Alloq’s Currency Hedging module offers a seamless solution to manage and control your FX risk by providing real-time insight into the current exposure, hedge and mismatch. Alloq can create orders to minimize currency risk, all STP.
The system calculates optimal trades based on existing FX derivative positions, considering parameters like ticket size, maximum buy limits, counter-party risk, and rolling hedge strategies. With this automated approach, operational risks are heavily reduced, freeing up valuable time for more important work.
Alloq provides a robust setup for investment managers to create mandates for any hedging policy related to currency or asset class, whether based on benchmark weights, market weights, or proxies.
Investment managers have full control and can quickly test what-if analyses and various scenarios, as well as validate their model with their customers or model validation team.
Spotting anomalies directly in a portfolio is easier with automated exception reporting, and any deviation from the expected value triggers a proactive signal. With Alloq, users can view data drilled-down at currency, asset class, and gross/net FX exposure levels.
The Alloq system loads current market values, FX contracts and mandates, allowing users to keep a clear grip on their portfolio and (hedge) positions. Adjustments are made based on clear, filterable data, and users can create orders directly from the software for maximum control and efficiency.
All applied adjustments are recorded in an audit log via the Alloq event-sourcing feature. The records within this log contain the name of the user, date, time and a precise description of the applied adjustment.
This Alloq feature is built specifically for the purpose of transparency, compliance and auditability.
Alloq offers the option to view the entire currency exposure with a minimal delay between insight and the actual sending of orders to the back office. The process can also be performed completely STP.