On the first score, DAST, the Derivatives Application Sales Tool, suggests the appropriate risk solutions and thus enhances productivity. DAST provides historical analysis on FX option products, enabling comparison with simple outright forward FX contracts. It also incorporates a hedge effectiveness model that allows customers to determine whether their hedges will meet the ‘effectiveness test’.
Research from Greenwich Associates shows that 32% of corporates and institutions view HSBC as their leading counterparty for foreign exchange. This is more than 50% greater than the next most favoured institution.
Tarun Kataria, head of HSBC sales for Asia Pacific, says: “The Asian FX business is about ideas, scale and execution. Ideas involve understanding your customers, knowing their tolerance for risk and then providing appropriate investment and/or hedging solutions. That’s the only way we’re going to out-value-add the competition. Over the past decade, margins have been compressed dramatically, underscoring the importance of scale,” he says.
