“Many corporate treasurers are fully aware that the most effective way to hedge their currency exposure is through the use of options,” says David Gershon, President and Chief Executive of SuperDerivatives.
“However, to use them, they have to be completely comfortable in their understanding of the risk they are assuming and often they have to show that their strategies meet with and comply with accounting standards, such as IAS 39 and FAS 133. In response to feedback from our existing corporate clients, we have added functionality that basically makes it easier for them to use options,” he adds.
Recently added features include a function that intuitively matches up any hedges that have been initiated with exposure, such as anticipated payments and receipts in a foreign currency. This helps provide easy monitoring of both the hedge and the underlying, helping compliance with hedge accounting.
Trades can also be stored and managed by designated business areas, which helps tracking for audit purposes. All deals can be viewed and analyzed in flexible horizontal displays showing all details, such as the Greeks and accurate mark-to-market revaluations.
“Users can configure SD-FX to deliver all the information they need to manage their risk and any hedges that mitigate it. It can perform advance risk scenario analysis, stress testing and alert users if there are any unexpected moves in the market. It can deliver numerous types of reports, which are fully customizable and can be delivered in a variety of formats,” says Udi Sela, product manager for the corporate version of SD-FX .
“The new functionality complements the existing powerful tools on SD-FX, such as its Looking-For-Strategy hedging-wizard, embedded structures and retroactive and real-time valuations. We have found that the corporate sector is very keen to manage its exposure efficiently, but they have to have specific necessary to help them do that. SuperDerivatives is 100% committed to meeting their needs,” concludes Sela.
