QR Trade Capture has a built-in automated Hedging System. A given deal type can be configured to inherit underlying hedges, and upon inception, the system automatically creates a hedging program for it with the hedge deals needed in the proportion needed. It does this by using existing hedges not fully utilized or by creating new hedge requisitions that will be processed by traders, then approved and confirmed by managers.

 

QR Trade Capture allows you to cross link transactions based on their asset classes and various business objectives, in a completely configurable manner.

Some deals can be designated as hedges. The linking relationships can be many-to-many. One deal can cross hedge several other deals at different percentages of its volume. One deal can be hedged by several other deals (of possibly different deal types), up to 100 % of its volume.

E.g., a retail electricity deal in Asia Pacific, can be first hedged by its generation fuel in US $, then the US $ Amount can be hedged to the native currency using a suitable FX swap.

Offers a comprehensive overview, as a dynamic tree, of each base deal, e.g., a physical deal, and the lineage of all the hedges, covering it, including their cross linkages across trees, emanating from different roots, with actual dates of each hedge creation.

Violation of hedging policies, whereby a given deal type failed to be hedged within so many business days of its confirmation, by a series of appropriate hedges can then be tracked and sanctioned.

Automated Hedging
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QR Trade Capture offers an automated hedge balancing portfolio analysis tool. This performs various cash flow analysis based on the cost of hedging, FX or fuel and comprehensive Mark to Market valuation of all over and under hedge positions.

Portfolio managers can maintain a fully hedged book and can balance positions and manage them as dynamic portfolios. This hedging dashboard is accessible live to users.

Hedge Tracking Report
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