Using Derivatives to Create Liquid, Accessible Markets
Improved Access
Democratized access to alternatives and real assets
Brining Liquidity to the illiquid
Enhanced liquidity and increased trading volume, improves price discovery, minimizes price volatility and mitigates the risk associated with being unable to exit.
Capital Raising
The issue of OTC derivatives allows for fundraising opportunities for your and your business.
Real-World Assets
OTC derivates based on bespoke assets such as real estate, art, collectibles, agriculture and intangible asset
Financial Assets
Creation of OTC derivatives that track traditional financial assets such as shares, bonds, commodities, FX and funds.
Secondary Market
Overcoming the historical lack of lack secondary market trading and liquidity, allowing investors buy and sell assets that they already own.
Underlying Assets
The TRS contracts are built upon loans provided to actively operating businesses involved in South African agriculture and similar identified underlying projects.
This approach provides greater security compared to alternative derivative instruments like CFDs (Contracts for Difference), where the balance sheet hinges on “losses” from other clients, where the client’s derivative lacks asset linkage.
Financial Inclusivity
This distinctive approach not only elevates investment safety but also promotes financial inclusivity.
By enabling participation from both retail clients and small enterprises in the agricultural sector, historically burdened by substantial entry obstacles, the product cultivates a more inclusive and equitable investment environment.
UNUM Prime provides its clients with an over-the-counter derivative product named Total Return Swap.
- A TRS entails a contract between two parties where they mutually exchange returns from a financial asset.
- The TRS contracts refer to a credit loan exempt from the National Credit Act 34 of 2005 (“NCA”). These loans are extended to Ring-Fenced Investment Companies.
- Profits, assets, and liabilities of Ring-Fenced Investment companies are distinct from UNUM Prime. These companies operate with a specific mode and goal.
- Ring-Fenced Investment companies receive loans from UNUM Prime, facilitating investment operations that generate returns for UNUM Prime’s Derivative Contracts.
- These entities undergo a rigorous due diligence process, ensuring their investment suitability and viability.
A wide range of alternative assets Begin your derivatives trading journey by investing in one of our alternative assets .
In terms of Section 4.1 in the National Credit Act 34 of 2005, the following exemptions are applicable to UNUM Prime
Should you have any queries, please do not hesitate to contact us.
Legal
Services
Quick Links
Get In Touch
- Unit 1, 57 via Latina Crescent, Irene Corporate Corner, Pretoria, 0133
- +27 (0)11 384 2900
- info@unumprime.co.za
© All Rights Reserved.