Swedish telecommunications giant Ericsson has joined the rapidly growing list of corporations that license SD-FX, the currency option market's benchmark pricing system from SuperDerivatives.
"We are continuing to see very good demand for our products from the buy side," says Daniel Kadim, Sales Director of SuperDerivatives. "We are especially pleased that Ericsson has decided to use SD-FX, because the company has such a good reputation in the foreign exchange (FX) market. Its treasury department is regarded as being one of the most advanced in the corporate sector," he adds.
"More and more buyside institutions are realizing the importance of having ready access to independent and accurate market prices for all options in all currency pairs. We have added many tools to SD-FX that specifically help the corporate sector in their hedging needs and management of the revaluation process," says Kadim.
"Accurate revals are obviously a crucial requirement in the management of currency risk and they are also something that are becoming required by accounting standards. The ability to help corporations comply with these standard is just one reason why SD-FX is regarded by so many of its users as indispensable," he concludes.
According to Stefan Daberius, Head of Markets at Ericsson Treasury Services, the company is an active user of currency options, including exotics. "SD-FX is a very impressive system. It is extremely reliable, both in terms of its pricing and its availability," he says.
"Since we've been using it, we have never experienced a failure in service. SD-FX helps us to devise the sometimes complex strategies we want to use to manage the company's FX risk; it also helps us accurately risk manage any positions we decide to implement," adds Daberius.
Among the many corporate treasury departments using SD-FX are IBM, Alcatel, Caterpillar, Coca-Cola Amatil and Ford. The system is also used by leading accountancy firms and auditors, such as Deloitte & Touche and Ernst & Young, as well as almost every bank in the world, including central banks, which are active in currency options. SD-FX also has an increasing number of hedge funds among its customers.