What is Trade Finance ?
Switzerland and greater Geneva area, the Global hub for Commodity Trade Finance
The greater Geneva area (including Canton of Vaud) has become a pivotal location for commodities since the middle ages due to its location. We estimate 400 companies to be present in this part of Switzerland. It includes commodities merchants, shipping and logistic companies, insurance, brokers and commercial banks.
How it works
Traders in Switzerland manage the delivery of a wide array ofnatural resources and semi transformed commodities across the globe without their transiting through Switzerland. They raise financing and manage the risks when coordinating shipments.
The main global hub
GRAINS TRADING
Leman Region
Europe
The Americas
Singapore
Others
COFFEE TRADING
Leman Region
New-York
Singapore
Zürich
Hamburg
Others
SUGAR TRADING
Leman Region
Paris
London
The Americas
PETROLEUM TRADING
Leman Region
Singapore
New-York & Houston
London
Others
History
Incorporation in Geneva of Tradax, a subsidiary of Cargill, the world’s leading trader of agricultural products and of Phillip Brothers in Zug
Mass exodus of a large number of Egyptian cotton traders (after nationalisation of the Suez canal by Nasser) seeking a safe haven in the region of Lake Leman where they continued conducting business.
Incorporation of large oil traders. Making Geneva one of the biggest hub for commodity trading. 1/3 of oil volume worldwide.
Paribas, first bank starting commodity trade finance based on collateral of goods. Including March Rich and other large commodity traders.
Incorporation of STSA, Geneva staffed by ex bankers and trade finance professionals to provide a voice in Bern for the Trade Finance and shipping world. Exponential increase of members over the following years.
Due to new regulations, Trade Finance banks start to increase minimum level of equity for SME’s.
Trade Finance banks are focusing on major commodity traders. Smaller ones are left and are looking for alternative financing , such as Horizon Capital.
A major sector in Geneva…
…and in Switzerland
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