# Passive currency hedging with a clear operational edge

- Link: https://www.directorstalkinterviews.com/passive-currency-hedging-with-a-clear-operational-edge/4121225724
- Published: 2025-11-12T13:41:00+00:00
- Author: Amilia Stone

Record’s passive hedging service is designed to reduce or eliminate currency risk
from foreign asset holdings where there is no expectation of return from the currency
itself.

Clients can hedge some or all of their currency risk, depending on portfolio needs.
Record also offers an enhanced version that goes further. It uses systematic signals
to identify structural pricing patterns in FX markets, adding an extra layer of 
potential return while keeping the underlying hedge intact.

Record acts purely as an agent and does not trade against clients. Its FX research
team operates independently, supporting decision‑making with market data, but without
taking positions.

Operational scale is a core part of the offer. Record holds agency ISDA agreements
with over 25 major banks, giving it flexibility to execute uncollateralised trades
and reduce settlement friction. This allows clients to manage hedges without tying
up capital or dealing with disruptive margin calls. Cash flow smoothing is also 
built in. Rather than exposing clients to large swings in settlement costs, Record
offers customised structures that reduce volatility in hedge cash flows.

_**Record plc** (LON:REC) develops bespoke, high-quality, sophisticated solutions
for institutional investors, a unique offering stemming from Record’s knowledge 
and expertise gained from its core currency hedging markets._

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