The current political climate and tensions across the globe tell us that a lot of uncertainty is forecast, and with uncertainty comes volatility - particularly in the financial world. In addition to this, industry regulators have become increasingly more scrutinous, resulting in a much greater need for cost-reducing strategies without putting businesses on the line.
In essence, risk management is fast becoming a mandatory requirement, rather than a benefit that some firms choose to take on. Without it, e-FX firms are putting themselves under enormous pressure, exposing vulnerabilities that could be easily resolved with the use of effective software that is much more affordable than most would initially have thought.
MahiFX’s reputation in the FX space is fast becoming synonymous with risk management, providing innovative FX technology that is both efficient and cost-effective for its clients. Having now added full Financial Conduct Authority approval to their list of regulators (Australian Securities and Investments Commission & the New Zealand Financial Markets Authority), MahiFX are in a position to offer technology and services that are entirely compliant with current regulations.
The Mahi Effect
Current clients have proven that MahiFX’s products do exactly what they say on the tin.
Prior to installation one client was a pure STP broker, lacking any ability to monetise the bid/offer spread. Post implementation, the ‘Mahi Effect’ is clearly evident with an increase in yield of $53 per million all derived from the bid/offer spread that was previously paid away, utilising only a modest amount of risk and with around $10k of one day 95% VaR. MahiFX have not only significantly improved the business model and profits of this client, but have also provided them with the ability to run their own risk and earn revenue from their bid/offer spread. Other clients have seen their weekly PnL increased by ten times, and yearly profits have skyrocketed.
Recognising that no two clients are exactly the same has played an important role during the creation of MahiFX’s products. Flexibility is key, and this is reflected in the adaptability of products such as MFX Compass, which can be totally tailored to what individual clients require of it; prioritising their business goals. Clients are able to choose whatever risk limits they are comfortable with, through a plethora of risk tools that are entirely adjustable. Options of which type of hedging clients would like are also available, along with the ability to identify where they would like to pass on risk. Alongside all of MahiFX’s products is the concept of a personalised partnership with each client. The MahiFX analytics team personally monitor product performance, and ensure that everything is fully optimised to manage risk as smoothly as possible.
MahiFX’s detailed analytics dashboard allows clients to continuously monitor their business performance from a range of levels, whether that’s a quick snapshot of current positions, or something with a little more detail. Alongside this, clients are also fully supported by MahiFX’s personal analytics teams, who are continuously observing and fine tuning systems to ensure that clients are getting optimal results.
Leading the way
With appropriate risk management and high end technology being more prominent than ever, MahiFX are leading the way with innovative solutions to some of the biggest issues currently faced by the industry, creating some much needed disruption to an area of business that has remained largely unchanged for several decades now. Alex Ridgers, Head of Analytics at MahiFX, has said, “When I look at the FX industry, apart from market conditions, I don’t really see that much as changed. MahiFX is here to bring the FX Industry - and indeed our clients - into the information era. In a time of great regulatory change where risk is being put under a lot more scrutiny, we are here to make sure our clients can squeeze every single last drop of revenue and yield from their FX flow.”