Standard Chartered Bank Bangladesh has closed the first dollar-taka seagull deal in the country with PHP Group.
This was the first transaction of its kind and the largest dollar-taka option deal executed so far in Bangladesh, StanChart said in a statement yesterday.
A seagull option is a three-legged strategy, often used in forex trading, which can provide a hedge against the undesired movement of an underlying asset. A seagull option is structured through the purchase of a call spread and the sale of a put option (or vice versa).
PHP Steels was looking for an innovative solution, which is a cost-effective hedge but provides more flexibility than a forward, if the rates remain unchanged, the statement added.
“Both PHP Group and Standard Chartered are the innovators in their respective fields; this helps build the depth of this relationship. Together we have come up with the seagull deal — yet another first in Bangladesh,” said Sufi Mohamed Mizanur Rahman Chowdhury, chairman of PHP Group.
Mahfuzur Rahman, head of commodity corporate affairs of StanChart, said: “Our technical know-how and great relationship with PHP have paid off. Standard Chartered can now build on such deals to continue to provide strategic financial solutions to PHP Group in the coming days.”
