Client Portal Implementation for FX Risk Management
The Client
The client is a natural gas distributor in Latin America responsible for designing, building, and operating the gas distribution system within its concession area. Its shareholders are part of a Latin American energy conglomerate with operations in Colombia, Brazil, Peru, and Guatemala.
Due to its involvement in large-scale public utility projects with a highvolume of transactions, the company had significant foreign exchangeexposure—specifically between the U.S. Dollar (USD) and the Peruvian Sol(PEN)—and needed to manage these risks effectively to protect its financialhealth.
Key Takeaways
Methodology
What Challenges Was the Company Facing?
Fragmented Workflows and Manual Processes
The treasury team managed its FX hedging process through a decentralized andinefficient workflow. There were three separate sources of USD/PEN exposure,each managed independently, making oversight difficult and reducing theaccuracy of corporate financial data.
These included:
- Short-term invoice hedging (Bloomberg FX forwards)
- Long-term invoice hedging (forward contracts executed through banks)
- Future tax payment hedging (forward contracts executed through banks)
Key Challenges:
- Fragmented Data: Information was spread across multiple spreadsheets withouta centralized source of truth.
- Manual Consolidation: Manual integration with the ERP system consumedsignificant time and increased the risk of errors.
- Limited Visibility: Mark-to-Market valuations were calculated only once permonth.
- High Accounting Workload: Treasury teams manually calculated active days,financing costs, and reconciled every transaction.
How Deaglo Solved These Challenges
The solution was the implementation of a unified, automated platform. The company needed an integrated, agile system capable of managing hedging activities and financial data in real time. Deaglo became the technology partner that transformed its foreign exchange risk management process.
The project resulted in a comprehensive platform tailored to the company's operational requirements and implemented in approximately one month (implementation time varies depending on project scope and client infrastructure).
Benefits Delivered by the Deaglo Platform
- Centralized Trade Repository: Consolidates all USD/PEN exposures into a single,reliable environment with filtering by date, contract type, and counterparty.
- Real-Time Pricing and Continuous Monitoring: Live market data enables minute-by-minute monitoring of positions. These analytics support decision-making but do not guarantee financial or operational outcomes.
- Straight-Through Processing (STP): Automatically reads Bloomberg confirmations, imports bank term sheets (notional, FX rate, maturity,counterparty), and uploads Mark-to-Market reports for automatic valuation updates.
Benefits of the Platform
- Operational Efficiency
- Immediate Visibility
- Actionable Analytics
- Simplified Collaboration
- Tailored Implementation
- Greater Strategic Focus
The results described reflect this client's experience and may vary depending on each organization's infrastructure and processes.
Results
Reduced manual work and improved operational efficiency.
- Real-Time Accounting Metrics: Automatic calculation of daily P&L,financing costs, and active days.
- Real-Time Transaction Cost Analysis (TCA): Compares executed FX rates withlive market prices to assess execution quality.
- One-Click Reporting: Exports complete datasets in formats compatible with treasury and client reporting standards.
Conclusion
This case study demonstrates how digitizing foreign exchange risk management strengthens risk oversight and improves financial reporting accuracy by replacing fragmented manual workflows.
