“The past 5 years have seen a great sea change in oil markets with firms having to remain agile to navigate constantly changing oil derivative markets safely. This has been no different for the Onyx Capital Group which has grown from its inception in 2016 to where we now stand as the largest liquidity provider in the market by cleared volumes, trading more than 10 billion barrels of oil equivalent in the past 12 months and being recognised by the Energy Risk Asia Awards 2021 as the Advisory Firm and Market Maker of the year. It’s great to be acknowledged in this respect but it is a testament to all teams across Onyx that have come together to provide meaningful solutions to our clients during one of the most turbulent periods of recent memory as many industries fell to their knees due to the pandemic.” Greg Newman, CEO, Onyx Capital Group.
With the impact of Covid-19 ripping throughout the oil sector, any corporate entity with exposure to oil prices had to completely reassess their operations almost overnight, making 2020/21 one of the most difficult trading environments on record. Unhedged E&P firms suddenly had millions of dollars wiped off their balance sheet, whilst consumers such as airlines who would normally thrive in a low-price environment suddenly had an offside hedge book with no physical demand to offset against. The subsequent rounds of furlough and redundancies made enlisting the help of outside premium advisors very difficult for everyone in the oil sector, however, this furthered the demand for a service that maximised value with fee structures suited to the situation. This is what we have created at Onyx.
Onyx Capital Advisory offers its clients a full 360-degree solution that allows them to access the best in hedging solutions, access to markets, research, and trade execution all in one place. We created our product suite to build on the same foundations of Onyx Commodities of Transparency, Integrity, and the will to advance the oil derivatives space. We aim to arm our clients with the tools and necessary insight to move from being price takers which were previously being taken advantage of by traditional hedge sellers, to hedgers with cost-efficient risk functions who remain agile to volatile market changes.
Newman goes on to say: “Our resilience in a tough market has shone through in the last year as we have managed to grow and expand during a particularly testing period in oil markets. With other companies struggling to remain profitable and retain their staff, Onyx has protected their revenues and increased headcount as a group by 84%. One of the things we are most proud of is that we have created and expanded Onyx completely organically and stayed true to our values of transparency and integrity which has provided real wins for our clients.”
In the basic definition of market maker, we dominate the space with our market share through the liquidity which we provide, however, we are more than this. A market maker should look to constantly innovate to develop the market and improve transparency and efficiency in whichever way they can. We have done this through innovating trading systems with Flux, offering a unique take on market research, creating a niche brokerage service that goes above and beyond and working side by side with our clients on our Hedging Advisory to offer bespoke solutions to unique problems.
The market has come a long way in the past 5 years, and it is certain to continue evolving across the next 5 years. It is our great pleasure to win these awards and we would love to speak to you about your current trading activities and how we can tailor a bespoke, award-winning solution for you.
This publication has been prepared by Onyx Capital Advisory Limited which is regulated by the Financial Conduct Authority. It is provided to our clients for information purposes only and any persons acting on information contained in this publication do so solely at their own risk. The information contained in this publication has been obtained from sources that we believe to be reliable but we do not represent or warrant that it is accurate or complete. The opinions in this publication are those of Onyx Capital Advisory Limited and may be subject to change. The information contained herein is provided as of the date indicated, may not be complete and, is subject to change, and no obligation is undertaken by Onyx Capital Advisory Limited to revise or update it. This publication is directed at eligible counterparties and professional customers as defined by the Financial Conduct Authority. Any kind of reproduction of this publication without written permission by the publisher is strictly prohibited. Onyx Capital Advisory Limited reserves the right to modify content or cancel publications without prior consent or notice. Other firms within the group may hold existing positions (long or short) in the investments described in the publication.