SE: Structured LC business combines the financing of a real flow of commodities using the instrument of deferred payment LCs with the purpose of providing funding to financial institutions (importers’ bank / LC Issuing Bank) in mainly emerging markets and realising a benefit from other arbitrage (FX / interest rates) for traders. There are three key counterparties participating in Structured LCs: the trader, the issuing bank and the confirming and discounting bank. Each has their own clear commercial motives associated with their roles in the transaction which enhance their economic position through their use of such instruments.