Commodity swap

Positive

Negative

Type of clients

retail and professional clients with exposure to specific exchange traded commodities

Clients’ knowledge and experience

- the movement and the possible expectations regarding the hedged exchange traded commodities values;

- lost profits or realized losses related to a negative change in exchange traded commodities values for the client;

- hedging the cash flows by buying Commodity Swap, related to payments of the client on exchange traded commodities;

- maintenance of collateral required when concluding a Commodity Swap transaction

does not meet the indicated knowledge and experience requirements

Clients’ financial situation with a focus on the ability to bear losses

- to suffer a negative result on periodic netting payments on Commodity Swap transaction within the term of the instrument;

- the existence of an exposure at which payments are offset by cash inflows or outflows, related to exchange traded commodities

Clients’ risk tolerance and compatibility of the risk

if the objective is hedging, the client’s risk appetite will not be considered

inclined to bear the risks of deviations of exchange traded commodities prices

Clients’ objectives and needs

to hedge an exposure