Energy Risk Management
MAS Markets provides robust solutions to navigate volatility across global energy markets. We combine cutting-edge technology, real-time analytics, and expert support for efficient hedging and pricing strategies.
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FCA Regulated
Tier 1 Liquidity
Proprietary Technology
Case Study
Oil & Gas Company: Managing Energy Risk with MAS Markets
Excessive Price Volatility
Rapid changes in oil and gas prices (driven by geopolitical events, supply/demand imbalances, and macroeconomic factors) posed a significant threat to the company’s earnings stability.
Limited Liquidity & Pricing Transparency
Existing hedging channels did not provide enough depth in the market or competitive pricing, leading to wide spreads, potential slippage, and uncertainty during periods of high volatility.
Regulatory & Compliance Complexity
Operating across multiple jurisdictions, the Oil & Gas firm required a partner offering transparent execution, robust reporting, and alignment with industry regulations.
Scalability & Customization
Hedging requirements could fluctuate significantly based on production levels and operational timelines. The firm needed a flexible, scalable solution without the administrative burden of multiple counterparties.
MAS Markets Multi-Asset Liquidity
By partnering with MAS Markets, the Oil & Gas company gained access to institutional-grade liquidity for a variety of energy markets. Key solution components included:
Deep Market Depth & Competitive Spreads
MAS Markets aggregates liquidity from top-tier banks, non-bank market makers, and hedge funds, ensuring consistent and transparent pricing for energy commodities.
Tight spreads and high volumes enable efficient hedging strategies, reducing overall transaction costs.
Advanced Trading Infrastructure
Ultra-low latency execution technology supports quick entry and exit in fast-moving energy markets.
Full integration with leading trading platforms and FIX API. Automated strategies allowed.
Bespoke Risk Management & Reporting
Customizable solutions tailored to the firm’s production hedging needs and compliance requirements.
Real-time monitoring, margin checks, and position management ensure robust oversight of open hedges.
Dedicated Relationship Management
MAS Markets provides ongoing guidance and support—from initial onboarding to continuous optimization of hedging strategies.
Onboarding & Configuration
The Oil & Gas company completed the compliance and account setup process with MAS Markets, establishing clear parameters for margin usage and allowed trading instruments.
Integration & Testing
MAS Markets’ technical team integrated commodity feeds into the firm’s existing risk management and accounting systems, ensuring real-time data synchronization and smooth operational workflows.
Hedging & Exposure Control
The company began opening positions in energy derivatives to offset anticipated production volume exposures.
Automated alerts and daily reports helped monitor positions and margin requirements.
Ongoing Optimization
Regular reviews with MAS Markets’ specialists enabled data-driven adjustments to hedge ratios, contract tenors, and overall trading strategies.
Stabilized Profit Margins
By effectively hedging against sharp price declines, the firm reduced revenue volatility and safeguarded operational cash flow.
Enhanced Execution & Cost Savings
Access to deeper liquidity pools and tighter spreads minimized slippage, cutting transactional costs and improving trade execution reliability.
Transparent Compliance & Oversight
Comprehensive reporting and risk management tools streamlined internal processes, meeting regulatory obligations and board-level transparency requirements.
Scalable Hedge Programs
As production and market conditions shifted, the company could easily adjust hedge volumes and instruments, maintaining alignment with business objectives.