Currency hedging
FX hedge ratios fall across top 10 US managers
Counterparty Radar: Proportion of forwards to assets has been sliding since Q3 2020, but some firms buck trend
Updates to FX Global Code include pre-hedging guidance
GFXC updates 11 of code’s 55 principles, including advice on controversial practice of pre-hedging
Hedging valuation adjustment gets cold shoulder from banks
Dealers back the idea of charging for hedging costs - including FX options - but not as part of a new XVA
Chinese exporters urged to ramp up US dollar hedges
Dealers join China’s Safe in sounding alarm at mounting unhedged FX exposures
Tighter RMB rates basis brings new hedging opportunities
Increasing alignment between CNH and CNY benchmarks opens door to more cross-currency hedging by foreign lenders
Internalisation in the spotlight? Don’t hold your breath
Industry relaxed about internal hedging despite BIS warning of potential threat to price discovery
EU benchmark drama set for cliffhanger end
Access to key FX rates due to be decided six months before potential cut-off
Margin rules snare FX options users
US banks forced to post margin on ‘naked’ trades, with buy-side firms soon to follow
China derivatives appetite set to grow as PBoC lifts deposit rule
Central bank rule change could cut hedging costs by up to 100bp, traders say
Taiwan regulator open to more onshore insurer FX hedging
Central bank suggests lifers can use onshore swaps to hedge dividends, but some warn it could hit NDF market
RMB hedging comes onshore as regulators liberalise FX market
Foreign investors turn to CNY for bond hedges as rule changes spur more competition
Jittery ringgit spurs options growth in Malaysia
Local corporates seek new hedging tools, but longer-term options liquidity lacking
Banks tout early roll dates for FX swaps as quarter-end looms
Asset managers open to more flexible hedging strategies since March turbulence, say dealers
Banks struggle to keep trade flows in-house during volatility
Directional markets in March tested dealers’ ability to internalise risk
Inside March madness with Citi’s Tuchman
Interview: Trading rooms went virtual, central banks stepped up – but some platforms flopped
How carbon-cutting Drax manages currencies and credit
Interview: UK power giant uses option selling – and other tactics – to create hedging headroom
ESG-linked hedges raise interest – and questions
Carrot-and-stick trades pay off if green targets are hit, but setting and monitoring those goals is tricky
Green FX hedging tipped to grow after BNPP/Siemens Gamesa deal
If the energy company misses ESG score it will pay a “sustainability premium” towards forestry projects
Deal misfires expose risk of contingent hedging
Banks hike premiums on deal contingent swaps amid Brexit uncertainty
Kantox provides Citi’s commercial bank with enhanced FX payments
Corporate clients in US will see connectivity improvements as Kantox operates as “software layer”
Northern Trust acquires BEx to strengthen FX capabilities
Acquisition follows successful two-year relationship that led to distinctive currency solutions for the bank
FlexTrade integrates pre-trade model into EMS
Modelling tool helps users plan trades, cashflow and hedging ahead of time
Record launches FX guide for pensions industry
It gives pension managers insights into the risks and opportunities currencies present
Record expands relationship with WisdomTree
The specialist currency manager will provide additional EM signals to the asset manager