Frances Maguire
Frances Maguire

Relationship e-trading: A new force entering the world of corporate FX?

Banks and corporates have long relied upon strong relationships in FX where pricing and services are built around the size and type of the order flow. However, while the growing use of electronic over voice trading for vanilla transactions has freed up banking staff to focus on the higher value, more complex deals and the automation brought by straight through processing have lowered costs and brought greater efficiency, it means there is less daily contact.

E-commerce may have freed up banks to focus on more complex deals and product innovation but they still need to manage these relationships to ensure they understand and meet the needs of their corporate customers.Takis Spiropoulos, managing director and head of the e-Solutions Group, at CIBC World Markets, saysthat the global economic downturn has reshaped the traditional corporate FX landscape in that it decreased the number of bank counterparties that could form a lending syndicate to corporates and put risk management firmly in the spotlight. “Corporates are relying on fewer banks, especially the ones they have credit relationships with,” he says.As a full-service FX provider, he adds, CIBC focuses on a strong dual channel approach, leveraging the strengths of each. Spiropoulos says: “Electronic trading offers price transparency, STP for payments and transfers, and minimisation of errors for both the client and the bank’s back-office. Using the e-channel for those activities...continued

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