Reporting & Analysis
Our clients receive custom transaction reporting and transaction cost analysis (co-operation with BestX), as well as sophisticated analytics such as FX risk/return effects and causalities in your exposure. This has been supplemented by FX HEAT, a next-generation performance analytics tool that delivers transparency and traceability of the hedge efficiency – a prerequisite for clients looking to gain a deeper understanding on the impact of performance.
Our most recent enhancements extend these reportings to calculate increasingly complex exposure structures. In addition, we integrate our simulation and back-testing functionalities into our core overlay infrastructure. This allows us to historically simulate any strategy / strategy combination / parameterisation (passive / dynamic / hybrid / diversified, thresholds, tenors etc.) in a live client portfolio.
The analytics tools embedded in our FX Overlay infrastructure help our clients to increase transparency, substantiate their decisions and better control the FX effects in their business.
FX Overlay strategies are often implemented in fund structures that may have limited options to cover short term liquidity requirements. A classical multi-broker OTC trading setup results in both collateral payments and notional settlements to be exchanged with multiple counterparts. The respective exposures often have opposing directions and there is limited scope to net positions (aside from CLS settlement).
HSBC’s “prime brokerage light” setup both allows perfect netting in the above mentioned scenarios (therefore minimising the cash requirement esp. for collateral purposes) AND allows us to offer additional integrated solutions targeted at improving your liquidity situation – like Collateral netting and Collateral financing.