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FX Overlay for Corporate Clients

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HSBC FX Overlay provides a unique infrastructure to automate your FX workflows and allows access to industry-leading FX hedging strategies.

HSBC FX Overlay offers solutions for corporate clients from various industries. We help to manage corporate currency risks including (single) transactions, intercompany loans, balance sheet risks and real estate as well as securities portfolios in foreign currencies.

We can also help with innovative FX solutions around intra-company and / or general multi-currency cash management schemes.

HSBC Autohedge

Autohedge is an automated solution tailored to our corporate clients. The demands of managing FX risk can be a time-consuming and sometimes daunting task.

Autohedge provides you with a range of hedging tools and strategies to meet your existing hedging policies.

HSBC’s FX Overlay engine will pre-calculate all trades based on your risk and hedging positions. An easy to implement web-interface displays these trades and allows for bulk execution. Autohedge thereby helps to reduce operational risk and increases efficiency in FX risk management.

Implementation of self-developed hedging strategies

HSBC’s open architecture IT platform allows you to automate your hedging strategy and process.

You can either choose from the broad range of available strategies or define your proprietary hedging strategy. HSBC will then technically implement this strategy on its own platform and feed it into the automated hedging process.

You will benefit from HSBC’s state of the art platform with automated calculation, booking and reporting into your proprietary systems without having to build or sustain your own infrastructure.

Dynamic Hedging

Dynamic strategies are designed to actively adjust the hedge ratio to achieve an asymmetric risk profile, that aims to reduce cash flow risk from the hedging strategy and generate an out performance compared to passive hedging strategies.

HSBC supports a suite of different FX strategies, either developed by HSBC, third party investment managers or those created by our clients themselves. HSBC manages the daily implementation of those strategies in an outsourced business model.

Our product solutions are fully supported by our FX Overlay technology and proven risk management workflows. Given our high level of automation we aim to deliver an efficient and cost-effective implementation of the desired FX hedging framework.

Our clients keep full control of the hedging programme at all times, whilst HSBC provides not only the fully outsourced hedging workflow but also various reports and analytics to support supervision and governance activities. This includes transparent reporting on the daily activities, data on risk and return, best execution and – if needed – bespoke analytics and scenario / simulation analytics.

Learn more about the value add services in our FX Overlay offering.

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HSBC FX Overlay

FX Overlay is an automation and outsourcing solution to help HSBC's clients improve FX hedging efficiency, reduce operational risk and increase transparency.

FX Overlay for Institutional Clients

The HSBC FX Overlay Infrastructure is designed around control, transparency and automation of FX risk management in your portfolio.

Innovative Infrastructure and Automation of FX risk management

HSBC FX Overlay supports you in choosing the optimal FX strategy. We then implement it, comprising calculation, execution, reporting and liquidity management.

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Need help?

For more information, please contact us at HSBCOverlayFX@hsbc.com