We relied on years of experience as experts in this solution to conceive a tool which meets the highest standards in the industry.
Distant servers are mirroring and securing your data in real time giving you the confidence to receive and execute computation results in due course.
Our solution incorporates numerous hedging criteria that helps you define your own hedging strategies :
- Hedging horizon (monthly, quarterly, semi annualy)
- Target hedge
- Tolerance interval
- Absolute min and max unhedged
- Hedging currency
- Roll date mode (end of period, fixed date, every third thursday of the month…)
- Netting options across portfolios to minimize market costs
We use the fund administrator daily market value of those hedging positions to provide our clients with the most accurate solution available in the market.
Our tool will compute the necessary hedging by comparing expected hedge with current hedge, using a two step process:
- Relative barrier to assess whether or not the expected hedge is within the tolerance interval
- Absolute barrier to hedge any unwanted resulting that may appear
Once per period, the tool will roll positions in two main stage:
- Rolling session (usually in the morning) which consists in closing current positions with spot orders and opening new ones using forwards
- Business as usual session (usually during the afternoon) to fill the gap that may appear between the rolling session and the latest data available
Furthermore, we adjust the platform so it can fit with your custodian, fund administrator and transfert agent and broker (either in house or third party).
Along with a fully automatized solution that limits operational risks, daily reports that helps you monitor this activity, HedgingFX will sign a service level agreement that states roles and responsabilites of every parties involved.
95% of security failures come from human error (source Gartner).
At hedgingFX, security is an integrate component from the beginning. We worked with expert to conceive a robust solution and design a secure infrastructure.
We implemented numerous measures following best practices and expert advices such as least privilege access, two authentification factor, end to end encryption, database encryption and segregation as well as whitelisting firewall.
Of course, our servers and applications use latest versions with up to date security patches.
Moreover, when receiving data from an external source, our code is designed to avoid any SQL injection or other malicious code.
Our tool has been developed in Python with PostgreSQL. We used the most of this language and database management system to offer our clients with an accurate and auditable solution.