London-based fintech C8 Technologies is set to launch an FX hedging platform which employs systemic trading models to help businesses manage their currency exposures.
Named C8 Hedge, the new platform provides guidance to corporate treasurers and investment professionals for managing their foreign exchange exposures across a range of currencies, using online tools.
The platform employs machine learning and statistical models to help predict future FX movements, enabling users to develop hedging solutions which align with their specific needs.
According to C8, through its active approach, C8 Hedge allows users to benefit from currency movements, increasing returns when compared to those offered by passive FX hedging.
The platform has the ability to adapting the shifting market conditions to access opportunities and mitigate risk, offering a hedging solution to protect portfolios against adverse currency movements.
“Applying our systematic trading models to FX hedging through an intuitive platform that anyone can use allows corporates and funds avoid the complexities they would otherwise face when they buy an asset or sell products overseas” said Mattias Eriksson, chief executive at C8.
“FX presents intricate risks that require a tailored approach, which is why we have designed the platform to allow users to easily craft customised FX hedging solutions that meet their exact requirements every time they need to handle foreign currency exposure”.
C8 Hedge users are also able to: calculate optimal FX hedge ratios for all their currency exposure including both assets and liabilities; add risk weights for each currency exposure; calculate optimal FX ratios for each currency within a portfolio risk limit.
Alongside that, users are able to use their existing FX execution implementation – without the need for any integration work – and keep full control of all FX hedging.
Jonathan Webb, former head of FX strategy at Jefferies, manages the C8 Hedge platform. Webb also previously served as a portfolio manager and proprietary trader at banks including HSBC, Credit Suisse, RBS and Bank of America, as well as hedge funds C-View and GLC.
“Managing FX exposure can be complex and easy to get wrong, a combination that provides treasurers and funds with an unwelcome problem every time they buy and sell overseas assets,” said Webb.
“C8 Hedge makes the process much simpler and effective by automating the risk management process, offering users proactive strategies to optimise outcomes while freeing them to concentrate on their fundamental business activities”.