16 December 2020

Is Santa FX Hedging this Christmas?

It's Christmas - so we decided to have a bit of fun as in terms of a global importer Santa would have to be right up there. This is a light hearted take on what FX hedging transactions at the North Pole might look like.

Think about it. In terms of a global importer Santa would have to be right up there. FX hedging transactions must be a daily occurrence as goods from around the world are rallied for annual distribution. You would think, jolly as he is, Santa would also have an eye for cost reduction and making sure what he does is fully compliant.

In putting Hedgebook on his Christmas List here are three things we believe Santa (and any other corporate FX manager) should be looking for this year:

1. FX Hedging for Christmas wishlist: An FX Management tool that is really easy to use

Santa’s army of elves needs to be able to pick up any tool and use it with minimal training and the ability to access from anywhere. Likewise, your team has to have intuitive tools to make FX valuations and management really simple and easy to report against.

Easy doesn’t mean ‘basic’. You need an FX hedging tool that will cover:

  • FX and other derivative valuations
  • Sensitivity management
  • Comprehensive reporting
  • Independent audit

We know we can set Hedgebook up in pretty much any environment (even the North Pole), including any required data management, within a 24 hour window. But, more importantly for you, our customers tell us they are up and running after just an hour or so of online training. Our support team also gets a special mention pretty much every time we talk to customers.

2. Single source of FX hedging truth

Anyone on Santa’s team (and yours) needs to be able to go to one place and know what they are looking at is the definitive result. No questioning. No referencing. No needing to look anything else up. What you see should be the FX hedging position you have.

Reporting on that should also be ‘one click’ easy and available to your team no matter where they are based. You should be able to see at a glance the mark-to-market on your FX forwards and options. Likewise, when keeping track of multiple hedges you should get an alert or be able to run a daily ‘upcoming deals’ report to track when your next hedges require settling.

3. Reduce time spent on administration and compliance

Even the diligent elves file compliance and administration into the “boring, but necessary” category. But Santa knows how important it is – he is held to account just like everyone else. Hedgebook’s financial reporting thankfully ensures transparency and meets the required accounting standards.

Hedgebook removes the pain of completing independent valuations and sensitivity reporting. No more relying on spreadsheets and manual updating. Not only time consuming but as Santa quickly realised, a major distraction from the real work at hand.

Happy Hedging Holidays

In what could be your best Christmas present yet, Hedgebook automatically ticks the compliance boxes and makes the administration of managing your hedges and exposures intuitive and easy. Even better – this isn’t a seasonal offering. Hedgebook is a year round gift that just keeps giving (at least that’s what we believe).

Happy Holidays and if you want to join Santa in giving Hedgebook a go for FX hedging this Christmas – sign up for an obligation free demo here.



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