Risk Management
Published  7 MIN READ
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Integrated Cross-Border Operations – Leveraging the Foreign Exchange Opportunity

Integrated Cross-Border Operations 

by Greg Edwards, Global Head of Transactional FX, and Gareth Lloyd-Williams, Head of UK Corporate Sales, HSBC

Greg EdwardsGareth Lloyd-Williams

Key Points

  • Banks such as HSBC have invested heavily in FX innovation at both a strategic and operational level. FX payments are a key element of this innovation to support a variety of business cases and industries.
  • Innovative FX payment solutions could enable treasurers to reduce risk and cost, but also to support commercial opportunities such as providing local currency pricing to customers.
  • As treasurers focus on new ways to add value to the enterprise, HSBC’s FX payment solutions could enable them to support the business in promoting innovative sales and purchasing strategies to gain competitive advantage.

Managing foreign exchange (FX) risk is a priority for every international treasury function, helped by a range of solutions which have emerged  in recent years to increase risk transparency and enhance operational efficiency. However, by leveraging innovative FX solutions, treasurers can also facilitate new commercial activities and create competitive advantage, whilst managing risk and cost.

Early stages of the FX innovation journey

Foreign exchange (FX) management has been an area in which innovation has flourished over the past decade or so, but this has largely been targeted at automating and increasing transparency of FX transactions between treasurers and their banks. This includes the evolution of bilateral dealing platforms (e.g., HSBC  evolve) offered by banks, and independent, multibank trading platforms. By leveraging these platforms, treasurers can seek competitive quotes on a wide variety of currency pairs and product lines from multiple counterparties, transact online and transfer deal and quote information to the treasury management system (TMS).