A CMA is a legal and operational framework used to secure loans by leveraging physical commodities as collateral. It involves a tripartite or quadripartite agreement among:

• Financier (Bank): Provides the loan.
• Borrower/Depositor: Owns the commodities pledged as collateral.
• Collateral Manager: An independent third party responsible for supervising, controlling, and managing the storage of commodities.
• Warehouse Provider (optional): Manages the storage facility if not controlled directly by the collateral manager.

The collateral manager ensures commodities are stored securely, monitors their quality and quantity, and releases them only upon instructions from the financier or as per the agreement’s terms. CMAs are widely used for commodities like agricultural products (e.g., grains, coffee, cocoa), metals, coal, and petroleum products. They mitigate credit risk by ensuring the financier has control over the collateral until the loan is repaid. Key activities include:

• Approving and controlling storage facilities.
• Receiving and storing goods.
• Issuing warehouse receipts.
• Releasing goods only upon authorized instructions.

Typical process is as follows:

Trader selects the warehouse.
If the trader owns the warehouse, the CM takes a lease from the trader.
If the trader is leasing the warehouse, the CM takes a sub-lease from the trader.
These are rented by the CM at a nominal rent, allowing the CM to become the keyholder, and to gain uninterrupted access.
The landlord continues to be responsible for maintenance, security and for the physical handling of the stock.
The CM becomes responsible for the care, custody and control of the stock, providing warehouse receipts as goods arrive, and only allowing the goods to be released on the instruction of the trader (if bi-partite), or lender (if tri-partite) by a formal Release Instruction process.
The trader will select and direct a clearing agent.
The CM is prepared to receive the BLs and deliver them to the clearing agent, to allow the goods to be discharged from the vessel.
The CM may offer a port discharge service, tallying off the vessel, and recording vehicle and driver details.
This information is then matched against the same goods being delivered in to the CM warehouse, where the goods come under the CMA.

An SMA is a lighter-touch arrangement compared to a CMA, focusing on monitoring stock without the collateral manager taking full control. It is used when the financier requires traceability and periodic oversight of commodities rather than direct custody. Key features include:

• Purpose: Ensures transparency and traceability of goods along the supply chain.
• Parties Involved: Typically involves the financier, the commodity owner, and an inspection company.
• Process:
  • The trader selects the warehouse, which may be owned or leased.
  • The inspection company (acting as the stock monitor) may lease or sub-lease the warehouse at nominal rent to gain access and keyholder rights.
  • The monitor conducts continuous or periodic inspections to verify stock quantity, quality, and condition.
  • The landlord retains responsibility for maintenance, security, and handling, while the monitor records stock movements and reports to the financier.
• Use Case: SMAs are suitable when the financier trusts the borrower’s operations but needs assurance of stock integrity, often for commodities in transit or storage.

• Control: CMA involves full custody and control by the collateral manager; SMA involves monitoring without control.
• Risk Mitigation: CMA provides stronger risk mitigation for financiers; SMA is less stringent, focusing on transparency.
• Cost: CMA services are typically more expensive due to the intensive oversight and control required.

Companies Providing CMA and SMA Services by Region

Below is a list of companies known to provide CMA and SMA services in the specified regions, based on available information and industry insights. Note that the availability of specific services (CMA vs. SMA) may vary, and some companies may offer both or related services like inspections and warehousing. Due to the niche nature of these services, the list may not be exhaustive, and some regions have limited publicly available data.

Dubai (United Arab Emirates)

• Access World: Offers CMA services, managing collateralized goods like metals, agricultural products, and petroleum in secure warehouses. They operate in Dubai with expertise in stock control and regulatory compliance.
• AIM Control (AIM Group): Provides both CMA and SMA services, facilitating trade through commodity inspections, stock monitoring, and collateral management for agricultural and other commodities. They have a presence in Dubai.
• SGS: A global inspection and certification company offering CMA and SMA services, including stock monitoring and collateral management for commodities like oil, gas, and agriculture. SGS operates in Dubai with advanced warehousing solutions.
• Bureau Veritas: Provides inspection and collateral management services, including CMAs for commodities like metals and agriculture. They have offices in Dubai and support trade finance operations.

Singapore

• Access World: Operates in Singapore, providing CMA services for commodities like refined metals, agricultural products, and electronics, with secure warehousing and stock monitoring capabilities.
• AIM Control (AIM Group): Offers CMA and SMA services in Singapore, focusing on trade facilitation, stock monitoring, and collateral management for import/export commodities.
• SGS: Provides CMA and SMA services in Singapore, specializing in commodity inspections, stock monitoring, and collateral management for oil, gas, and agricultural products.
• Bongani Consulting: While primarily Africa-focused, they have connections in Singapore for CMA services, particularly for commodity trade finance.
• Control Union: Offers commodity inspection and collateral management services, including CMAs and SMAs, with a presence in Singapore for agricultural and industrial commodities.

USA

• Clearstream (Canadian Collateral Management Services – CCMS): While focused on Canada, Clearstream’s collateral management system extends to the USA, offering tri-party repo and securities finance solutions that include CMA-like services for financial institutions.
• SGS: Operates across the USA, providing CMA and SMA services for commodities like agriculture, oil, and metals, with expertise in stock monitoring and collateral management.
• Bureau Veritas: Offers CMA services in the USA, focusing on commodity inspections and collateral management for trade finance, particularly for energy and agricultural sectors.
• Intertek: Provides commodity inspection and collateral management services, including CMAs and SMAs, for oil, gas, and agricultural products in the USA.

Hong Kong

• Access World: Provides CMA services in Hong Kong, handling commodities like metals, agricultural products, and high-value electronics with secure warehousing.
• AIM Control (AIM Group): Offers CMA and SMA services in Hong Kong, supporting trade finance with stock monitoring and collateral management for commodities.
• SGS: Operates in Hong Kong, providing CMA and SMA services for commodities like oil, gas, and agriculture, with a focus on inspection and stock monitoring.
• China Telecom (Colocation Context): While primarily a data center provider, their infrastructure management services in Hong Kong may support commodity storage monitoring for high-value goods, potentially overlapping with SMA-like services.

India

• Sohan Lal Commodity Management Pvt Ltd (SLCM): A leading warehousing and collateral management provider in India, SLCM offers CMA services for banks and financial institutions, managing agricultural commodities like guar, chana, and mustard in licensed warehouses.
• National Collateral Management Services Limited (NCML): Provides CMA and SMA services in India, focusing on commodity storage, stock monitoring, and collateral management for agriculture and non-agri commodities. They operate MktYard.com for e-auctions and trade settlement.
• Control Union: Offers CMA and SMA services in India, specializing in commodity inspections and stock monitoring for agricultural and industrial products.
• SGS: Provides CMA and SMA services in India, with expertise in commodity inspections and collateral management for trade finance.

China

• SGS: Operates in China, offering CMA and SMA services for commodities like oil, gas, metals, and agriculture, with advanced inspection and stock monitoring capabilities.
• Bureau Veritas: Provides CMA services in China, focusing on commodity inspections and collateral management for trade finance in energy and agricultural sectors.
• Control Union: Offers CMA and SMA services in China, specializing in commodity inspections and stock monitoring for agricultural and industrial products.
• China Telecom: Their data center and infrastructure management services in China may support high-value commodity storage monitoring, potentially aligning with SMA-like services.

Europe

• Clearstream: A leading provider of collateral management services in Europe, offering sophisticated CMA-like systems for securities finance and commodity collateral management, with partnerships across central securities depositories and banks.
• SGS: Operates across Europe, providing CMA and SMA services for commodities like oil, gas, metals, and agriculture, with expertise in stock monitoring and collateral management.
• Bureau Veritas: Offers CMA and SMA services in Europe, focusing on commodity inspections and collateral management for trade finance.
• Control Union: Provides CMA and SMA services in Europe, specializing in commodity inspections and stock monitoring for agricultural and industrial products.

Africa

• Collateral Management International (CMI): A leading provider in Africa, CMI offers CMA, SMA, stock monitoring, and inspection services for commodities across the continent. Based in Mauritius, they focus on agricultural and traded commodities.
• Vallis Commodities: Operates in Africa and the Middle East, providing CMA services to banks, corporates, and funds, with a focus on commodity trade finance.
• AIM Control (AIM Group): Offers CMA and SMA services in selective African regions, supporting trade facilitation through commodity inspections and stock monitoring.
• SGS: Provides CMA and SMA services in Africa, specializing in commodity inspections and collateral management for oil, gas, and agriculture.

South America

• SGS: Operates in South America, offering CMA and SMA services for commodities like agriculture, oil, and metals, with expertise in stock monitoring and collateral management.
• Bureau Veritas: Provides CMA services in South America, focusing on commodity inspections and collateral management for trade finance in energy and agricultural sectors.
• Control Union: Offers CMA and SMA services in South America, specializing in commodity inspections and stock monitoring for agricultural products.
• CyrusOne (Colocation Context): While primarily a data center provider, their infrastructure in South America may support high-value commodity storage monitoring, potentially overlapping with SMA-like services.

Australia

• Access World: Provides CMA services in Australia, managing commodities like metals and agricultural products with secure warehousing and stock monitoring.
• SGS: Operates in Australia, offering CMA and SMA services for commodities like oil, gas, metals, and agriculture, with expertise in inspection and stock monitoring.
• Bureau Veritas: Provides CMA services in Australia, focusing on commodity inspections and collateral management for trade finance.
• Control Union: Offers CMA and SMA services in Australia, specializing in commodity inspections and stock monitoring for agricultural and industrial products.

Notes and Limitations

• Data Gaps: Information on CMA and SMA providers is limited in some regions (e.g., South America, parts of Africa) due to the niche nature of these services and lack of public disclosure. Some companies may offer these services without explicitly advertising them.
• Colocation Context: Some references (e.g., China Telecom, CyrusOne) relate to data center colocation, which may overlap with SMA-like services for high-value goods (e.g., electronics) but are not traditional commodity-focused CMAs/SMAs.
• Verification: Companies like SGS, Bureau Veritas, and Control Union are global players with broad service offerings, making them likely providers in multiple regions, though specific CMA/SMA operations may require local confirmation.
• Regional Focus: Africa has specialized providers like CMI due to the high demand for commodity trade finance, while regions like Europe and the USA focus more on financial collateral systems (e.g., Clearstream).