ITG » Topics » Economic Hedges

This excerpt taken from the ITG 10-Q filed May 8, 2009.

Economic Hedges

 

We enter into rolling three month forward contracts to sell Euros and buy British Pounds to economically hedge against the risk of currency movements on Euro deposits we hold in banks across Europe for equity trade settlement. When a contract matures, an assessment is made as to whether or not the contract value needs to be amended prior to rolling it over, to ensure continued economic hedge effectiveness. As we have not designated these contracts as hedges under FAS 133, the changes to their fair value are recognized immediately in earnings.  Our counterparty agreements do not contain any credit-risk related contingent features.

 

These excerpts taken from the ITG 10-K filed Mar 2, 2009.

Economic Hedges

        We enter into rolling three month forward contracts to sell Euros and buy British Pounds to economically hedge against currency movements on Euro deposits we hold in banks across Europe for equity trade settlement. The notional amounts of the contracts are adjusted on the rollover date if necessary. As we have not designated these contracts as hedges under FAS 133, the changes to their fair values are recognized immediately in earnings.

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INVESTMENT TECHNOLOGY GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Economic Hedges

        We enter into rolling three month forward contracts to sell Euros and buy British Pounds to economically hedge against currency movements on Euro deposits we hold in banks across Europe for equity trade settlement. The notional amounts of the contracts are adjusted on the rollover date if necessary. As we have not designated these contracts as hedges under FAS 133, the changes to their fair values are recognized immediately in earnings.

73


Table of Contents


INVESTMENT TECHNOLOGY GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Economic Hedges



        We enter into rolling three month forward contracts to sell Euros and buy British Pounds to economically hedge against currency
movements on Euro deposits we hold in banks across Europe for equity trade settlement. The notional amounts of the contracts are adjusted on the rollover date if necessary. As we have not designated
these contracts as hedges under FAS 133, the changes to their fair values are recognized immediately in earnings.



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INVESTMENT TECHNOLOGY GROUP, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)




This excerpt taken from the ITG 10-Q filed Nov 7, 2008.

Economic  Hedges

 

We enter into rolling three month forward contracts to sell Euros and buy British Pounds to economically hedge against currency movements on Euro deposits we hold in banks across Europe for equity trade settlement.  The notional amounts of the contracts are adjusted on the rollover date if necessary.  As we have not designated these contracts as hedges under FAS 133, the changes to their fair values are recognized immediately in earnings.

 

This excerpt taken from the ITG 10-Q filed Aug 7, 2008.

Economic  Hedges

 

We enter into rolling three month forward contracts to sell Euros and buy British Pounds to economically hedge against currency movements on Euro deposits we hold in banks across Europe for equity trade settlement.  The notional amounts of the contracts are adjusted on the rollover date if necessary.  As we have not designated these contracts as hedges under FAS 133, the changes to their fair values are recognized immediately in earnings.

 

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