Enabling a scalable, technology-driven approach to FX hedging
Summary
A global retail company’s spreadsheet-based hedging process had become size-constrained and unable to expand with its growing global footprint, leaving the company materially exposed to new-market risk.
Company goals
- Migrate away from an excel-based solution to support scale
- Achieve an auditable system of record
- Align accounting process with best-in-class solution
Key activities
- Loaded current and historical data to support ongoing program and look-back needs
- Aggregated thousands of rows of excel-based exposure data in dynamic, interactive dashboards
- Automated valuations, journal entries and effectiveness testing through ChathamDirect™
Results
- Achieved real-time visibility into evolving exposures and the effectiveness of current hedging programs
- Materially reduced manual month-end activities while simultaneously improving accounting processes
- Implemented a scalable, technology-driven approach to cut ramp-up time needed for new currencies by 90%
About ChathamDirect
ChathamDirect is a groundbreaking financial risk management and hedge accounting platform that supports foreign exchange, interest rate, and commodity hedging programs. ChathamDirect provides a clear view of your entire hedging program, including cash flow forecasts, balance sheet exposures, and hedge requests — all securely available on a leading SaaS platform. ChathamDirect is backed by Chatham Financial, an employee-owned, independent market leader with a global team of capital markets experts, risk management advisors, CPAs, lawyers, quantitative analysts, and technology developers who serve more than 3,000 clients annually.
Schedule a demo
Contact us for a complimentary demo of Chatham’s technology to learn first-hand how it can help you manage financial risk.
Disclaimers
Chatham Hedging Advisors, LLC (CHA) is a subsidiary of Chatham Financial Corp. and provides hedge advisory, accounting and execution services related to swap transactions in the United States. CHA is registered with the Commodity Futures Trading Commission (CFTC) as a commodity trading advisor and is a member of the National Futures Association (NFA); however, neither the CFTC nor the NFA have passed upon the merits of participating in any advisory services offered by CHA. For further information, please visit chathamfinancial.com/legal-notices.
Transactions in over-the-counter derivatives (or “swaps”) have significant risks, including, but not limited to, substantial risk of loss. You should consult your own business, legal, tax and accounting advisers with respect to proposed swap transaction and you should refrain from entering into any swap transaction unless you have fully understood the terms and risks of the transaction, including the extent of your potential risk of loss. This material has been prepared by a sales or trading employee or agent of Chatham Hedging Advisors and could be deemed a solicitation for entering into a derivatives transaction. This material is not a research report prepared by Chatham Hedging Advisors. If you are not an experienced user of the derivatives markets, capable of making independent trading decisions, then you should not rely solely on this communication in making trading decisions. All rights reserved.
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