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Corporations increasingly using FX options for hedging according to Misys

Misys, the leading provider of confirmation matching services - see Figure, analysis of clients usage of the Misys Confirmation Matching Service (CMS) in 2011 compared to 2010 shows a rapid increase in the use of foreign exchange options by its corporate and fund management clients. Combined with a 25% increase in active client sites, the rise demonstrates the heightened volatility in international currency markets, and the increasing need for corporations to review their hedging strategies in times of increasing uncertainty in the Eurozone.

Misys Confirmation Matching Service

Source & Copyright©2011 - Misys

"These are certainly increasingly difficult times for corporates to manage and mitigate FX risk," said Stefan Lind, Group Treasurer at Saab AB., the global defence and security company. "We have found that we are increasingly hedging that risk with the use of FX options, and being able to work with Misys and its Misys CMS solution makes that strategy so much easier to implement and removes the post-trade operational risk that would otherwise exist if we were not using this electronic service."

Misys currently provide confirmation matching services for:

  • foreign exchange spot, forward, swap, NDF (MT300)
  • foreign exchange option (MT305)
  • Non Deliverable Options (NDO's) (MT305)
  • Exotic Options (MT306)
  • Exotic foreign exchange options attaching a document
  • money market (MT320) and money market funds
  • Precious and Base metals (MT600 and/or MT 300)
  • Commercial Paper.

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