Given our role in the markets and the instruments we trade (futures, swaps and forward contracts), we do not engage with the management of listed companies as a shareholder. Instead, as an experienced derivatives trader, we engage with policymakers and relevant parties active in the financial industry, with a focus on issues around market functioning. We maintain an active and open dialogue with exchanges, brokers, industry associations, investors and other end-users of derivatives, and regulators. We regularly publish articles, and participate in roundtables and other industry discussions, to share our view on responsible investing and to raise awareness about the requirements for the well-functioning of derivatives markets.

We’ve been actively engaging with exchanges on the topic of market functioning for many years, such as on settlement price methodologies, trade cancellations and trading hours. We do this especially when we encounter situations where we believe that prices are not the outcome of a well-functioning process. We also actively participate in industry discussions on the role of derivatives in the net-zero investment framework, among others via an SBAI working group.

Some organizations use voting rights as one of the instruments to engage. However, our Diversified Trend Program invests via derivative instruments, which do not bear voting rights. Therefore, voting on ESG-related matters or other issues is not within our scope. Moreover, we believe that the long-term well-being of companies is best served when shareholders and stakeholders with a longer-term commitment to these companies set the tone. Not investors with a shorter-term investment horizon such as ourselves. The only exception is the voting rights that Transtrend has in relation to investments in money market funds and its industry memberships.