Clients benefit from the group's technological innovation and in-depth knowledge of the markets while formulating and implementing their own trading and risk management strategies in this dynamic, increasingly complex global marketplace.
Bear Stearns' emphasis is on the highly liquid financial sector of the futures and options-on-futures arena — principally interest rates, stock indices and foreign exchange. Bear Stearns ranks among the top firms worldwide in processing contract volume in financial futures instruments. Additionally, trading desks in the Futures Department focus on energy, precious and industrial metals, and tropical commodities such as coffee, sugar and cocoa.
As one of the largest futures commission merchants (FCMs) in the world, Bear Stearns provides around-the- clock access to all major electronic and open outcry futures and options-on-futures exchanges via sales and trading desks in New York, Chicago, London and Tokyo.
The Futures Department offers direct-to-floor execution services to Bear Stearns' own floor facilities or sales desks, and can coordinate with a client's executing brokers to accommodate any combination of execution and clearing facilities. In addition, the firm's prime locations and strong presence on major exchange floors facilitate access to realtime market color, enabling Bear Stearns specialists to assist clients in determining favorable strategies for execution.
Clients include some of the world's largest investors:
- Commercial banks
- Commercial producers, processors and consumers of commodities and agricultural products
- Hedge funds
- High-net-worth individuals
- Institutions and corporations
- Insurance companies
- Mortgage originators
- Mutual fund groups
- Pension funds and endowments
- Sovereign countries and central banks
As futures exchanges around the world move toward electronic trading platforms, the firm has developed new ways of providing clients with access to global markets through integrated pricing and execution systems. These applications offer a variety of security options to meet clients' requirements for convenience, privacy and data integrity.
is an Internet-based futures account and risk management system that gives front, middle and back offices the ability to manage account balances, margin, trades and positions.The previous 12 months' trade and journal information, as well as monthly account statements, can be retrieved and viewed online. Comprehensive, easy-to-read statements detail all client trading activities, reflected in both the local currency of the contract traded and in the currency of choice. The system also allows data to be transferred to spreadsheets for internal analysis.
To help maintain uninterrupted business flow, department professionals connect new clients to the firm's systems and coordinate transfers of positions and assets prior to trading through Bear Stearns. A full training program is available to familiarize clients with all applications, and troubleshooting expertise is provided through a 24-hour hotline.
Bear Stearns offers centralized clearing of futures contracts traded on all of the major exchanges worldwide and efficient post-trade services, both critical when selecting an FCM. Electronic linkages transmit trades from the point of execution, to trade matching at the exchange and finally to BearTRACS, where clients can track their accounts.Bear Stearns endeavors to provide accurate, timely position information which can considerably enhance a client's ability to manage risk and exposure in the futures markets.
For nearly 30 years, Bear Stearns has been a leader in providing securities clearing services, and consistently ranks as a top tier prime broker in trade publication surveys. Centralized clearing across products such as equities, futures and fixed income can help clients optimize cash balances and create operational efficiencies in liquidity management.The Futures Department works closely with clients to provide customized information for their back-office needs and to deliver automated electronic communications wherever possible.
Because no two clients are alike, the Futures Department offers highly flexible services. For instance, to help reduce a client's currency exposure when trading on foreign exchanges that require deposits in home currencies, single or multi-currency margining is accepted. Foreign currency balances can be converted on any weekly or monthly schedule. Where permitted by the exchange, U.S. or offshore securities are accepted as collateral.
Bear Stearns knows that risk management lies at the core of clients' needs and has implemented procedures designed to help them manage all types of risks in futures trading.As an example, at the conclusion of each business day, clients can verify that all executed trades have been posted to their accounts by downloading a final trading report via BearTRACS.This system also presents intraday trade information and position reporting — two more essential tools for managing risk.