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Member question: “We have started a big FX global project and we would like to discuss other setups where you leverage FXall as a trading platform with full integration to a TMS and payments solution and with a global footprint for trading.
- “Does anyone have a FX trading desk and systems setup similar to ours (FXall, Kyriba and trading teams in different regions—APAC, EMEA and AMER)?”
Peer answer 1: “We don’t have exactly the same setup as you described but I’m sure we have a lot to share/exchange.
“High level setup:
- “Corporate is consolidating and hedging all ‘exposures’:
- Balance sheet/transaction difference—net position is being hedged, about 100%.
- Earnings/guidance—partially hedged based on a statistical model (earnings at risk, efficient frontier, economic hedge).
- We also used to have interest rate swaps, cross-currency swaps and net investment hedging (hedge accounting).
- Three regional hubs convert FX for operational purposes (up to spot), mostly by the IHBs and supported by intercompany loans/deposits.
- Trading is being done through Bloomberg (corporate/derivatives) and 360T (regions/up to spot).
- Trades go through straight-through processing to our TMS (Quantum-FIS).
- Matching is done via Finastra.
- Corporate’s policy is in place, back office is by our global business services, and we have ISDAs and CSAs with our trading partners.”
Peer answer 2: “We use both FXall and Kyriba TMS and FX trading is fully centralized with the capital markets team in the US. I also have experience [at a previous company] where there were several trading desks across the globe using 360T, with integration into different treasury and risk management systems (Quantum/SunGard, Wallstreet Suite).”