Invisible FX: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Mend link.) |
imported>Doug Williamson (Layout.) |
||
| (One intermediate revision by the same user not shown) | |||
| Line 1: | Line 1: | ||
''Foreign exchange - pricing.'' | ''Foreign exchange (FX) - pricing.'' | ||
Abbreviation for invisible FX transactions. | Abbreviation for invisible FX transactions. | ||
| Line 25: | Line 25: | ||
*[[Price transparency]] | *[[Price transparency]] | ||
*[[Transparency]] | *[[Transparency]] | ||
*[[Visibility]] | |||
Latest revision as of 07:33, 24 March 2022
Foreign exchange (FX) - pricing.
Abbreviation for invisible FX transactions.
In the organisational context, invisible FX transactions are low-value FX transactions that are not visible to the organisation before committing to pricing.
- How to improve FX pricing
- "Most corporate treasuries have done a good job of eliminating the margins on high-value cross-currency payments through the use of ECNs, FX platforms and shopping around key FX players.
- They tend to have a minimum threshold, say £100k, above which cross-currency payments are considered a 'trade' and are booked via the central treasury team.
- However, cross-currency payments below that threshold, usually low-value but high volume, often fall into the 'black hole' in terms of price transparency – the ‘invisible FX’."
- Invisible FX - Barclays Bank.
See also
- Counterparty
- Electronic communication network (ECN)
- Execution
- Foreign exchange (FX)
- Platform
- Price transparency
- Transparency
- Visibility
