FEC’s allow you to lock in an exchange rate now for a payment or receipt occurring in the future. This allows the business to avoid future fluctuation in exchange rates and thereby have price certainty. These contracts require the business to post collateral (margining).
We are also able to grant you a FEC facility, which has the added benefit of not requiring your business to post margin. In order to access this facility, we will perform a credit review of your business, which allows us to allocate trading lines to you.
Some businesses manage exchange rate risk by implementing strict hedging policies, while others simply accept the risk. We can assist you by facilitating your FX risk management requirements and explain the various currency exposure management options that are available to you.
Our team of experienced dealers and portfolio managers will provide you with a view on the FX market, furnish you with detailed research reports and invest time in understanding your business. We try to maximise value for our clients, with customer service and satisfaction being core to our value proposition.
The Risk management module helps your business track its foreign exchange exposure, measure to what extent you are covered against this exposure and whether you are in line with your businesses’ treasury risk policy (hedging policy).
The risk management module will give you insights into what your position would be (and the financial implication to your business), if exchange rates were to move by a certain percentage in either direction. These simulations provide you with a good idea of best-case and worst-case scenarios, helping you plan accordingly.