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.
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.
Minimize impact of FX volatility on profits
With HaaS, clients are not only hedged against unfavorable FX fluctuations, but also continue to enjoy any gains resulting from FX market movements.
Improve ability to forecast future cash flow
Clients can grow their cross-border business with confidence without worrying about future FX movement and volatility.