C8 Launches Cash Management Tool

C8 Technologies, an FX advisory firm founded by former Blue Crest Capital Management partners Mattias Eriksson and Ebrahim Kasenally, has added a cash management tool to its core platform C8 Hedge, managed by Jonathan Webb.

Observing that businesses typically hold cash balances in multiple currencies, for upcoming payments and on a precautionary basis, C8 says using the same underlying FX models that generate its recommended FX hedge ratios, the firm can provide guidance on the best currency or currencies to maintain excess cash balances in. 

C8 Hedge is largely aimed at corporates and asset managers, and the firm reiterates these hold cash balances, to cover upcoming outgoings and, in reserve, an excess balance, for example, in case of fund redemption.  “A corporate or asset manager will build excess balances as they randomly accrue in various currency accounts, we propose managing these cash balances in a more systematic way,” C8 explains. 

C8 Hedge is designed to add value to the FX hedging process by modelling key drivers of FX markets: fundamental, trend, carry and value, but the firm argues these key drivers can be just as easily used to optimise cash balances. To do this, it can provide data on where to hold excess cash in currencies that are likely to appreciate on a total return basis (combining spot movement and interest carry).