Leonetti & Matarazzo

Our Physical Commodities Trading Division

Leonetti & Matarazzo Limited engages in the trading of physical commodities, including oil & gas, agricultural products, and other soft commodities. The Firm operates either by trading or brokering. All trades are initially identified, vetted, and developed by our Development Division, and subsequently negotiated and finalised by our Trading Division.

Our Supply

The Firm supplies physical commodities that it directly sources or produces locally. L&M holds allocations, is registered, or has agreements with the world's largest national oil producers, privately-owned refineries, and agricultural producers, ensuring timely and consistent delivery of products. By sourcing directly from the producers, L&M can very competitively offer these commodities on the world trading markets.

Our Offers

L&Moffers full verification and validation of all its allocations before any financial instruments are ever required, and only operates through the best financial institutions to guarantee unquestioned protection to the trade. Where agricultural commodities are concerned, the firm directly and locally sources them, ensuring quality and consistency in its offerings, thereby providing reliable and high-standard products to its clients.

Our Brokering Model and Our Pledge

L&M brokers transactions with principals which reliability and capacity has been proven and verified. The firm first understands, then verifies and finally matches reliable principals’ products/finances to their required conditions, prices, and procedures. L&M matches offer and demand following its 4 steps brokering model:

1.
INGENUOUSLY SOURCES
2.
DIRECTLY ACCESS
3.
PERSONALLY VALIDATE
4.
MATCH SUPPLY & DEMAND

Our Model and Our Pledge

L&M dedicates time to comprehending its clients' needs, verifies these against global supply, and ultimately produces or procures commodities to the requisite quality and price, thereby ensuring perfect alignment with customers' requirements and procedures.


- DIRECTLY SOURCES: Ensuring flexibility in sourcing physical commodities, including those sourced locally and directly, to guarantee quality and consistency.


- DIRECTLY ACCESSES: Establishing direct access to principals, thereby ensuring transparency and reliability.


- DIRECTLY VALIDATES: Conducting personal validation of origin, production processes, packaging, and delivery to ensure all products, logistics, and finances meet the highest standards.


- DIRECTLY MATCHES SUPPLY & DEMAND: Efficiently matching supply and demand to meet the specific needs of our clients at the most competitive conditions and prices.

Our Established Transaction Practices

L&M accepts and entertains only logic and simple procedures established in over 300 years of trading and does without all sorts of proof and/or other conjectures. Our Firm tenders and requires only quotes, offers, orders, contracts and bankable securities. Period.


The only reliable indication (not proof) that a transaction will complete successfully is a procedure that requests and offers underlying bankable securities, from both (*) sides, at the appropriate time. Seller issues a SWIFT MT760 security, bank Performance Guarantee or Performance Bond and buyer offers SWIFT securities, MT700 documentary credit or MT760 standby letters of credit, bank guarantees, etc.
(*) Unless an oil major or a reliable producer are involved, in which case no security is necessary.

L&M pledges to follow good business practice with this simple schedule:

Seller

Invitation to tender (informal offer)

Buyer

Invitation to tender (informal enquiry)

Request for Quote (RFQ)
Offer
Purchase Order
Draft Contract
Sign contract (Sales Purchase Agreement or SPA)
Bankable security to buyer MT760 Performance Bond / Bank Performance Guarantee or, preferably, Late Delivery Discount (LDD) Bankable security to seller MT760 or MT700 before loading or before production (*)
Delivery of commodity and title transfer
Payment