Integrated, Not Outsourced
The programme is run inside the client organisation rather than delivered to it. Three teams operate under a single mandate:
a joint committee that sets policy, a joint execution team that runs the book, and an independent audit function that reviews both.
Independence and Integration are not in conflict.
One governs how we price. The other governs how we work.
Where Policy Is Set and Authorised
The committee reviews and adjusts the programme structure each week.
Hedge Ratios : Reviewed and adjusted weekly against current conditions and the agreed target.
Instrument Selection : The instrument mix is rebalanced as the cost of optionality changes.
Mandate Compliance : Programme guidelines are checked against the live position.
Forward View: Known exposures and scheduled events are discussed before they arrive rather than after.
Who Runs the Book Day to Day
The execution team operates the programme day to day, monitoring the position and placing authorised trades.
Continuous Coverage : The team operates while global markets are open, from the Asian session through to New York.
Analysis : Hedge performance, margin and collateral positions, stress testing, scenario analysis and cashflow projection.
Counterparty Limits : Exposure to each counterparty is monitored and controlled against agreed limits.
Reporting : Trades, hedge levels and exposures are available to the client at any time, not on a reporting cycle.
Board Reporting : Regular presentation to the board and the risk management committee.
Records : Trade authorisations and records filed for audit.
Independent Review of the Hedge Programme
Separate from the committee and the execution team, this function reviews the programme against its mandate.
Governance : The function tests whether the programme's governance holds not only today but across the life of the mandate.
Separation : Because it sits outside the risk and execution teams, its assessment of transactions and reporting is not made by the people who produced it.