"Your Financial Relationship Partner" 



Trade Matching is a simple business model which can be applied to any product/commodity by organizing the original purchase of the commodity by a "re-seller" and the forward sale to an end purchaser done in tandem with each other.

When the purchase of any commodity is made there are factors that apply as to the ownership and Proof of Product, which means the following in the case of most PHYSICAL commodities oil, grain, metals, diamonds, and many other PHYSICAL property commodities.  In most cases the following applies as Proof of Product:

  • a) Certificate of Ownership from commodity Producer to confirm the Allocation and the Ownership
  • b) Registration from Governmental Authority to confirm the Allocation of Ownership and for them to issue the Permit for Export
  • c) Producer's or Seller's Authority to Sell
  • d) Confirmation from a transport company, to confirm the delivery schedule and that the transport of the Product to the loading port is secured.
  • e) Lifting Schedule, confirmed by loading port / terminal
  • f)  Export Declaration of customs

In order to attain "OWNERSHIP" the reseller often uses a partnership arrangement to "show" funds of his partner with cash funds.  Sometimes these "show of funds" are provided through only an institutional bank relationship and sometimes other sources such as pension funds, unions or private funds; of course all these funds are held within the banking system so the institutional banks are always involved in all transactions. In any case the reseller agent achieves the commodity "ownership" under a JV arrangement with a cash fund holder.

Please note: The bank plays an important role facilitating all money confirmation and transfer arrangements either for themselves as an involved "partner" or as a facilitation service for the other participants who hold their participating funds in banks.

The ownership achieved, the reseller agent can now move forward to Proof of Product to arrange the sale of the commodity to a purchaser. (NOTE: There may be more than one reseller involved in some transactions before it reaches the end user - each usually contributes a service or sometimes an upgrade to the product/commodity until completion of the sale).  The purchaser provides a bank letter of credit or other financial instrument from their bank so when the product is delivered payment is secured and released to the seller (or reseller agent) when all conditions of sale are met.  The profit difference between purchase to the final sale is then shared between the parties according to their JV participation agreement with each participant having provided a service, whether that service was providing the "financing" or otherwise.

The degree of profit is determined by:

  • a.) the difference between the purchase price and the sell price - commonly called the spread, and,
  • b.) the time element that exists from point of purchase to the final delivery to the end buyer of the commodity 
  • c.) the commodity bought and sold under a succesful matched trade from producer to end buyer
  • d.) the amount of funds placed forward to accomplish the buy/sell in the trade match dealing was accepted by the producer and their bank 

Each JV participant has a vested interest to see a transaction close as quickly as possible.  If your JV participation was providing the funds to show in the transaction then the number of times your funds can be shown over and over again in a multiple of transactions determines the returns for each JV participant.

Let us review a few examples of buy/sell involving different commodities and evaluate the differring time frames from the beginning of the transaction to closing. Then follow through the anticipated profitable gain on the part of each of the JV participants. It should be noted that introduction to the persons or corporate that represent your possible PRIVATE involvement in these types of opportunities as a participant, is crucial - you must be introduced to these opportunities by those in the know in order to participate and profit from them under a JV participation arrangement - Trust Management Services Inc. is knowledgeable and capable to make these introductions and receive a pre-arranged portion of the JV participation arrangement profits for their participation in these ventures. 

Example #1 - Oil and Petroleum products

The sequence of events that take place from exploration to production then on to distribution and refining, to finished products is a long term investment, but as most commodities there is a consumable element that has many opportunities to profit at each stage of product deliveries.

Let's start with the crude oil and realize that similar circumstances are applicable in all petroleum related productivity. Once crude oil is available, the reseller makes the purchase and forward sells to the refinery. The time element for JV participants, especially the Funds holder participant, is crucial. Funds holder participant must be prepared to see the funds tied up probably for weeks and possibly months until delivery to the refinery is made. Scheduling, shipping risks, insurance issues and many other factors come into play and may increase the risk, However, the Letter of Credit remains the safety of the buy/sell that funds will not be lost, but realization to profit may vary under different elements and circumstances including the time element. Always in a business dealing a buyer, seller and possibly a private funds participant, investment banker, or sometimes just the business' banker seek a fast turn around time for the use of their funds to maximize their profit.

BE AWARE: These opportunities for private funds participation on commodities may be set for a one spot buy/sell or have the funds standing for a longer term contract - as the long term contract stands the risk factors of consideration are minimized. However, a refinery has a preset for deliveries of their intake crude and exit refined product because they can not start and stop, they must have a steadily purchasing client making a JV participation opportunity difficult to secure for a longer period of time because they already have sales secured. The same issues apply either on crude oil supply or on refined product sales for the private participant, similar issues of risk and delays to see the return in the JV exist, but when found and sought outto be real can be lucrative.

Example #2 - Diamonds

Here the same investment opportunities take place, however the delivery of product/commodity is much simpler as the diamonds can be carried in one's person under security measure yet the time for a transaction to close is much less - hence more turnover for more profit.

The reseller takes ownership as previously explained, the diamonds are brought to a "table top" meeting through the person or much simpler security measures, the assessment of value is performed on the product, the money exchanged for product is delivered on the spot, and the transaction closes. The time element is much less, number of transactions using the same participant funds more frequently occurs, so number of times to payout profit is much more frequent resulting in a better return to the JV partiipants overall. Improved cash flows make it very lucrative, but it should be understood that the diamond mines to not open to produce without knowing they have buyers in place to purchase.  This being the case, to seek out a placement for JV participants with funds n the industry has its challenges as well.

Example #3 - Electronically Traded Commodities 

When applied to an electronic securities product, also a commodity, such as Medium Term Notes (MTNs) or mortgages, instead of a physical commodity, additional benefits result, including certainty of profit commitments from all banks involved in the transaction, speed of transactions to close, and protection of capital via a secured and specified custodial security account that maintains participant funds at a initial level of deposit within the account.

Below is a summary of how finacial paper buy/sell matched trading works and how a licensed trade group partner, to whom the funds participant is introduced for the business JV participation relationship, creates profits from client participation funds.  The basic premise is to create a margin of profit, at an average 5% to 20% per transaction, in the buying and selling of a product.  The advantage of finacial paper trading over physical commodity trading is:

  • a.) It is easier to match both buy and sell trade in tandem with full commitments by all banks involved (issuing, trade, exit) in the transaction PRIOR to executing the transaction.
  • b.) The above commitments from all banks ensures that there is no trade risk in being unable to sell a product that is purchased.
  • c.) The electronic nature of the transactions, allows the transaction to be conducted via a custodial transactional account.  With capital under a non-depletion status in the account, the risk to capital is removed, as this is guaranteed by the bank holding the funds itself.
  • d.)There is no delay in physical shipment, as it is not a physical product.  This allows a greater number of transactions to complete within shorter time periods, and possibly more that one per day when organized appropriately.  It is this speed of transaction which magnifies the margins to amounts which cannot be possible with physical product transactions.

The licensed trade group to whom we make introduction with is a holder of  "paper" under contract with numerous issuing banks and has long standing relationships with the issuing banks having been involved in this field for three decades.  In addition, exit relationships for the purchasing are already established making it easy to organize sale and buy agreements to be executed simultaneously.  As such, they are in a position to utilize their relationships, financial paper commitments and exits with both their monies and additional monies from participating JV clients.  Where clients place their funds foward a new Business Venture is created with new matched trading agreements dividing the profits with the new client as a JV participant.

The client is recognized as a business partner associate and the dealings are  transparent at each stage of the buy/sell trade process, including disclosure the profit margins being made via the buy/sell contracts. This is all to establish and develop a long term relationships between the licensed trade group and the participating business partners within the JV.



A brief summary of the application procedure for new participants that wish to become a JV partner, this does NOT guarantee that the other party is interested in a JV, like any business association - each side must want to work with the other.  To have the other partner determine if they wish for a working business partnership or relationship these are the summary of the beginnings of procedures of application:

  • a.) There must be a Request - client must ALWAYS be the account holder and signatory and appropriate documentation is requested
  • b.) Confirmation of Funds - they are confirmed, compliance completed and accepted as genuine, then contact is initiated to move forward.

Once acceptance of the request is granted by any industry group of choice, then Private JV trade agreements are issued to the signatory and account holder ONLY. Please do not ask for private contract or trade group details to be released to any third party or client representatives/intermediaries, as this is against the trade group's in house attorney's strict instructions - this is a PRIVATE introduction of a business JV arrangement.
There are some items necessary to establish the JV Participation beginning with the usual bank "Know Your Client" information requirements to create a usable protected capital scenario for transactions through a custodial account with provision for non-depletion of capital funds deposited at the designated trade group recommended bank; Preparation of Sale and Buy contracts; Issuing bank compliance confirms funds are held in JV trade bank; Execution of daily transactions by providing trade bank back office with buy/sell Euroclear tickets to organize banking commitments for each transaction. Then the pay out profits as agreed weekly, bi-weekly or monthly or as underlined in the JV business agreement - this is common to designate profits to project funding if those criteria are approved.

PROCEDURE DETAIL - on the application documentation purchased from our shopping cart

a.) Trade Request 

Client requests to be taken to a matched buy/sell trading opportunity by providing initial documentation including:

  •  a.) Letter of Request from the Client w/ copy of Passport
  •  b.) A tear sheet of the account statement indicating cash funds available
  •  c.) Letter of authorization to verify the funds - bank to bank
  •  d.) List of project(s) to be funded with maximum anticipated cost estimate
  •  e.) Client Information statement providing compliance disclosure to "Know Your Client" to address the appropriate banking and finance regulations
  •   f.) Full color copy of signatory/account holder passport
  •  g.) Letter of Attestation

If the account holder client is a Corporation then the trade group will additionally require the following:

  •   a.) Corporate Resolution naming the authorized signatory
  •   b.) Certificate of Incorporation
  •   c.) Passport copies of primary Directors and Shareholders of the Corporation 

NOTE: The draft form of these documents aforementioned are available from our "Shopping Cart " identified as Trade Matching request Application documents.


b.) Funds Confirmation

Before accepting or honoring a new client request as genuine, the trade group must check that both the funds/asset are recognized by the client custodial banker holding the funds/asset.  There is no exception to this requirement, regardless of the title or position of the new client. The trade group's reputation with their issuing banks and exits are more important than any single transaction or new client; and they will not jeopardize these relationships.

The initial procedure for checking the funds/asset is very simple and does not require any SWIFT or other such mechanism.

The simple requirements are:

  • 1.) One email from the custodial banker confirming funds are within the bank and fully owned by the client
  • 2.) The source of the email is checked through the trade group technical staff
  • 3.) One phone call to custodial banker confirming they sent the email (no other questions)
  • 4.) With certain banks, or branches of reputable banks, where a concern exists that may  raise red flags; then on some occasions the trade group sends one of their licensed private bankers to the client bank itself to confirm the funds in person with the custodial banker - this is rarely required.

The client participating funds for financial commodity transactions under a JV commodity participation relationship should be set as One Million Euros minimum or equivalent in United States Dollars. This minimum may be lowered at the discretion of the particular trade group under specific acceptable circumstances, in some cases the trade group will accept less however, this is determined depending the circumstances. PLEASE ASK, there are other options available, one example of which is discussed below.

Where the client is bringing forward an asset, the credit line value of the asset would be a percentage of the face value (if the asset is a bank instrument) and the credit line amount can only be determined after discussions with the trade group's trade banks that would provide the credit line depending on how they value the asset offered as collateral security.  The trade group ONLY discusses the amounts after fully confirming that the asset is genuine and owned by the client.

Other assets of varied commodities such as diamonds, gold, oil reserves, and/or varied  commodity supply contracts may also be structured that they could be held as security for a loan or credit line value - either through a client's own bank relationships or with assistance from the trade group and their banking relationships.

Where the potential JV  business partner client does not have the 100M Euro, the trade group may be able to initiate and arrange buy/sell matched commodity trading transactions for clients with a much lower minimum. The account would be placed through the assistance of the trade group bank with the client; this account would work under a client custodial account structure with funds deposited under non-depletion clause, thus providing comfort to the client that their capital is guaranteed. The trade group through their trade relastionships are suited for the buy/sell matched trade activities.

The structure is very similar to the trade group buy/sell matched electronic trading, with the difference being in quantity of transactions that can be conducted per time scale, as additional real world delays of shipping and verifying needs to be taken into account. Other than the physical delays, the investment capital is again confirmed as protected by the bank itself to the participating client and returns are commonly substantial under this JV arrangement.


c.)Trade Agreement 

Once the client request is confirmed as a genuine request, the file is identified as LIVE and the trade group will provide every resource to make the JV business trade relationship a successful one.


The option that the trade group will utilize to create usable protected capital for trade must be agreed with the client in principle, this the reason for the JV business reltionship - each party has a contribution to make for the success of the business at hand.


At this point, if another associate trade group besides Trust Management Services Inc. themselves is identified, the trade group provides their private trading JV business contract to the participating account holder directly, with their full corporate details.  Prior to this Trust Management Services Inc. will require a JV participation agreement arrangement in place, this is usually completed when the first request documents are first received. The trade group does not honor requests for copies of their private JV contract(s) to be released to any third party, including representatives or intermediaries to the account holder – this is against strict policy enforced by the in house attorney for the trade group preparing and issuing the agreements.


The trading group JV contract is a very simple document stating that the trade group will utilize the participant's funds in their buy/sell matched trading activities for a set agreed term, dividing their profits equally or as negotiated.


The in house attorney for the trade group is able to negotiate and organize any required amendments to the trade JV contract, but they like to keep the contract as straight forward and simple as possible so focus is given on the business JV trading activity itself.


Please note that the trading entity group(s) have different incorporated entities in Europe, Hong Kong or the USA.


d.) Create Usable Protected Capital for Trade

The structure of this stage varies from client to client, as each client has their own unique funding position and level of matched trading experience, together with their new JV relationship with the trade group.

Matched trading itself can only be executed with cash funds.  Where an asset is proposed by the client, then additional steps need to be taken to monetize the asset into usable cash funds.

Requests to utilize "administrative hold" against cash only, reveals a lack of understanding of the funding process.  A trade bank will not release a credit line to the trade group secured against an "administrative hold" of the funds, as this is not a viable security.  Any client making such a request is in fact trying to protect their capital without moving their funds out from their bank and/or without creating a lien on their funds by way of blocked funds MT760.  The trade group's first investment option described below achieves all of these goals for all the investment clients in a way that is both efficient and secure.

Where the client comes with cash funds from the beginning, an account structure still is needed to be agreed upon to ensure that the cash funds are both:

  • 1.) usable by the trade group
  • 2.) protected for the JV participation partner   

Funds in an participating client's own account will fail compliance by the issuing bank when signing off on the financial paper buy contract, as the participation client is not the holder of product under contract, as is the trade group.  The cash funds therefore have to be invested into a structure which allows both;

  • 1.) the funds usable for the trade group and
  • 2.) the funds protected for the participation partner.

Several potential strategies and funds/assets scenarios can exist to allow creating usable capital for trading.  Please note that under all of the following identified scenarios, the client remains as owner of the funds. 


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