HaaS

Hedging as a Service™

With the growth of cross-border trade, SMEs are increasingly exposed to foreign exchange fluctuations. M-DAQ is developing a cross-border risk transfer solution aimed at helping SMEs limit their FX exposure.

CURRENT SITUATION

FX losses from deferred payments

Due to FX fluctuations, a company can suffer losses from the delay between the valuing of their contract and the receipt of payment in a foreign currency.

Uncertainty in cashflow projections

Without certainty in their foreign currency receivables and payables, inaccurate forecasting may result in cashflow difficulties for businesses.

No easy access to FX hedging instruments

Due to a lack of knowledge or constitutional restrictions, SMEs typically do not hedge their FX exposure.

HaaS addresses the problems faced by SMEs by giving clients the flexibility to eliminate some or all of their FX risk. Clients access a single, easy to use platform to customize their coverage. The ability to customize the notional amount of FX hedged, contract term, and preferred exchange rate means clients can customize the service to what they need. Once confirmed, the order is placed immediately and the client is hedged against unfavorable FX fluctuations for the term of the contract. Clients can enjoy peace of mind, and will even enjoy any FX gains from market movements.

Hedging as a Service: HaaS

Flexible and low-cost FX hedging

HaaS allows full customization of the notional amount of FX hedged, contract term, and preferred exchange rate by clients via an easy to use platform.