C8 Technologies, the London-based fintech founded by former BlueCrest Capital Management partners Mattias Eriksson and Ebrahim Kasenally, is launching an FX hedging platform which is designed to employ advanced systematic trading models to help businesses easily and effectively manage their currency exposures.
The firm writes that C8 Hedge offers corporate treasurers and investment professionals precise guidance for actively and optimally managing their foreign exchange exposures across multiple currencies, using intuitive and simple to use online tools.
Employing machine learning and statistical models to help predict future FX movements, the platform helps users quickly craft customized hedging solutions that align precisely with their needs.
Through its active approach, the platform allows users to potentially benefit from currency movements, boosting returns beyond those offered by passive FX hedging. It can also adapt to changing market conditions to quickly seize opportunities and mitigate risk, offering a dynamic hedging solution to shield portfolios against adverse currency movements.
In addition, C8 Hedge users can:
Calculate optimal FX hedge ratios for all their currency exposures, both assets and liabilities
Add risk weights for each currency exposure
Calculate optimal FX ratios for each currency within a portfolio risk limit
Use their existing FX execution implementation – no need for any integration work
Keep full control of all FX hedging
The C8 Hedge platform is managed by Jonathan Webb, formerly Head of FX Strategy at Jefferies, and previously a portfolio manager/ proprietary trader at major banks (including HSBC, Credit Suisse, RBS, Bank of America) and hedge funds (C-View, 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,” says 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”.
“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” says Mattias Eriksson, CEO 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 customized FX hedging solutions that meet their exact requirements every time they need to handle foreign currency exposure”.
