january 2012 the hedge engine™. 1 about sceptre sceptre is a technology company based in central...
TRANSCRIPT
January 2012
The Hedge Engine™
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About Sceptre
Sceptre is a technology company based in Central Londonwith offices in Cambridge, Bournemouth and Chichester.
We specialize in technology solutions for:
• Foreign Exchange• Global Payments• Treasury Systems• Financial Certainty
Sceptre’s technology team have developed and advised on systems for:
• ABN AMRO• BOEING • BRITISH TELECOM• ENETT• ISLAMIC BANK OF BRITAIN• KEY KAA• MASTERCARD• MF GLOBAL• MORRISONS• NOKIA• VISA• WORLDPAY• BRITISH BODYGUARD ASSOCIATION
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Hedging & Certainty
Hedging began as a necessary instrument in the agricultural sector where a farmer needed price certainty for the sale of his crop before he risked the cost of seed and labour.
From these rural beginnings hedging is now a foundation for fluctuating markets such as commodity trading, metals, gas and complicated financial instruments.
The Hedge Engine™ is a unique and complete solution providing foreign currency rate certainty particularly for cross border small and micro payments.
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The Hedge Engine™ - Introduction
The Hedge Engine™ = Foreign Exchange Certainty
The Hedge Engine™ is a combination of technology and proven financial tools providing:
• Automated hedging against foreign currency movements/loses 24/7, even at the weekends
• Allows the user to receive and make payments in 27 currency pairs and all crosses
• Provides full treasury, auditing and reporting functions
• Allows payments to be taken in one currency and settled in another
• Provides payment pricing at a future date (up to three months) fixed at the time of initial transaction
• The Hedge Engine™ API which integrates into the user's existing back office software
• Reduction in foreign exchange transaction charges
• Generation of profit from the foreign exchange component of business
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•
The Hedge Engine™ = Foreign Exchange Certainty
The Hedge Engine™ is a combination of technology and proven financial tools providing:
• Automated hedging against foreign currency movements/loses 24/7, even at the weekends
• Allows the user to receive and make payments in 27 currency pairs and all crosses
• Provides full treasury, auditing and reporting functions
• Allows payments to be taken in one currency and settled in another
• Provides payment pricing at a future date (up to three months) fixed at the time of initial transaction
• The Hedge Engine™ API which integrates into the user's existing back office software
• Reduction in foreign exchange transaction charges
• Generation of profit from the foreign exchange component of business
•
•
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The Hedge Engine™ - Capability
The Hedge Engine™ - key success factors:
• Hedges across the futures and derivatives markets to ensure net currency movement is always zero
• Online treasury tool provides daily reconciliation – only moving currency mismatches
• Capable of 100 trades/second (8.6 million/day)
• Scalable system – requires only hardware addition
• Defined profit share – Real time pricing with agreed margin added to define profit share
• Fast Integration - .Net systems 6-8 weeks (typically 2 persons required for integration)
• The Hedge Engine™ is supported 24/7
• Industry standard settlement terms of T+1 for majors and T+2 for exotics
•
•
The Hedge Engine™ - key success factors:
• Hedges across the futures and derivatives markets to ensure net currency movement is always zero
• Online treasury tool provides daily reconciliation – only moving currency mismatches
• Capable of 100 trades/second (8.6 million/day)
• Scalable system – requires only hardware addition
• Defined profit share – Real time pricing with agreed margin added to define profit share
• Fast Integration - .Net systems 6-8 weeks (typically 2 persons required for integration)
• The Hedge Engine™ is supported 24/7
• Industry standard settlement terms of T+1 for majors and T+2 for exotics
•
•
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A large travel agency based in the US needs a budget
certainty for the cross-border payments when booking
hotels and airline tickets…
Partnering with Enett, a Travelport/Blackstone Group
company, we have provided a virtual credit card and
Hedge Engine solution. The travel agency can now
commit to payments 3 months in advance with a
certainty on pricing
Example 1: Travel Agencies
Industry Examples
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A UK based payments company needed certainty
on foreign exchange for a basket of currencies to
minimise currency risk and to cover open positions
over the weekend…
The Hedge Engine™ was integrated into their back
office systems and provides a guaranteed rate on
$20 Million of micro payments per month.
Example 2: Payment Solution Providers
Industry Examples
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Contact & Regulation
Sceptre Limited is a Small Payment Institution registered with the Financial Services Authority no. 540558
Sceptre makes no representation or warranty that the information contained in this presentation is accurate, complete, fair or correct or that any proposal or claim within is appropriate for any person and it should not be relied on as such. All information is subject to change without notice. Nothing herein shall be construed as a recommendation or solicitation to purchase or sell any financial product or security or as an official confirmation of any transaction. This presentation is produced for illustrative purposes only and is not to be relied upon for any other reason, nor should it be considered as a solicitation.
Sceptre Limited is Registered in England & Wales No. 16906094HM Revenue & Customs Certificate of Registration for AML Regs No. 12610333
For further information please contact:
Tony Hood
2nd Floor, 70 Gracechurch Street, London, EC3V 0XL
Telephone: +44 (0)20 7617 7822
Mobile: +44 (0)7841 997 832
Email: [email protected]
END OF PRESENTATION
The Hedge Engine™