DERIVATIVES

EXPERTISE ACROSS A RANGE OF PRODUCT AND CLIENT TYPES

SMBC Group offer a wide range of derivative products from plain vanilla swaps to more structured exotic hedging products to suit our clients' needs. We cover different types of clients, from corporates to financial institutions and structured finance across Europe, the Middle East and Africa.

Competitive market-making in a range of derivatives products

We are currently a market maker in interest rate swaps, currency swaps and interest rate options, such as caps, floors and swaptions, in over 30 different currencies. We also provide a range of more niche products including inflation swaps and commodity swaps. Exotic structures can be available on request.

Top provider of options hedging

We are a top provider of upfront premium caps, with competitive pricing, and can provide flexibility to clients who need to hedge using credit-risk free products, such as upfront premium caps and cash-settled upfront premium swaptions, even on deals on which SMBC Group is not a lender.

Hedge coordination

We are experienced in providing hedge coordination services, including for complex, high notional and long-dated deals.

Corporate risk strategy and solutions

We provide quantitative analysis to help clients make informed risk management decisions. Using a robust framework that combines a thorough analysis of prevailing market conditions with a client’s risk policy objectives, we identify bespoke and cost-effective solutions to meet the specific needs of clients.

AA-/Aa1 rated special purpose vehicle

SMBC Derivative Products Limited (SMBC DP) is a bankruptcy remote special purpose vehicle with counterparty risk ratings of AA- and Aa1 from S&P and Moody's respectively. SMBC DP can be used on a selective basis for booking certain types of derivative products for highly rated counterparties.