​SPGCINP, AS51 Ratio Variance Swap Spread Finding Favor

Relative value hedge funds are showing increased interest in entering into ratio variance swap spreads on the S&P GSCI Industrial Metals index (SPGCINP) versus the ASX 200 (AS51). One of the largest orders for the trade has been from a hedge fund already active in commodity/equity variance spreads, such as silver vs. S&P 500 and copper vs. S&P 500, while new entrants have also been showing demand for the strategy.