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Bondford is a founder-led foreign exchange (FX) specialist, focused on delivering a differentiated currency risk management service to corporates who have a material FX risk.
The company is developing a unique, cloud-based software-as-a-service (SaaS) tool that automates the design, execution and administration of highly effective cash-flow and balance sheet hedging programs.
By combining our tools in a single, integrated, end-to-end solution, we help will help our clients to meet and exceed their risk management objectives, optimize financial performance, reduce workload and save money.
Bondford’s cloud-based solution obviates the need for multiple, sub-optimal and costly FX vendors. We have engineered a logical, cyclical risk management process where data moves easily and securely between each module. Bondford does not require a complex on-boarding process or system integration, with clients up-and-running in just 30 minutes from subscription.
The OTC FX market is infamous for its obfuscation and lack of price transparency. Competitive exchange rates are easily negotiated but hard to maintain, with counter-parties well-known to widen their spreads over time to increase profitability.
Bondford has developed a transaction cost analysis (TCA) tool which helps our customers to negotiate improved FX margin terms with their counter-parties. All future FX transactions are monitored in real-time, ensuring consistency and adherence to newly agreed terms. Unexpected margin increases are automatically flagged and clients are notified via SMS and e-mail instantaneously, enabling them to take immediate action. Our data analytics drives smarter decision making about FX services and supports best execution policy frameworks.
Bondford’s EMS system will provide an aggregated view of the best available quotes across all your counter-parties. Our platform is dealer agnostic and unlike other multi-dealer platforms, we do not charge banks or liquidity providers any fees to offer quotations to our customers. This ensures our clients receive direct market access pricing and the most competitive execution.
Managing risk begins with measuring it. Bondford’s platform provides the tools to identify which exposures create a material risk to your cash-flow, earnings and P&L. You can then quantify, in line with your stated hedge metrics and benchmarks, how well your existing strategy is working to mitigate that risk and where it needs improving.
Effective strategies and objective processes are essential to meet risk management objectives. Ad hoc, subjective hedging activities are subject to cognitive and emotional biases (behavioral finance) and do not produce optimal results. Bondford’s comprehensive suite of ‘rules based’ hedging programs use proven, mathematical processes to achieve maximum risk reduction at the minimum cost and perform well irrespective of market conditions.
Leveraging off our back-testing and Monte Carlo simulation capabilities, Bondford is able to offer informative, graphical displays comparing the efficacy of any number of hedge structures. This is particularly useful for corporate treasury teams evaluating the historic or expected performance of a variety of FX options structures, as well as different types of rolling or layered hedging programs.
Often overlooked and misunderstood, the accounting requirements of IFRS and FASB can be complex. Bondford’s accounting module provides the basics; remeasurement, hedge effectiveness and hedge inception documentation.
• Objective, ‘rules based’ hedging. No guessing or emotional attachment to exchange rates which leads to inconsistent, sub-optimal results.
• Our SaaS enables quick, simple implementation, then monitoring, of proven, highly effective cash-flow hedging programs which can reduce volatility by as much as 80%.
• Pioneering, forward looking, balance sheet hedging program which is proven to eliminate FX re-measurement risk.
• Integrated cash-flow and balance sheet hedging results in zero over or under hedged exposures.
• Efficiency frontier tool can reduce hedge costs by over 60%.
• All hedging programs are IFRS/FASB compliant.
• Advanced tools to help you fine tune and optimize your hedges (back-testing & simulations) resulting in better performance at a reduced cost.
• Single platform for all your FX management – removes the need to manage relationships with multiple FX vendors.
• Straight-through-processing (STP) across all modules. No keying errors, increased speed.
• Forecast cash-flow and net monetary assets data updated just once per month.
• Reduced workload enables you to focus on core business and other priorities.
• All inclusive, transparent and affordable fee structure.
• Know the exact cost to the business in managing FX and budget accordingly.
• Negates the need to pay additional fees to banks, brokers, advisors or accountants, in turn generating significant ROI.
Bondford’s pricing options cater to corporates of all sizes. For those with sufficient budgets and competitive FX pricing available through their existing banks, non-banks or multi-dealer platforms, option 1 may be preferable. For those with limited budgets and noncompetitive FX pricing, options 2&3 may be preferable as subscription fees are paid for through brokerage commissions with leading bank and non-bank FX providers.
Even for those with ample budgets and competitive FX pricing, options 2&3 can still be attractive as execution costs are typically in-line with, or more competitive than, client’s existing arrangements and there is no requirement to pay a subscription fee to Bondford for access to our platform. In other words, clients can often pay less for more, with execution costs as low as 0.04% / 4bps.
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Whitepaper
Published: 14 July 2018
Whitepaper
Published: 14 July 2018
Whitepaper
Published: 14 July 2018
