CASE STUDY: FX Risk Management
Confidentiality, Settlement And Large Currency Execution
“Their confidentiality, ability to settle and proven track record in executing large FX amounts discretely are why we choose ANZ as our banking partner.”
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Find out more about better management of your foreign exchange risk with ANZ.
ANZ had previously helped us to successfully execute an FX deal, so in 2015 we went back to them to get assistance with a large and highly sensitive project. The aim was to find a better way to manage our capital expenses by hedging our FX exposure as we bought AUD and sold USD.
The ANZ Structuring & Consultative Risk Management team worked closely with us to really understand our needs. The fully transparent and confidential solution we agreed upon saw:
- 44 market parcels of AUD50-100million, broken into ~1850 smaller deals, executed using an internal, direct market access algorithm called Time Weighted Average Pricing (TWAP), specifically designed to clear large FX amounts and to hedge FX risk.
- A team of experts operating behind ‘Chinese Walls’ with our representatives physically sitting with the ANZ team in London as the deal executed.
- The bank effectively managing our FX risk by clearing large FX amounts discretely over several hours without moving the market.
- Us receiving the best price we could get because of our tight bid/offer spreads obtained through TWAP.
Our customer would like to remain anonymous.
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