Caterpillar's treasury chooses SuperDerivatives for its FX options business
Caterpillar Inc, the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines, is the latest in a growing list of prestigious corporations to roll out SuperDerivatives, the benchmark foreign exchange (FX) option pricing system.
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"We are very pleased that Caterpillar has selected SuperDerivatives. It is very encouraging for us and for the FX options community to see that more and more corporations are improving their pricing and risk management capabilities. By providing the most accurate prices and Greeks, SuperDerivatives provides corporations with the same powerful tools as those available to banks," says SuperDerivatives' chief executive David Gershon.
Commenting on the decision to select SuperDerivatives, S D Kanyr, Risk Manager at Caterpillar, says: "I wanted a web-based pricing system, that was easy to use and which provided accurate options pricing so that we could use it for developing our FX hedging strategies. SuperDerivatives meets those criteria fully."
Gershon adds: "SuperDerivatives is successfully penetrating the corporate sector. It has always been our belief that when corporations obtain greater price transparency, they will increase their use of FX options for hedging. Over the last year it is probably no coincidence that at the same time as our corporate client list has grown, banks have reported bigger and bigger flows coming from the buyside sector."
He concluded: "SuperDerivatives helps corporations not only reach a higher level of efficiency in planning their hedges, but also to comply with accounting regulations, such as FAS133 and IAS 39. These require realistic mark-to-market revaluations. No other system prices as many options on as many currencies as accurately as SuperDerivatives."
Among other large corporations that use the SuperDerivatives system are IBM, Ford, Xerox and Alcatel.