FX hedging service provider Assure Hedge has announced that it has agreed terms with Carrig Glen Investments (CGI), whereby CGI will provide up to a £9m margin finance facility for clients of Assure Hedge at a utilisation cost of 10% per annum. Under the terms of the arrangements, CGI will be entitled to subscribe for up to 1,500 shares in Assure Hedge at a price of €1,017 per share, which represents approximately 5% of the issued share capital of the firm.
Assure Hedge’s model is to digitally embed its platform into channel resellers such as FX brokers and banks to enable them to make available a full range of FX hedging products without the necessity of having to invest in technology or front and back office overhead.
The margin finance facility is to fund initial margin deposits, which Assure Hedge, as a MiFID-approved FX services provider, is required to place with its liquidity providers for forward FX transactions. By securing the funding the firm will seek to further expand its business in the FX derivatives space especially.
Assure Hedge recently launched EZFX Broker, which is powered by some of the seven API’s that currently sits on the platform. This solution enables non-specialist dealers within FX brokerage firms to send a term sheet to their client within minutes setting out the Assure Hedge options-based hedging solutions best suited for the client’s particular FX exposure in an easy to understand format.