Re-inventing Financial Risk Management: Hedgeblue

Aug 19, 2021
4 min read

Financial Services


AWS Lambda, AWS Fargate, Amazon ECS, Amazon ECR, Amazon S3


Amazon Web Services

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Hedgeblue is a FinTech company that focuses on providing solutions to treasuries of corporates and financial institutions in Hedge Accounting, Risk & Liquidity Management, and Valuation of Financial Instruments. Within the first year of its operations, Hedgeblue is already serving more than 10 happy customers, all large enterprises and financial institutions.

Hedgeblue’s SaaS platform allows clients to track their hedges and hedge accounting relationships easily and intuitively. Clients are able to observe changes in their economic hedges and detect deviations in hedge effectiveness. Additional features include simulations and scenario analyses. With its hedge accounting software, Hedgeblue’s hedge accounting software helped its customers realize more than $500 million positive impact on their income statements.

Hedgeblue was looking for a secure and scalable solution to develop and host their systems. They decided to take leverage of AWS capabilities that they had previous experience from earlier projects and platforms.

Due to relatively low frequency reporting cycles, Hedgeblue’s hedge accounting solution doesn’t receive high traffic by its nature, but requires complex financial calculations and scheduled jobs. They needed a solution to utilize custom-developed algorithms and run them on demand from their end-users. Platform scalability and running costs are also important elements that should be considered while designing this infrastructure to be able to sustain customer satisfaction.

Born in Cloud

Hedgeblue attended Sufle’s AWS Immersion Day session that was organized with QNBEYOND, a QNB Finansbank startup acceleration program and innovation center. After picking up insightful information about AWS Serverless Computing during the session, they reached out to Sufle with the need to build agile applications. The aim was to decrease the time to market by quickly transforming innovation to a viable product, and getting valuable early feedback from their customers.

Power of Serverless Computing

Sufle designed the infrastructure using Serverless technologies such as AWS Lambda, Amazon S3, Amazon CloudWatch Events, and AWS Fargate. The whole framework is developed as Infrastructure as Code to document changes over time and track the development of the platform.

With seamless integration of AWS Lambda and Amazon Cloudwatch Events, different algorithms and parts of the platform can be run on-demand and scheduled when needed and scale independently. Amazon S3 is used to store data that has been retrieved from third-party integrations and customers and provides infinite scalability to store the results of the algorithmic calculations.

As a result, Hedgeblue achieved a highly secure and powerful, but ultra-low-cost serverless infrastructure that is easy to manage with minimal operational effort on AWS.

Without Lambda and Fargate, Hedgeblue would have to provision and pay more for unutilized computing resources. Also, there is no additional infrastructure to scale and manage thanks to AWS’s built-in auto-scaling capabilities on-demand increase.

Sufle's design of AWS Serverless solutions reduced time to market and made it easy to deploy new features. Sufle designed and implemented a new cloud infrastructure of Hedgeblue with the following AWS Well-Architected Principals. Working together with Sufle, Hedgeblue can now focus on algorithm development and rapid global expansion without worrying about infrastructure security, scalability, reliability, performance, and cost.

Next Steps

Hedgeblue and Sufle plan on working together to scale hedge accounting and financial reporting solutions to new customers, while working on new products. Our plan is to utilize even more serverless solutions going forward to provide reliable customer-oriented solutions.

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