Introduction

CQG offers an end-to-end solution for hedge management that includes custom contract creation and price dissemination per user or group for producers, elevators and co-opts, agribusiness firms and brokers.

The Hedge Management System (HMS) enables elevators to produce tradeable bids and offers including a basis price and publish the bids and offers for their producers to see and place trades.

This help file will use an elevator and a producer (farmer) to demonstrate the features and functionality of HMS.

CQG's OTC engine automatically places the hedge order at the exchange to the elevator’s account when a farmer’s order is placed on the custom basis contract using CQG’s Basis Trade Widget.

HMS consists of four widgets:

  • Publish Bids and Offers (Elevator creates and publishes bids and offers for viewing by their farmers.)
  • View Bids and Offers (Farmers can see available bids and offers from the Elevator.)
  • Basis Trade (Farmer can place orders to sell to or buy from the Elevator.)
  • Working Orders (Elevator can monitor both working orders placed by the Farmer through the Basis Trade widget and the HMS hedge order working at the exchange.)

Watch a video demonstration of the HMS: