Following the joint development of an online trading facility in January 2001, Siemens Financial Services (SFS) has enhanced its internal trading capabilities using Barclays Capital’s FX Trader. James Kavanagh at Barclays Capital says the upgraded version of the existing platform allows SFS to risk manage its own trades directly or via the SFS central treasury. He explains that in the initial release, trades from SFS regional treasuries flowed into the central treasury. In the new release; however, the regional treasuries can choose to manage the risk.
“The Siemens-tailored FX Trader significantly contributes to bring the straight through process for small ticket intra-group FX trading a big step forward,” says Hans-Peter Rupprecht, head of treasury and financing services at SFS. “The process automation has reduced manual input and thus considerably decreased processing time. More importantly, our risk advisors have more time to support the business divisions with advice on risk analysis, hedging strategies and latest market developments.”
The service, which is a white-labelled version of the standard Barclays Capital FX Trader, allows SFS to trade spot, forward and swaps in up to 240 currency pairs, with live streaming prices.
Kavanagh adds, “In general, the process can be easily modified to work on a rules basis, allowing automated trade routing for risk management.” The bank says the system is available 24 hours a day on active trading days.
The system can be integrated with most trade entry systems via the multi-trade upload feature and, for most treasury management systems, with vendor cooperation. This provides a fully automated trade flow process with all the associated cost benefits, the bank adds.
Kavanagh notes that clients are becoming more aware of the possibilities of ventures such as this, suggesting, “This illustrates the value that single bank solutions like Barcap FX Trader, continue to offer for high volume, lower value FX trades, when compared with the transaction costs of multibank systems.”