Risk management is optimized by:

• Hedging at a profit not at a cost, changing the view of hedging from an “insurance strategy” to an “investment strategy”.
• Using highly effective, closely correlated hedges that qualify for hedge accounting treatment.
• Freeing up capital required for hedging by using a futures and options-based hedge strategy.
• Using state of the art risk analytics to graphically demonstrate projected price performance.
• Complying with all accounting (including particularly FAS 133) and regulatory rules.
• Where an “insurance strategy” is appropriate, minimizing cost by using extremely liquid and efficient exchange traded options to protect the downside risk while maintaining potential upside gains.