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CASE STUDY: FX Risk Management


Confidentiality, Settlement And Large Currency Execution

Tags

  • Australia
  • Energy
  • Foreign Exchange
  • Resources
  • Risk Management

“Their confidentiality, ability to settle and proven track record in executing large FX amounts discretely are why we choose ANZ as our banking partner.”

manage risk & exposure


We have a range of solutions to suit your needs.

Find out more about better management of your foreign exchange risk with ANZ.

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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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1) By Regulation
a. Dodd-Frank

2) By Business
a. Foreign Exchange Wholesale Disclosure

3) By Country
a. US Disclosures