Capital Markets

Merchant West Capital Market's division operates across multiple treasury asset classes and have been assisting SMEs and Corporates since 2002. We specialise in providing our clients with a holistic risk management solution which includes the hedging of currency risk, interest rate risk and commodities. Our traders have vast financial markets and banking experience which enables our clients to focus on their core business.

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Our Solutions

    What Is It?

  • Providing customers with a unique product offering of preferential forex rates, core cash management and short term credit facilities.

  • Risk Attached

  • Incorrect forex management can lead to losses in your business and unnecessary costs.
  • Managing that risk at the best rates available to your business minimises that risk, increase returns and enhances liquidity.

  • Business Value Add

  • Understanding of your unique business needs.
  • Improved overall exchange rates, returns, liquidity and customer service.
  • Expert advice and opinion combined with streamlined trade administration.
  • A comprehensive additional/value-add product offering.

    What Is It?

  • Forward Exchange Contracts (FEC’s) allow customers to enter into an agreement with a bank to secure a specified exchange rate for a specified amount of foreign currency for a specific date in the future.

  • Risk Attached

  • The risk that the market could strengthen or weaken thereby forfeiting potential gains or losses and.
  • The risk that the initial purpose of the FEC is cancelled.

  • Business Value Add

  • Our product is different: No margin call requirement and Merchant West will consume credit risk on your behalf through the use of our FEC lines.
  • Managing risk exposure by knowing your future rate especially in uncertain times, therefore creating cash flow certainty.
  • Benefiting from a stronger market today for future transactions.
  • Securing the best possible forward rates through utilisation of our banking relationships.

    What Is It?

  • The opportunity for customers to participate alongside Merchant West Capital Markets in forex positions with a view of maximising potential gains and limiting potential losses.
  • It is a high risk, high return partnership with the aim of profit sharing.

  • Risk Attached

  • The risk that the market could move in contrarian to one’s view and open position.

  • Business Value Add

  • Risks are mitigated and quantifiable.
  • Achieving better forex rates than the prevailing spot or forward rate at the point in time through technical analysis and expert opinion.
  • The customer shares in the risk exposure with Merchant West Capital Markets (profits and losses).
  • The customer, in conjunction with Merchant West Capital Markets, can make a more informed decision on the foreign exchange market.

    What Is It?

  • Offshore allowances provide a mechanism for individuals to transfer their funds offshore by utilising either of the following in order to invest in various offshore portfolios including investments, property or bank accounts.
    • - A single Discretionary Allowance of R1 million per calendar year, or;
    • - A Foreign Investment Allowance of R10 million per calendar year which is applicable to private individual tax payers over the age of 18 years. A Tax Clearance Certificate from the South African Revenue Service (SARS) is required for this allowance which is valid for 12 months from date of issue.

    Risk Attached

  • The risk attached is the market moves in contrarian to one’s view.

  • Business Value Add

  • We have a simple and effective and automated process to facilitate your transfers.
  • You do not have to open another bank account to transact with us.
  • We can achieve fantastic rates on your behalf.
  • We can assist with the necessary administration and monitor your transfer.

    A) MONEY MARKET INVESTMENTS

    What Is It?

  • An opportunity to invest surplus funds in a competitive and effective money management system through the use of a comprehensive online system.
  • Fixed and Floating Options available.

  • Risk Attached

  • Funds are invested in Investment Grade (AAA.za) Instruments.
  • The returns are linked to money market returns and highly competitive.

  • Business Value Add

  • Making your money work for you while it is not tied up in working capital or long dated projects.
  • Beneficial interest rates available.
  • No transaction charges other than those related to cash deposits and other unconventional transactions.
  • Detailed reporting on available funds and returns earned.
  • Personalised service offered by Merchant West Capital Markets.

  • B) CASH MANAGEMENT EQUITY ACCELERATOR.

    What Is It?

  • Most banks require a deposit on asset finance transactions.
  • Merchant West offers asset finance to customers.
  • Merchant West Capital Markets allows customers to invest the required deposit at competitive rates and allow the customer to benefit from the interest earned on that deposit through Merchant West Capital Market’s CCM platform.
  • Merchant West Capital Market’s afford the availability / access of the deposit mid-term over the duration of the asset finance transaction.

  • Risk Attached

  • Merchant West consumes 100% of the credit risk on the customer under the asset finance transaction.
  • Set-Off is to be applied in the event of default under the asset finance transaction.

  • Business Value Add

  • Creates and enhance balance sheet substance for the customer by way of capitalising the investment in the new asset as well as the investment in the deposit.
  • Creates liquidity by way of reimbursement of the deposit invested at mid-term over the duration of the asset finance transaction.
  • Ensure that the depreciation profile of the financed asset closely matches actual realised liquidity.
  • Overall enhanced cash- and debt management by off-setting interest earned to interest expensed on the debt resulting in overall lower cost of funds and pricing of debt facilities.

  • We are great at what we do and provide excellent customer service, efficiency and all round customer satisfaction.
  • We ensure that you are maximising your forex potential and securing the best possible rates for your business.
  • Gain market insight and opinion.
  • Allow customer to time their forex payments as best as possible.
  • We offer tailor made, single or multi-dimensional solutions.
  • Streamlined FICA & FATCA documentation and trade administration.

Managing Director: Capital Markets

Quentin Grape

Tel: +27 11 305 9400

capitalmarkets@merchantwest.co.za

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Why Use Us

We are great at what we do and provide excellent customer service, efficiency and all round customer satisfaction.

  • We ensure that you are maximising your forex potential and securing the best possible rates for your business.
  • Gain market insight and opinion.
  • Allow customer to time their forex payments as best as possible.
  • We offer tailor made, single or multi-dimensional solutions.
  • Streamlined FICA & FATCA documentation and trade administration.
  • Credit facilities offered to our clients in the Foreign Exchange space.