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.