase (sale and buyback) transactions, designed to help manage margin requirements and unlock the value of your capital.

What is a Liquidity Swap?

A Liquidity Swap is a process where an exchange-traded futures position is transferred from a clearing account to Marex Hedging Solutions and re-entered through an over-the-counter (OTC) position. These transactions are possible across almost any exchange-traded futures underlyings. By executing a liquidity swap, clients can eliminate their Initial Margin (IM) requirements and free working capital which can then be reallocated to other hedge-related activities.

What is a Synthetic Repurchase Transaction

For clients holding an inventory of Emission Certificates (E.G. EUAs or UKAs) who need short-term working capital, Marex Hedging Solutions can facilitate synthetic Repurchase transactions through a spot sale and forward buyback. This allows clients to achieve liquidity by receiving cash upfront from the spot sale, while ensuring certainty to receive back the underlying assets in the future at maturity. (These can be structured on a variety of other certificates too, such as UK Road Transport Fuel Certificates)

Marex Hedging Solutions’ innovative liquidity management tools, including our Liquidity Swap and synthetic Repurchase solutions, are designed to optimise your working capital and support your trading strategies. We tailor each solution to the unique requirements of our clients, providing a blend of operational efficiency and financial flexibility.

For more information or to discuss how our solutions can work for you, please contact us.