FX HedgePool provides shelter from market spreads.

March 27, 2020
Jay Moore

FX HedgePool provides shelter from market spreads.

Amidst the market turmoil created by the Coronavirus, peer-to-peer provides safe harbor for passive hedgers who are seeing spreads surge to frightening levels.

As FX traders scramble to find liquidity to meet their trading requirements where spot, forward and swap spreads widen to many multiples, FX HedgePool holds the line, safeguarding investor performance.  

For FX trading desks that are mandated with maintaining passive hedging strategies, the requirements to roll positions persist regardless of market conditions, price levels or market spreads making best execution impossible to satisfy. And giving innovative technologies, like FXHP, a chance to prove their worth.

“These spreads reflect what happens when there is extreme premium for risk transfer. However, when peers have naturally offsetting positions, this risk premium can be eliminated.” says Jay Moore, CEO and Founder of FX HedgePool. “This is yet another example of why a trusted network of peers is so valuable - secure and dependable liquidity, you can count on.”

FX HedgePool, together with a growing panel of top tier banks, like Standard Chartered, have been successfully matching FX swap liquidity among the buy side since January.  With the March monthly roll just around the corner, committed volumes have surged to nearly 10 times from the prior month as members seek to avoid the higher spreads demanded by the market.

Peer-to-Peer matching has proven not only to be viable, but sustainable – ensuring consistent, reliable spreads while avoiding the pressures of market trading, improving performance drag and limiting operational risk.

About FX HedgePool

FX HedgePool is a multi-award winning matching platform for the mid-market execution of FX swaps that is transforming the market through its breakthrough unbundling of liquidity from credit. This is unlocking vast potential for passive hedgers to provide liquidity to each other, while leveraging existing counterparty relationships for credit provision. Passive hedgers can now access a new source of safe and dependable liquidity, eliminating unnecessary friction for both the buy-side and the sell-side. Founded in 2019, FX HedgePool is on a mission to modernize institutional FX through bold innovation and leading-edge technology for the betterment of all.