Assure Hedge Limited
Products: EZFX, X-Hedge, API, Voice to Desk
Overview: For the average SME, hedging is difficult to organise, time consuming, expensive and ultimately not seen as an essential component of their business. This may result in FX losses. Assure Hedge enables companies to protect against currency risk, partnering with UK and European brokers who have access to its EZFX platform. Access enables brokers to produce MiFID-compliant term sheets, setting out various hedging strategies, within minutes of an enquiry being made. Clients of the brokers can then choose a product/hedging strategy that best serves their needs, and then execute the trade using the embedded proceed facility within the term sheet.
From a broker perspective, Assure Hedge reduces the regulatory burden as it is MiFID-regulated and acts as principal in the transaction. It does all the onboarding of the client, ensuring KYC and AML requirements are met, and can also facilitate third party payments under its PSD2 regulatory status. In addition to removing all the back-office processes for brokers, Assure Hedge can also provide initial margin facilities for qualifying corporates.
To this end, Dublin-based Assure Hedge has recently completed the signing of a £9m facility with Carrig Glen Investments. “The deal gives the company sufficient funding to grow its trading operations,” CEO, Barry McCarthy, told The Irish Times. Assure Hedge has had two successful fundraising rounds over the past year, raising more than €4m in equity.
The firm’s product range will be increased by its X hedge platform (available Q1 2021) which will offer clients a self–service hedging platform. If customers prefer, it also provides a ‘voice-to-dealer’ alternative where specific trading and related hedging option prices can be provided.
Assure Hedge announced in June 2021 that it had closed a €5m funding round to support its plans for rapid expansion. The funds will be used to hire new staff, and to invest in new product development and channels to market. The fundraising raises the valuation of the firm to €30m.
Clients: Primarily SMEs
Active region(s): UK and Europe (offices in Dublin, London and Portugal)
Partners: Not Applicable
Ownership: Privately Owned
Email: [email protected]
Phone: 0044 20 8068 7318
TMI view: Volatility arising from the Covid-19 crisis has served to underline the importance of considering FX hedging for all overseas traders. But managing FX hedges can be a worry for those without experience or knowledge, which can lead to losses or unnecessary costs if not executed well. This platform aims to make the process of hedging, and all its administration, a lot easier.
Verdict: A provider with an active development roadmap and solid backing. A valuable contribution to cross-border trade at the SME end of the spectrum.