Faster, automated, and a more precise overview of your daily hedging needs & hedge rolls
Every day we strive towards our mission – helping buy-side clients professionalise their FX-hedging operation. But what does that mean? We have chosen three areas of focus. I will walk you through them in this blog.
- Minimise operational risks and efforts in the FX-hedging process
Our solution is automated. Closely integrated with your portfolio management system and trading system. Many institutions still have a (semi)manual process on gathering data, measuring risk, and getting the required trades to the execution platform.
This focus is our core principle. For building our more advanced features, we first need to have a solid automated solution, where manual processes are eliminated, and the operational risks are minimised. This is our enabler for optimisation. The hidden benefit is that we eliminate boring tedious processes for both portfolio managers, traders, and the back office.
- Faster, automated, and a precise overview of your daily hedging needs & hedge rolls
Time is money. In this case, this saying has a very concrete meaning; to be able to trade at the lowest cost in the various FX-crosses, you need time to structure and execute your hedging needs. The more time you have for these two steps, the more you can achieve lower trading costs.
The automation of smaller, simpler trades leaves even more time to analyse and decide on how to hedge more complicated matters and on building solid hedges that match your asset base better.
- Lower the total cost of transaction on your FX-trades, directly improving your return
The goal for us is to help you build the best hedges at the lowest price. Optimising your FX hedging can improve your trading costs with 1-5 pips. With a mixed global portfolio, you will trade FX corresponding to 3-4 times your AUM.
Lowering your costs by up to 5 pips will have a significant impact on your performance. This money can be spent on more analysts or simply on improving your return.
The best thing is that the side effect of the significant savings is that you build better hedges, you eradicate manual processes and get to focus on value-creating analysis.