Invisible FX: Difference between revisions
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Revision as of 07:33, 24 March 2022
Foreign exchange - 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
