Numerix and Dion Global to Host Upcoming Webinar – The Return of FX TARNs: Toxic Derivatives or Useful FX Hedging Tools?

New York, NY – March 4, 2013 – Numerix (www.numerix.com), the leading provider of cross-asset analytics for derivatives valuations and risk management and partner Dion Global Solutions (www.dionglobal.com) will host a complimentary webinar on Wednesday, March 6th at 10:00 am EST where featured speaker Udi Sela, 20-year FX veteran and Vice President of Client Solutions will examine the role FX TARNs can play – or not – in FX hedging strategies.

FX TARNs (Target Accrual Redemption Notes) saw a reemergence of activity towards the end of 2012 and the beginning of 2013, with increased volumes in Europe, Asia, and the Middle East. Traded mostly by corporations and investors, they are often seen as a low cost enhanced hedge for currency exposures.

However, TARNs have been the topic of hot debate since the financial crisis. Viewed as a contributor to corporate bankruptcies and financial contagion in many emerging markets during the financial crisis, TARNs have a complex risk-reward profile that was poorly understood by – and inappropriate for – many buyers of the product pre-crisis. This leads to the question – should a company ever hedge FX rates using FX TARNs?

This webinar will cover:

•    An Introduction to TARNs

     o    TARNs’ Role in the Financial Crisis

     o    Their Reemergence Post-Crisis

•    Description of FX TARNs

     o    Comparison to Participating Forwards

     o    Typical Features

     o    Examples

     o    Sample Payoff Scenarios

•    Pros and Cons

     o    Typical Usage

     o    Understanding the Risks

•    Risk Management

This Webinar is complimentary, but registration is required as space is limited. REGISTER NOW

 
Featured Numerix Speakers:

Udi Sela, Vice President, Client Solutions Group

Udi Sela has worked in the Foreign Exchange (FX) derivatives markets for 20 years. A senior derivatives trader and trading manager at Citibank and JPMorgan, he has developed expertise in derivatives spanning both vanilla and complex FX options. For the last nine years, Sela has led product development and pre-sales functions within a range of financial software vendors.

Robert Gray, Sales, Dion Global Solutions

Robert Gray, Sales for dfferentia in Europe, has more than 20 years’ experience in the area of derivatives front office sales. An expert in financial services, with a wealth of experience in the derivatives market, he has worked across the industry with companies including S&P, Tullett Prebon, Cantor Fitzgerald and Saxo Bank.

Robert’s background has given him an unrivalled understanding of semantics and technology on the trading floor. Spearheading the European roll out of dfferentia, Dion’s the multi-asset class pricing, valuation and risk management solution for OTC derivatives; he has clear understanding of both the challenges and opportunities currently facing the industry.