FXTalking Shop

Talking Shop: Comparing FX Trading Setups

By January 5, 2023No Comments

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses:  [email protected].

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:

  1. “Corporate is consolidating and hedging all ‘exposures’:
    1. Balance sheet/transaction difference—net position is being hedged, about 100%.
    2. Earnings/guidance—partially hedged based on a statistical model (earnings at risk, efficient frontier, economic hedge).
    3. We also used to have interest rate swaps, cross-currency swaps and net investment hedging (hedge accounting).
  2. Three regional hubs convert FX for operational purposes (up to spot), mostly by the IHBs and supported by intercompany loans/deposits.
  3. Trading is being done through Bloomberg (corporate/derivatives) and 360T (regions/up to spot).
  4. Trades go through straight-through processing to our TMS (Quantum-FIS).
  5. Matching is done via Finastra.
  6. 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).”

Justin Jones

Author Justin Jones

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