Hedging in the new commodities reality
June 12, 2019Hedging in the new commodities reality
Jennifer Glista, Director and Head of Sales, Global Equity Derivatives, discusses how Scotiabank is taking a holistic approach to equity derivatives solutions, as an effective suite of strategies to help our clients meet their ongoing risk management and bespoke objectives.
Empowering corporations with a more powerful toolkit
Equity derivatives offer an effective suite of strategies for publicly traded companies to reduce exposure to market risk or structure a targeted solution to accomplish a specific objective. What’s clear is that there is a growing appetite among public companies to use equity derivative structures to facilitate their ongoing capital management needs as well as more bespoke objectives. The Scotiabank equity derivatives team is well-equipped and committed to educate firms on how to tactically apply these strategies in the Canadian and U.S. markets.
“At Scotiabank, we see the role of education as being vital to this conversation. It’s important to understand how equity derivatives can be used in conjunction with, or as an alternative to, more commonly used structures,” said Jennifer Glista, Director and Head of Sales, Global Equity Derivatives at Scotiabank. Businesses are increasingly recognizing the benefits of these solutions and are looking to market leaders like Scotiabank to help them better understand equity derivative structures and how they can be utilized to meet their ongoing risk-management and more targeted needs.
Scotiabank’s equity derivatives solutions
Scotiabank partners with internal groups and product platforms across its organization to address a wide range of different client objectives. As part of this approach, the team provides robust educational campaigns and ongoing insights to CFOs, Treasury departments and other key stakeholders. The equity derivative toolkit addresses many different client objectives including: the accumulation, monetization or disposition of third-party shares; share-based compensation hedging; share buybacks; financing structures tied to an eventual equity issuance; at-the-market issuance hedging; and several other equity-based solutions.
In the 2018 Annual Report, Scotiabank outlined the team’s role as the sole equity derivative provider for an enhanced share disposition strategy as a deal highlight. The strategy – which was different from what has been previously executed in the Canadian market – helped to maximize the share sale proceeds for the selling company.
“We are proud of this transaction as it is a good example of how we facilitate great client service through the coordination of Scotiabank’s coverage teams and the evolution of the product offering available to Canadian issuers,” said Kieran O’Donnell, Managing Director and Head, Global Equity Derivatives.
Dedicated to collaboration and dialogue with corporations
“Our team brings diverse backgrounds and thought leadership, which helps to facilitate the unique solutions we bring to the table,” Glista said. “Ultimately, this makes us stronger partners because the solutions we craft are more integrated and aligned with a client’s business, which is a major priority for us at Scotiabank.”
By taking a more thoughtful, holistic approach to equity derivatives with clients – involving strong education, company-wide collaboration and product customization – Scotiabank is deepening client relationships and, ultimately, empowering companies with greater options to more dynamically manage risk.
For more information on Scotiabank’s equity derivative solutions, please contact:
Director and Head of Sales, Global Equity Derivatives
Managing Director and Head, Global Equity Derivatives
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