Joe Norena Managing Director, Head of Global Liquidity Services, Deutsche Bank
Joe Norena Managing Director, Head of Global Liquidity Services, Deutsche Bank

with Joe Norena Managing Director, Head of Global Liquidity Services at Deutsche Bank

Joe, you've said in the past that FX should be made more accessible and become an integrated feature of e-marketplaces. Would you describe the current philosophy of Deutsche Bank as being consistent with this view?

Integrating Foreign Exchange execution and processing into the workflow of any global company can make a positive impact to that company's bottom line. Online FX solutions provide by far the best opportunity to make an objective impact in the e-Commerce arena for such global institutions. Deutsche Bank's FX philosophy is to provide solutions to the processing of Foreign Exchange which add demonstrable value in enhancing our client's product and their market reach.

It can be argued that the key role of FX in eCommerce is as a driver for developing new products and reaching a much broader range of potential clients.
Do you subscribe to this view?

FX in eCommerce can be a key enabler of new product development. With traditional FX processing, transaction costs in some markets were prohibitive for both banks and clients. With the automation of FX dealing through readily accessible online systems, new markets have opened up and clients have been able to develop new product offerings where previously they would have been uneconomical.

With the focus on new web-based strategies for integrating FX trade execution with research & market information, what new developments have there been to your B2C and B2B platforms?

We recognised some time ago that clients needed quick access to a range of product offerings. Our approach has been to integrate all our products under one umbrella, combining trading with research and client tools. Our web-based solutions are not static though, and we can reach more clients, offer more opportunities to them and provide a more comprehensive service by working together on new developments.

We have often seen the goals of STP described as substantial, tangible, cost and risk reduction. Broadly speaking, how is Deutsche Bank addressing client needs for STP?

Client goals are certainly to lower costs and risks through more efficient and robust workflows. There is not a "one size fits all" solution though. The STP solution we offer a client depends on the complexities of their workflow needs and how they define STP.

Client needs vary significantly so our approach will either involve a custom-made solution or a connection with one of our STP partners.

Providing enhanced branding services provides many banks with the opportunity to analyse customer trading behaviour and pricing requirements. Does Deutsche Bank offer White labelling opportunities?

White labelling has been one of our biggest initiatives this year. Such solutions create strong partnerships with clients and often expand as we work together to other key strategic offerings that will enhance our clients’ presence with their customers. Our suite of white label products has been developed over the past 6 years, so for our white label clients we are not supplying only technology, but also providing in-depth experience of the business issues they face and using that in developing the products and strategy for our clients.

In respect of deal execution, telephone –based transactions can be found wanting in terms of efficiency and accuracy. Do you believe they still have a role, particularly for complex transactions?

There is still a need for traditional phone based business alongside online services which has been our view from day one of the eCommerce lifecycle. Personal contact is certainly key and a service we are committed to. The phone-based transaction is especially important for large, complex transactions where clients look to discuss with us the best structure for their needs.

Some banks believe it's important to add FX Prime Brokerage as a product enhancement to eFX platforms. Do you agree?

Yes. We have been offering FX Prime Brokerage as part of our suite of eCommerce solutions since day one. Again, our philosophy has been to provide a package of solutions from which clients can select the options which best suit their particular FX needs. This applies to their workflow and access to liquidity in addition to pricing and structuring.

Institutional Investor and Fund Manager interest in eFX has grown dramatically recently. Is Deutsche developing any special solutions or products for these groups?

Our first step in determining the recommended solutions for clients is to look at their particular issues and FX business goals. This applies equally to the Institutional Investor and Fund Manager segments as it has to other client groups and we are currently working with a number of these clients.

Concerns have been raised that the automation of FX execution will undermine relationships between FX salespeople and clients. Is this your experience?

On the contrary, particularly with our B2B solutions, we have found that client relationships have been strengthened into what could be termed a partnership.

Automating execution does not mean that clients are forgotten; rather it provides the space and time to work with clients on added value products and strategic transactions.

With the demise of Atriax, what is the current Deutsche Bank position in terms of joining other FX portals and aggregated services?

Our focus is on being a liquidity provider that services our clients. We are listening to our clients and their view on the marketplace development and setting our strategy around that.

As one of the major dominant FX market players, do you believe Deutsche Bank has a role to play by leveraging its strength and pioneering new eFX developments?

The feedback we are getting from clients and the marketplace is that they want to know the views of Deutsche Bank in the e-Marketplace development. It is important for us and our clients to share our views and be a major part of the eFX market development.

Finally, do you see electronic FX trading evolving to a cross-market, cross-product model?

A cross-product model is essential in bringing the efficiency and productivity gains achieved so far to a higher level. There are a number of different ways that such a model could be executed. The speed of development will depend on the needs of our clients.