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Risk Management

FX Risk Management: Confidentiality, Settlement and Large Currency Execution

2016-09-08 09:16

“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.

anzcomau:institutional/Risk-Management,anzcomau:institutional/foreign-exchange,anzcomau:institutional/Australia,anzcomau:institutional/REI,anzcomau:institutional/Commodities
FX Risk Management: Confidentiality, Settlement and Large Currency Execution
2016-09-08
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Important information

This publication is published by Australia and New Zealand Banking Group Limited ABN 11 005 357 522 (“ANZBGL”) in Australia. This publication is intended as thought-leadership material. It is not published with the intention of providing any direct or indirect recommendations relating to any financial product, asset class or trading strategy. The information in this publication is not intended to influence any person to make a decision in relation to a financial product or class of financial products. It is general in nature and does not take account of the circumstances of any individual or class of individuals. Nothing in this publication constitutes a recommendation, solicitation or offer by ANZBGL or its branches or subsidiaries (collectively “ANZ”) to you to acquire a product or service, or an offer by ANZ to provide you with other products or services. All information contained in this publication is based on information available at the time of publication. While this publication has been prepared in good faith, no representation, warranty, assurance or undertaking is or will be made, and no responsibility or liability is or will be accepted by ANZ in relation to the accuracy or completeness of this publication or the use of information contained in this publication. ANZ does not provide any financial, investment, legal or taxation advice in connection with this publication.

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