Tag: Derivatives

  • FX defs look to calculation agents for close-out rates

    FX defs look to calculation agents for close-out rates


    Calculation agents will play a bigger role under the International Swaps and Derivatives Association’s new foreign exchange definitions, while the definition of “impossibility” in disruption events will also be updated.

    Isda is updating its rule book for trading FX derivatives, after the Russian invasion of Ukraine in 2022 exposed flaws around the management of disruption events and disrupted price sources.

    Deepak Sitlani, a partner in the derivatives and structured products group at law firm

    You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

    Copyright Infopro Digital Limited. All rights reserved.

    You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.

    If you would like to purchase additional rights please email info@fx-markets.com



    Source link

  • Does no-hedge strategy stack up for mag seven mavericks?

    Does no-hedge strategy stack up for mag seven mavericks?

















































    Does no-hedge strategy stack up for mag seven mavericks? – FX Markets



    At Amazon, Meta and Tesla, the lack of FX hedging might raise eyebrows, but isn’t necessarily a losing technique


    The so-called magnificent seven – the seven largest US tech companies that famously make up more than a third of the S&P 500 by market cap – are among the world’s largest firms. They also have some of the greatest geographical distributions – in some cases operating in over 100 countries.

    Yet filings for these tech giants show that three of them – Amazon, Meta and Tesla – choose not to hedge their day-to-day foreign exchange exposures. They reveal no holdings of offsetting FX derivatives

    You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

    Copyright Infopro Digital Limited. All rights reserved.

    You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.

    If you would like to purchase additional rights please email info@fx-markets.com

    Sorry, our subscription options are not loading right now

    Please try again later. Get in touch with our customer services team if this issue persists.

    New to FX Markets? View our subscription options

    Most read articles loading…

    Back to Top



    Source link

  • Amazon, Meta and Tesla reject FX hedging

    Amazon, Meta and Tesla reject FX hedging

















































    Amazon, Meta and Tesla reject FX hedging – FX Markets






    FX Markets study shows tech giants don’t hedge day-to-day exposures


    Tech-titans-shun-FX-hedging

    Amazon, Meta and Tesla – three of the so-called magnificent seven tech firms that drive US stock market performance – decline to hedge their day-to-day foreign exchange exposures. So concludes a study by FX Markets of the firms’ quarterly filings over the past five years.

    Corporates operating in dozens of countries typically hedge the FX risk from their foreign revenues and expenses with derivatives. But a study of the three companies’ filings shows no evidence of any FX hedging activity. What’s

    You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

    Copyright Infopro Digital Limited. All rights reserved.

    You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.

    If you would like to purchase additional rights please email info@fx-markets.com

    Sorry, our subscription options are not loading right now

    Please try again later. Get in touch with our customer services team if this issue persists.

    New to FX Markets? View our subscription options

    Most read articles loading…

    Back to Top



    Source link