Market-neutral by construction
Every position is opened against an opposing position in a related contract. The book is hedged at entry, not adjusted into a hedge afterwards.
Market-neutral commodity arbitrage
Capture the spread. Not the direction.
A hedged approach to exchange-traded commodity derivatives, managed by a Singapore fund manager licensed by the Monetary Authority of Singapore since 2014.
- Hedged at the point of entry
- Exchange-listed & cleared only
- No view on commodity prices
Matched position · illustrative
Two related contracts on the same underlying
Leg A · standard contract
Leg B · mini contract
DirectionNeutral
LegsMatched
ClearingExchange
MAS licensedCMS licensee since 2014
Hedged at entryNever adjusted into a hedge
Verify this directly with the regulator
eservices.mas.gov.sg/fid
Search for “Nuvest” in the Monetary Authority of Singapore Financial Institutions Directory, or go directly to:
Official public register
Capital Markets Services licensee since 26 February 2014
View on MAS
In brief
What this strategy is.
Four principles that define how the book is built, supervised and evidenced.
Two complementary strategies
One operates within a single exchange, main contract against mini. The other operates across CME Group venues and Indian commodity exposure.
An institutional home
Strategies are being consolidated into Nuvest Capital Pte. Ltd., a Singapore fund manager licensed by the MAS since February 2014.
Evidence, not assertion
Every figure is reconciled to exchange trade confirmations and settlement records, and is available for line-by-line inspection.
The engine
Two strategies, one discipline.
The same physical commodity is priced in more than one contract and more than one market. We hold one against the other and wait for them to converge.
Within a single exchange
A position in a main commodity contract is held against an opposing position in that commodity's mini contract, on the same exchange.
- Same commodity
- Same strike
- Same expiry
- Same settlement day
Across two exchanges
Exposure on CME Group venues (COMEX / NYMEX) is held against opposing Indian commodity exposure, with USD/INR as the base currency of the hedge.
- Gold, silver, crude, gas
- Matched contract pairs
- Currency-adjusted ratio
- Closed inside the cycle
Illustration
The same trade, in plain terms.
A simplified illustration of the matching principle. Figures are indicative mechanics only — not a return projection and not a record of a completed trade.
Leg A · Standard contract
Crude option
Crude option
Strike 8200
Priced at 48
Observed difference
3
per unit, between two contracts on the same barrel
Leg B · Mini contract
Crude Mini option
Crude Mini option
Strike 8200
Priced at 51
At settlement both contracts reference the same price. Whatever crude does between entry and expiry, it does to both legs. The directional movement cancels; the difference is what the position was opened to capture.
Portfolio
Where the book is deployed.
Energy carries the deepest liquidity and the most reliable standard-versus-mini structure — where matched execution is most dependable.
40%Crude oil
40%Natural gas
10%Gold
10%Silver
Target allocation. Actual exposure varies with contract availability, liquidity and margin conditions.
The opportunity
Why the price difference exists.
Related prices are not identical — and the reasons are structural. They recur every contract cycle.
Two venues, one barrel
Indian and US venues quote the same underlying in different currencies, time zones and local conditions.
Contract size asymmetry
Standard and mini contracts represent the same commodity in different lot sizes, offset at a fixed ratio.
Different settlement cycles
Expiry and settlement mechanics differ, creating a window in which prices diverge before converging.
Local liquidity and margin
Depth, margin rules and participant mix differ by venue — and that difference shows up in the quoted price.
Check the evidence, line by line.
Trade-confirmed reconciliations, strike-level matched positions, exchange statements and audited accounts — shared under a mutual confidentiality agreement.