Every client faces exchange rate risk as soon as they purchase assets denominated in a currency that is different from their reporting currency. This risk should not be underestimated, as an unfavourable fluctuation in the currency may have a significant impact on the performance of initial investments in foreign assets. In some cases, the value of the currency may fall more than the value of the asset purchased, resulting in a loss when the asset trends more favourably.

There are several strategies to deal with this situation. Ignoring the currency risk is not the best one, unless you want to apply a diversification strategy. No hedging effectively means taking a position on the currency.

Our offers to help you hedge your forex risk

CIC Market Solutions teams assist each client in managing the foreign exchange risk on 30 deliverable currencies, as well as a dozen non-deliverable currencies, and intervene on several platforms: Bloomberg (FXGO), FXALL and 360T-Cash exchange: Exchange of currencies at a negotiated price, usually at working J+2.

  • Change futures: exchange of currency at a negotiated price on a specified date.
  • Exchange swap: exchange of currency at a given price on a specified date, followed by an exchange opposite another price and at a later date.
  • Not available forward (NDF): instrument to fix a conversion price at a specified date for a currency that is not available. At maturity, the difference between the recorded price and the negotiated price is exchanged.
  • Call or Put.

Support adapted to your hedging needs

CIC Market Solutions' teams offer a range of solutions that enable you to hedge these foreign exchange risks under the best possible conditions. More broadly, they meet all your needs for forward financial instruments on both interest rates and currencies, as well as for collateralised refinancing solutions.

Our teams, which have been active in this field for several years, support each client by providing quality advice, personalised follow-through, and perfect execution of orders.

CIC Market Solutions' teams operate on several forex platforms: Bloomberg (FXGO), FXALL, and 360T.

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