working capital. Morgan Stanley was responsible for all supply product offtake and inventory management. The Consortium jointly maximised refinery operations. On termination of the agreement Morgan Stanley undertook a complex evacuation of hydrocarbons on site in conjunction with refinery staff. Morgan Stanley’s expertise in structured supply/offtake transactions enabled the Consortium to execute the agreement within three weeks of initial engagement. This unprecedented timeframe secured ongoing crude supply and enabled the administrator to offer Coryton for sale as a fully functioning refinery.
The size and complexity of this deal cannot be overlooked. Morgan Stanley were the driving party as they were the Consortium partner which understood refineries from a physical perspective as well as how to manage commodity risk effectively – sourcing supplies and offloading inventory. AtlasInvest were brought in to manage the refinery, while KKR were present to secure the capital requirements. For such a complex transaction to come together in such a short period of time – which was critical in giving the administrator a good chance of making a sale and securing jobs at the site – is what really stands out in this deal. For Coryton, re-start-up costs and risks were paramount. At the same time, the refinery required crude supply in a tight crude market and for a basket of inputs. Crude oil prices were also extremely volatile at the time of the transaction.
Commodity Broker of the Year GFI Group
INTL FCStone Marex Spectron Newedge
OTC Global Holdings
Rank 1 5 2 3 4
GFI Group (which includes subsidiaries Amerex LLC and Starsupply) have been leaders in the brokerage of energy and commodity products for over 30 years. The group’s brokerage desks cover the full range of energy and related products globally, including physical and financial electricity, natural gas, coal, crude oil, fuel oil refined products, carbon emissions, and renewable energy credits. Recently, new products have been added such as iron ore.
A key differentiating factor is the group’s hybrid brokerage strategy and the development of state-of-the-art execution platforms EnergyMatch® and EnergyMatch® Europe and GFI has delivered major improvements to the EnergyMatch platform.
Revenues from commodity products continued to increase throughout 2011 and into 2012. During the year GFI became the first broker to clear an electronically traded Iron Ore Swap via STP with SGX and was the first to establish STP with SGX for Dry Freight FFAs. GFI has also improved clearing house connectivity by introducing Trayport Clearing Hub and adding SGX to list of clearing houses providing STP to EnergyMatch Europe.
GFI was also an early mover in going live with EFET’s eXRP – an industry wide initiative designed to standardise exchange processes across European clearing houses and enhance connectivity.
Commodity Exchange of the Year CME Group
European Energy Exchange London Metal Exchange Nord Pool Spot / N2EX
Singapore Mercantile Exchange
Luke Jemmett, Head of Energy Market Development, GFI Group
Rank 2 3 1 4
5
When the London Metal Exchange announced a possible sale in September last year, nobody doubted that there would be intense interest from many of the world’s major exchanges particularly. However, there was also much scepticism that the diverse shareholder base of this trophy asset, with its 135 years of fiercely independent history, would ever reach agreement on a sale.
The LME Board ran a flawless multi-stage auction process, with no delays or derailments, narrowing
December 2012 27
Ronny Elenius, Managing Director in the Commodities Division, Morgan Stanley
“This Coryton, supply, offtake and inventory management deal is one of the most challenging and complex deals I have come across in this marketplace,” says Guy Isherwood, head of the Awards Judging Panel. “An outstanding winner in this year’s awards process.”
In North America, Amerex brokers continues to excel in all the voluntary and compliance U.S. Federal and regional emissions markets including NOx, SO2, HGB, NOx, ERCs, and DERCs. Amerex offers both long and short term forwards as well as options in each of these products and is an industry leader in structured emissions transactions. Specific to the emissions markets Amerex intermediates approximately 30-40% of all transactions of SO2, Annual and Seasonal NOx and RGGI allowances. Amerex is also one of the more well-recognized brokers of regional emissions markets such as the South Coast AQMD PA-NYS ERC market and renewable energy credits. Adapting to ever-changing environmental legislation, the emissions team at Amerex offers customers access to unsurpassed technical regulatory and market knowledge.
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