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    Hedging System and Deal Linking

    Define and Manage Hedging Programs
    Deal Cross-linking & Coverage
    Under-above Hedging and Covering

Universal deal linking and hedging program management

Flexible Deal Covering and Hedging Management

Flexible Deal Covering and Hedging Management

QR Trading™ enables transaction cross-linking based on their asset classes and various business objectives, in a completely configurable manner. Linking relationships can be many-to-many. One deal can cover several other deals at different percentages of its volume. You can define multiple notions of deal covering depending on business objectives. The possibilities are endless to model all aspects of your financial and physical operations. Example of deal linking:

  • Hedging is a primarily type of deal linking.

  • Deal covering in energy and commodity operations: physical transactions are linked to production, logistics and financial hedges.

  • Deal covering in electricity operations: physical “demand or load” (retail and wholesale) can be covered by physical “power supply or generation”, which can themselves be covered by “transmission” deals. This can then continue into financial hedging as follows. Physical “power generation” transactions can be hedged by financial “fuel swaps”, which can themselves be hedged by FX futures.

  • In treasury, instruments involved in AP and AR are linked to FX hedges.

  • Assets, liabilities and investment products can be linked to cash, liquidity and payments across different time horizons.

  • Supply chain components can be cross-linked to invoice payment schedules for dynamic discounting.

  • Transactions can be linked to counterparty for collateral management, credit risk and exposure limit monitoring.

Dynamic Management of Hedging/Linking Programs

  • The Module automatically creates a covering / hedging program to cover all underlying deals with the assigned cover / hedge deals in the proportion needed. It does so by using existing covers / hedges not fully utilized or by creating new ones.

  • Dynamically manage "over" and "under" covered / hedged positions. Create, add or remove a link.

  • Risk control reports track hedging or covering policies and breaches of various thresholds such as hedging ratios with respect to some underlying.

  • Seamless integration with the risk module for hedge risk reporting.

  • “Over” and “under” covered / hedged positions undergo MTM and Cash Flow Analysis, allowing portfolio managers to effectively run covering / hedging programs.

  • Pre-trade MTM and VaR valuation of hedges to insure compliance.

Back Office Multi-Asset Class Trading

Hedge Accounting

The Module is seamlessly integrated with hedge accounting.

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Next Generation Dual Cloud On-site Platform

  • Leverage next generation dual-use cloud on-site architecture. QR Cloud is a live 24/7 supercomputing platform with a vast array of ready-to-use models and templates. You can select, download and customize any configuration from QR Cloud in your own instance, whether on-site or on QR Cloud.

  • QR System is a single universal software for all on-site and QR Cloud instances, and is upgraded quarterly free of charge. Actual clients’ implementation are configured in a database, which is portable from QR Cloud to on-site.

  • QR Cloud is ideal for medium size players. No software installation, IT infrastructure, resources or efforts required. All you need is a browser.

  • Private Cloud or on-site are for entities wishing to control data and processes.

New Commercial Paradigm

  • Whether on the cloud or on-site, no permanent license and no hefty initial license fee. Just pay 1 single yearly subscription fee for license, cloud supercomputing, maintenance and on-going upgrades.

  • Start with an actual Trial to test our platform and the quality of our expert team. Continue if satisfied. Cancel if the Trial fails to meet your expectations. 

  • Ready for use out-of-the-box, no development or coding.

  • Cost-effective speedy implementation via intuitive configuration. Select, download and customize any configuration from QR Cloud in your own instance, whether on-site or on QR Cloud. Save years and millions.

Need more information?

Our expert team are here to help with any questions you have regarding QR Cloud Services™. Call or email today.

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