Pyxis undertakes the outsourced treasury operation’s activities for corporates which are short staffed or need help in managing the treasury in a better manner. As a part of this activity Pyxis

• helps corporate treasuries in defining and/or re-engineering their risk management / treasury policies
• evaluate / enhance the hedging strategies
• manage exposure and covers
• manage the day to day operations of the treasury

As a part of this, Pyxis helps clients implement Risk Management Framework which eliminate the uncertainty of Cash flows due to fluctuations in foreign currencies. If the client already has a risk management framework, Pyxis reviews the framework and suggest any enhancements if required. Pyxis helps client understand the risk and manage the risk through hedging program and measure the performance of the treasury.

Following are the steps followed by Pyxis for total outsourced activities of the corporate treasury –

Step 1.
Document / Review of Risk Management Policy and Guidelines.

• Review / Design a hedging strategy which provides guidelines for minimum hedging, time limits for hedging, instruments allowed for hedging such as forwards, options etc
• identify the exposure depending on the confidence level for various time-periods
• Define the Benchmark level, budget rate and stop loss. This will be a one time activity but will need fine tuning on periodic basis.

Step 2.
Development of an MS Excel based tool.

This tool will be used to monitor performance of hedges, generate report to provide a snap-shot of current hedges for various cash flows and identify the gap in actual hedges and benchmark to be used to calculate profit & loss. The tool development will be a one time activity while changes resulting from modifications in Risk Management Policies will have to be incorporated in it from time to time. This hedging program will then be migrated to Ionpot Exposure Manager and will be used for generating the reports etc

Step 3.
Daily operations and management

• Identify future cash flows with associated confidence level
• Find the hedging requirements using the tool
• Input the hedging strategy in the system with respective benchmark rate
• Generate Daily reports .