At Upstream Limited our Collateral Management services involve the reception of physical commodities into our storage facilities and the retention of control over them until their release is authorised according to predetermined agreement terms.
To achieve physical control, we regulate the technical and security aspects of our storage facilities in accordance with our internal warehousing standards. We also establish legal control over the storage facilities by executing a lease and/or storage agreement with the facility owners. We offer additional services such as sampling,distribution, and insurance of stored goods upon request. Unless local legislation or the agreement requires the issuance of documents of title , we issue non-negotiable warehouse receipts to acknowledge receipt of the physical commodities into storage by Upstream Limited.
Using our Collateral Management services has several advantages, including access to structured trade finance,increased flexibility and options in trade finance transactions, transfer of storage and other associated risks to the collateral manager, and both physical and documentary control of the pledged goods.