Solutions and Partnerships for the Next-Generation Corporate Treasurer
In recent years, companies have become increasingly focused on managing their FX risks. That’s because they face challenges from seemingly all sides: increasing regulatory constraints, bank-driven reductions of available liquidity, and on top of it all, the cost of hedging against all the volatility these factors create. Global trading and treasury solutions provider 360T is broadening its reach with new products, services and partnerships. One area in which the company is partnering with multinational corporations is in automated trading, with the introduction of its execution management system (EMS).
According to data collected by The NeuGroup, an independent company dedicated to leading peer knowledge exchange for treasury and finance professionals, treasurers put FX/commodities risk as one of their top priorities for 2016. And a recent study from Chatham Financial substantiates this perspective by showing that companies can lose billions of dollars annually due to unhedged FX exposures.
So with FX top of mind, companies are seeking ways to hone their FX management strategies and generally bring a more comprehensive approach to foreign currency risk management. One way to get to that holistic approach is through automation, which then raises the question, “Which provider?”
The answer isn’t always easy, but one way to arrive at it is to find a company that is growing in use and innovation, is backed by plenty of resources, scalable to your firm’s needs, and seamlessly integrates into your systems. Meeting these criteria is 360T, a global firm with German roots that operates in over 75 countries worldwide. The company supports not only corporates, but also a host of different clients and segments that operate within the global FX market. “The market structure as we know it is evolving, and 360T is very committed to ensuring that we can provide the relevant services to our clients so they can ensure transparent execution and business continuity”, Alfred Schorno, Global Head of Sales, 360T Group, says.
360T was founded in 2000 in Frankfurt, Germany, and since then, supporting corporates’ needs has always been a core competency. More than two-thirds of its 1,600 buy-side clients are international corporations that use 360T’s multi-bank, multi-asset execution platform for trading over-the-counter FX and short-term money-market instruments. Average daily trading volume on the platform is 70bn euros. 360T “seamlessly integrate[s] into a corporation’s internal infrastructure… whether it is a treasury management system, an ERP or an accounting system,”.Schorno says.
There are noteworthy advantages for corporations who use electronic trading venues: greater price transparency, time savings and reduction in process risk, whether related to operations, price, markets, or liquidity. In adhering to the ‘new’ regulatory requirements, corporations would also do well to consider a venue that helps to improve the trading process with pre- and post-trade analytics. Key analytics are the foundation of execution optimisation, including, but not limited to, transaction cost analysis (TCA). “The entire range of 360T’s pre-and post-trade analytics gives the treasurers greater insight into their execution strategy and consequently increases efficiency in their day-to-day business, as well as predictability in the execution process,” says Schorno.
Using the platform, treasurers can more easily mitigate risk while supporting their FX hedging objectives and compliance obligations. And perhaps most importantly, 360T has the capability to help companies navigate the various regulatory regimes that are evolving around the world.
The company services clients that operate in developed markets globally. It is also a growing presence in developing markets, including Africa, Latin America, Asia Pacific, Russia, and the Middle East. Schorno says that 360T has been able to help clients in complex areas like Brazil, South Africa or India, where a myriad of regulatory rules and regimes, and tight restrictions on currencies can stump even the cleverest treasurer.
“We support clients that are either domestic to those local markets or international clients that have local operations,” he says. For instance, 360T might have a client domiciled in Dublin who also maintains operations in Brazil, and since the Brazilian real is an onshore-restricted currency, their local desks have to trade with local banks or liquidity providers. “We can facilitate centralised and decentralised treasury structures, where the head office has oversight so they can empower, enable and monitor trading activity at all their different branches around the world.”
Partners and consultants
One special aspect of 360T’s proposition is its strategic partnerships. The company partners with a number of organisations in order to provide its clients with a broad spectrum of solutions and seamless integrations. This includes companies like Misys and BELLIN for post trade automation, in addition to multiple well-known and even bespoke TMS, ERP, and accounting systems.