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Foreign exchange

Currency overlay

Automated FX hedging for institutional investors

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How currency overlay could help

Currency Overlay is NatWest’s passive rules-based FX hedging solution, tailored for institutional investors and asset managers with global exposures. It automates the full hedging lifecycle - from data capture and exposure calculation to execution and reporting - delivering a seamless, policy-aligned approach to managing currency risk. With built-in transparency, real-time dashboards, and integrated reconciliation tools, it supports operational efficiency and robust oversight.

By automating complex FX hedging workflows, Currency Overlay helps reduce manual effort, mitigate operational risk, and improve governance. It enables clients to maintain alignment with internal policies while gaining greater visibility and control over hedge performance. The result is a scalable, cost-effective solution that supports compliance and enhances confidence in managing currency exposures across diverse portfolios.

Currency overlay solutions

Define your hedging strategy

Customise a passive FX hedging program aligned to your portfolio, governance framework, and risk parameters - with full support from NatWest during design and onboarding.

Automate hedge determination

FX exposures are calculated using your defined rules, with hedge profiles reviewed and automatically executed by NatWest.

Integrate with data providers

Seamlessly connect custodians and fund administrators to enable timely, accurate, and automated exposure tracking across portfolios.

Monitor and report

Gain real-time visibility into hedge performance and costs, with post-trade reporting and reconciliation tools that support compliance and oversight.

Benefits

End-to-end automation

Fully automates the FX hedging process - from data capture to trade execution - reducing operational risk and freeing up internal resources.

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Policy alignment and transparency

Executes trades systematically in line with your governance framework, with real-time dashboards and post-trade reports offering full visibility into pricing, performance, and compliance.

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Scalable efficiency

Designed to scale across portfolios of any size, Currency Overlay integrates with your existing infrastructure to deliver efficient and cost-effective FX hedging.

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