Corporate Treasurers

Why Do FX Execution Costs Matter to the Treasurer?

  • FX Trading Costs hit the company’s bottom line – For example, exchanging €1,000,000 to receive Dollars at a EUR/USD rate of 1.2500 when the true interbank rate was 1.2550 just cost your company $5,000. This impacts your bottom line, but you will never receive a bill.
  • Currency Hedges are less effective.
  • Managing your banking relationships – Have you ever wondered how much your banks made converting your currencies last year? You never received a bill, but the costs were substantial. Without knowing currency trading costs, an accurate cost / benefit analysis cannot be performed on your banking relationship.

Establishing Best Practices in FX Trade Execution

Leverage the expertise of an independent consultant working directly with your team, and tap into decades of currency-market insider knowledge. Learn techniques to improve execution quality, boost performance, and lower currency transaction costs.

  • FX Transaction Cost Analysis (FX TCA) is the first step toward establishing best practices for transacting in the currency market.
  • What is it that firms with the lowest FX trading costs do to achieve them? What matters most in order to lower FX transaction costs? We have the answers.
  • Learn several hidden markups commonly embedded in spot, swaps, forwards, and options that many investors are unaware of.
  • Gain insight to electronic trading developments and price-discovery platforms that show interbank-market rates in real time.
  • Add new execution methods that will lower trading costs, improve transparency, and add to liquidity with your existing bank network without adding any new infrastructure.
  • Build a process to break down the walls that banks construct to protect large markups on “restricted” currency trades (KRW, BRL, INR, etc.).