Kantox is blazing a trail again with Dynamic Hedging, a unique product that allows companies to fully automate the management of their multi-currency operations. Having enjoyed exponential growth in its first six months, in which more than $100 million were traded through the product, it represents a game-changer for companies' management of FX risk.
“Transparency, pricing and improving the user experience (UX) are essential to keep competing in the finance sector, but they are not enough. The launch of Dynamic Hedging positions us at the forefront of the latest trends in an increasingly mature fintech industry, where success depends on the creation of products that are truly innovative and sophisticated, in which cutting-edge technology is at the fore,” explained Philippe Gelis, Kantox's co-founder and CEO.
Dynamic Hedging delivers added value by monitoring currency risk in real time and enabling firms to hedge this risk dynamically and automatically. It therefore spares companies that handle high volumes of currency transactions from having to manually complete operations on an individual basis in order to protect against FX risk. The result is an improvement in their currency management and internal efficiency.
“For a travel firm operating on the global market, currency fluctuation makes daily planning more complicated. With Kantox's Dynamic Hedging product, we are able to fully monitor the risk related to exchange rate fluctuations and to execute hedging operations automatically. This way, we can optimise cross-border transactions with minimum effort,” said Jasmin Taylor, the Managing Director of JT Touristik.
“Dynamic Hedging has seen exponential growth, so we expect to be managing $1 billion through this solution in 2017,” added Gelis.
Kantox Dynamic Hedging is a solution geared towards companies that regularly make transactions in multiple currencies, allowing them to both automate and centralise the management of their multi-currency exposure. It is the ideal fit for such firms operating in sectors like travel and e-commerce, among others.
Dynamic Hedging offers continuous, real-time monitoring of the exchange rate in every currency and execution of transactions in order to take advantage of market movements. Further benefits include time savings and increased security, because transactions, while automatically completed, are made according to clearly defined rules and with total visibility.