ICL, already a user of SDâs FX system for several years, will upgrade its package to include SDâs corporate, commodities, energy and interest rates solutions, including a multi-asset portfolio management system, to enable accurate, independent pricing, risk and position management, revaluation and compliance across all their cash and derivatives.
Utilising SDâs multi- and cross-asset capabilities, ICL will be able to obtain risk reports and analysis across all these asset classes.
ICL is one of the worldâs largest producers of potash, compound potash and phosphate fertilizers, food grade phosphoric acid, elemental bromine, magnesium and a major player in specialty chemical high margin niche markets.
ICLâs corporate treasury team required a powerful solution to manage the risk of its diverse derivatives portfolio, and chose SD for its independent pricing for advanced options and mark-to-market end-of-day revaluation. In addition, SDâs multi-asset tools will enable the company to manage derivatives workflow through the entire lifecycle of the deals, while the reports generator supports regulatory requirements.
SD is the marketâs benchmark system for derivatives. It is used by many of the worldâs largest corporations, as well most of the banks in the world that trade derivatives and numerous hedge funds, brokers, auditors and central banks. The unique service provides wide, multi-asset coverage, enhancing the productivity of the organisationâs entire derivatives business and inspiring user confidence by generating transparency.
SDâs wide coverage spans all derivatives, from vanillas to the most advanced structures, across the full spectrum of underlying assets. Supported by a proven pricing model, SD enables the highest levels of transparency, and provides a rich set of reports for the corporate sector, ensuring ICL complies with required accounting, auditing and regulatory requirements. In particular, SD generates a hedging efficiency report that will assist the organisation to focus its derivatives activity on hedging rather than speculating.
Michael Hazan, Treasurer, ICL, comments: âAs a global fertilizers and speciality chemical company, we need a comprehensive view of the factors that affect our capacity to do business across the world.
âWith SD we are able to view, analyse and manage the risk across our diverse derivatives portfolio, including FX, interest rates and commodities in all our branches and subsidiaries. We now have a truly complete solution for maximising the business opportunities of our corporate treasury department.â
Dr. Yuval Levy, CTO, SD, comments: "Our rich combination of independent pricing, wide asset coverage, proven technology and unrivalled risk management tools empower companies such ICL to manage market risk and hedge their exposures. The unique multi-asset capabilities mean that they can get a view of their entire portfolio at the click of a button.
âIn addition, our unique, intelligent open architecture is web-based, allowing ICL to dramatically reduce the total costs of its derivatives activity and increase the speed of implementation.â