Corporate FX Solutions

Custom FX solutions for every client.

Flexible Solutions

Forwards Open and Window Drawdown.

Credit

Protect Currency Risk For up to 5 Years.

Liquidity

Large Scale Transaction and Hedging Support.

Time

Personal and Tailored Solutions.

Simple

Flexible and Effective Solutions.

Experience

Broad Expertise Managing Corporate FX Risk.

Personal Market Updates

Service Specifically for Individual Clients.

Trade Lifecycle Support

Complete and Direct Dealing Support.

Currency Exchange

We fundamentally help clients receive cost effective, secure and fast turnaround of funds when exchanging currency.

Market Orders

We Provide Execution For all Market Order Types.

We help clients develop strategies which utilise markets orders as part of a risk management strategy.

SPOT & Forward FX

We Help Clients Develop Strategies to Exchange Effectively Both for Immediate Transaction and Future Use.

Corporate FX Hedging

Contact Us

Reach out by phone or email.
We are always happy to help. There are no obligations to use our services.

Corporate FX Solutions

Corporate Foreign Exchange

If you import or export products and services, then foreign exchange fluctuations will often have a material impact on business margins and costs. There isn’t a single system or strategy which works for all companies and thus currency management and risk hedging will vary broadly from business to industry.

Sometimes companies will favour risk management products such as Forward Contracts. Alternatively, other businesses will prefer to buy and sell currency at the live market price at intervals. In all cases we can provide valuable support.

Live FX Rates

Exchanging Currencies

Buy and Sell currency at live market rates. We provide direct market pricing for all types of contracts. Spot contracts can be settled up to 2 business days from trade date. You can exchange same day contracts and turn around settlement of funds within a single business day and often within hours.

If you are buying or selling Euros, it is useful to be aware of Euro payment cut off times for banks which is around 3pm UK time. If you would like to achieve a same day exchange it is often best practice to book deals in the morning or before 12pm to ensure Euro settlement is credited within the business day.

When buying or selling USD, same day settlement should be achievable as there is no banking cut off times. GBP payments are best placed during business hours to ensure same day credit. If you would like to make same day transactions it is useful to exchange in the morning pending rates for timely settlement.

Drawdowns

Using Forward Contracts Early

When managing FX risk a key focus is flexibility. We are aware that business timings and requirements can change, and equally forecast cashflow accuracy is not always a simple process. You can fix a single price forward contract for a future date, such as 90 days in the future. This provides security of the downside risk of unfavourable exchange rate movements over the period. You can choose to fix the forward contract for a single date and settle the full balance on that specific maturity date.

For flexibility we can also structure single price Forward Contracts on an open or window basis. An open forward contract allows you to settle against the fixed price at any time over the contract period based on cashflow requirements. Forward contracts can also be structured on a window basis allowing you to settle between a start date and maturity. Forward example, you might secure a Forward Contract over 6 months with a 30-day window period. This means you can settlement the forward contracts within the final month to maturity.

Rolls

Extending Forward Contracts at Maturity

Extending Forward Contracts at expiry is useful for flexibility if there are payment and operational delays. If you have experienced problems when rolling or extending Forward Contracts at maturity with your relationship bank or FX provider, then we are very happy to have a discussion to confirm if we can offer more flexibility.

Sometimes at expiry you might be forced to extend the contract at the market live market rate or pay the mark to market difference. Sometimes it is more flexible to extend the contract at the original historical forward rate and adjust the price to cover a commercial charge and market charge if there is a forward point adjustment.

FX Hedging Policy

Foreign Exchange Policy

Often the decisions of when and how to secure FX risk falls on a single person within an organisation. When FX plans and strategy are not discussed, approved and agreed by all directors, board members and shareholders, often there can be a mismatch between goals and aims when implementing currency risk strategies.

A clear plan in writing ensures all parties are aware of how FX risk is managed. This helps those implementing the strategy with specific guidelines in all aspects of managing currency exposures.  We value a risk mitigation approach which focuses on securing operating margins. If you are agreeing a Corporate FX Policy, we are very open to discussing our suggestions in line with your goals and motivations and can support throughout the process.

Layered Currency Hedging

Layered FX Hedging Strategies

A useful strategy for risk management is layering cover on a consistent and regular basis. Sometimes taking out larger and long-term commitments does not work for your specific requirements. A layered approach to hedging helps to blend your overall hedged levels, providing a cushion if live market rates move unfavourably. It also allows you to blend higher if levels trend in your favour.

This will often be linked to your FX policy in which you maintain a specific amount of risk management cover in proportion to your overall forecast cashflows. For example, you might review your requirements on a monthly basis and add a layer of cover quarterly up to 12 months forward. You are taking an overall view of forecasted net exposures and maintaining a consistent approach to adding protection against unfavourable exchange rate moves.

Types of Risk Management

Types of FX Hedging Strategies

Hedging Strategies will vary broadly based on the risk and exposure they are managing. The suitability will also be determined on an individual company basis. If you agree long-term projects or contracts with customers, then often it is useful to view these in isolation and protect the business margins for that specific requirement.

Sometimes it is more appropriate to secure the cost of individual invoices or customer orders. For example, an order is placed with a supplier in USD and the balance is due to be paid in 3 months. Then the underlying USD total is secured for the same time-period.

Alternatively, a customer may place an order and pay in EUR in 3 months. The EUR total is fixed over the period into GBP to secure the business margin. Cash flow timings are often subject to change when debtors, customers, clients pay later than expected. If you are working to forecast cash flows, then please reach out for a discussion. We can structure risk management strategies on a flexible basis to allow for early settlement and plan for possible delays in receipt of funds.