Magazine article Global Finance

Rules-Based Approach to Currency Trading

Magazine article Global Finance

Rules-Based Approach to Currency Trading

Article excerpt

Nils Waldmann, of Nordea eFX Solutions Connectivity Sales and AutoFX, describes how a customer request led the bank to break through internal silos.

Global Finance: How is your FX hedging solution unique?

Nils Waldmann: AutoFX automates the entire process chains of foreign exchange risk and liquidity management that normally require high-level attention and manual work in treasury departments. With Auto FX, three to four manual steps, perhaps across different banking systems, have been reduced to straightthrough processing via a rules-based automated setup.

AutoFX has disrupted the traditional treasury setup through automated efficiency and reduction of the need for trading platforms and functionalities that may have been provided by treasury management system providers.

GF: How did the idea for AutoFX evolve?

Waldmann: The inspiration for AutoFX came from a customer asking us to take over their FX handling on a daily basis. As this was neither legally compliant nor possible for us as a bank to execute manually on behalf of the customer, we were inspired to build a rules-based solution that would take care of it. As the customer said, "You have all the information about our accounts in your systems, so surely you can build a solution around it to do the actual trades that it takes." They were right, so we did!

GF: What were the key challenges to creating this solution?

Waldmann: As with all projects, it was difficult to secure funding. Often, new services also challenge your own organization and existing business, so the combination of those elements was tough to overcome.

Developing new products in the banking industry is often a long, bureaucratic process with lots of internal stakeholders. It is also a process that can choke creativity and innovation. At the very least, it often prolongs the crucial time to market. …

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