Through our commodities division, we bring results to our clients in the commodities trading and transportation business. The market is unpredictable and volatile, with prices not only affected by demand, but also by global economic and geopolitical factors, and even seasonal changes. But with our finger on the market pulse, we at Reed Smith use our legal nous to maximise opportunities as they arise, while mitigating any risks – be they regulatory, dispute or competitor-related.
Over the years, we have helped our clients prosper by providing incisive legal counsel in the set-up, restructuring, reorganisation, and divestiture of assets and business lines – irrespective of the prevailing price and regulatory environment. We understand physical commodities as well as the derivatives business. Furthermore, where disputes arise, you can count on our considerable arbitration, litigation and early dispute resolution experience.
With increased market risk, banks have tightening the belts by showing preference to larger more established clients to minimise the challenges surrounding compliance and regulatory issues. How can banks collaborate with other lenders and insurers to increase lending appetite for mid-size and SME traders? Is there growing pressure from NGOs and other pressure groups to push banks to finance certain commodities and vice versa? What would those implications mean for the commodity finance market overall?