Hedging With Us
Whether or not your institution has experience with hedging products, MFX can help make hedging understandable and straightforward to implement. MFX uses standard derivatives contracts and our staff will guide you through the steps needed to establish a hedging relationship and then help you develop a hedging strategy that meets your needs.
The set-up process involves two main steps:
- Signing an International Swaps and Derivatives Association (ISDA) agreement, the industry standard for all derivatives contracts.
- Providing credit information to MicroRate, MFX’s credit due diligence partner.
Once the basic contractual framework is in place we work with our clients to identify the best options for managing currency risk and then provide pricing and guidance through the deal process. We also provide advice on hedge accounting and other ways to make hedging easier to implement.