By Tanja Zimmermann
Photo: WavebreakMediaMicro from Adobe Stock
On June 10, 2021, the Treasury Chapter of 21strategies GmbH took place. In regular meetings of the 21executive academy we provide our clients with a broader understanding of AI, including its impact on business models and regulatory advances, and share ideas with our clients. The focus of the Treasury Chapter this time was on current developments in the field of hedging and machine learning. The experts
- Christian Held, rtrd. Head of Treasury Bayer AG
- Carsten Jäkel, Partner, Head of Global Treasury Services, EY
- Professor Yvonne Hofstetter, Honorary Professor for Digitization and Society, University of Applied Sciences Bonn-Rhine-Sieg, CEO and Co-Founder of 21strategies GmbH
- Dr. Christian Brandlhuber, CTO and Co-Founder of 21strategies GmbH
informed and discussed with the participants. The 21executive academy brings together different perspectives of our clients and provides a space for an informative dialogue.
The importance of benchmarks for hedging and machine learning
Benchmarks are not only crucial for hedging. They also provide important information for machine learning and hedge21 hedge controllers. Active hedge controllers can adapt to current market developments and thus correct previous decisions. Passive hedge controllers, on the other hand, can only increase the hedge ratio and are thus limited in their movements. Under certain circumstances, this means that potentials are forfeited. In conclusion, an active hedging strategy that exploits current market potentials can be an attractive and at the same time reliable hedging strategy, however under observation of internal process constraints and accounting rules.
New Hedge21 system version
21strategies will release a new hedge21 system version, which includes RMP 6.0, a further enhancement of the existing and demonstratedly successful version. On the technical side, additional influencing factors will be considered. This allows a more precise system awareness of the current market situation to be presented and considered by hedge21 hedge controllers. Passive hedge controllers benefit strongly from RMP 6.0. Due to a higher forecast quality of RMP 6.0, passive hedge controllers can make more profitable hedging decisions. As they cannot correct earlier decisions, their reliance on a high forecasting quality is crucial. The graphical representation of the market forecast has also been improved and makes it easier to understand how the market supposedly will develop over time. The quality improvement will be made available to all users during the course of summer 2021.
We would like to thank all participants for the exciting discussions and are already looking forward to the next Treasury Chapter. For information on other 21executive academy events, please visit our website.
About 21executive academy
21executive academy is a high-level dialogue and networking format on practical and professional topics of algorithmic decision support systems, artificial intelligence and hedging of financial market risks at the highest level exclusively for our clients and in cooperation with our partners.