fx global code of conduct

The FX Global Code of Conduct is a set of global principles of good practice in the foreign exchange market, developed to provide a common set of guidelines to promote the integrity and effective functioning of the wholesale foreign exchange market. It is intended to promote a robust, fair, liquid, open, and appropriately transparent market. […]

fx market participants

FX market participants are the main players in the world of global foreign exchange. They can be classified into three broad categories: liquidity providers, end-users and governments. Helped by brokers and dealers with whom they have close relationships, international banks are the key liquidity providers. They facilitate end-users’ access to liquidity. The most important end-users […]

fx policy

FX policy is the process by which companies capture the growth opportunities that result from buying and selling in multiple currencies. A firm’s FX policy is therefore of strategic value; it comprises the entire FX workflow: the pre-trade phase (including the firm’s pricing policy), the trade phase (hedging) and the post-trade phase (cash management and […]

fx policy guidelines

FX policy guidelines are a set of procedures that spell out a firm’s methodology and tools in terms of managing currency risk. Drawn by the finance team, FX policy guidelines are based on the business specifics of each company, including its pricing parameters, the location of its competitors, the weight of FX in the business, […]

fx policy mandate

A company’s FX policy mandate is the document that sets out: (a) management’s strategic objectives in terms of currency management; (b) the goals of the firm’s FX hedging program. Given the FX policy mandate, the finance team spells out the practical steps needed to execute the firm’s hedging program. For example, a firm in the […]

fx policy template

An FX Policy Template is a document that sets out a firm’s strategic objectives in terms of currency management, as well as the goals of its hedging program or combination of programs. The FX Policy Template also enumerates the resources allocated to the finance team in order to execute FX hedging. In firms that automate […]

fx rate alerts

Foreign exchange rate alerts (FX alerts) are programmed email or message notifications of a pre-established exchange rate level. Set by currency risk managers, foreign exchange rate alerts cut out the time and commitment required to follow exchange rate movements and reduce the risk of missing a desired rate. By triggering the execution of forward hedges, […]

fx transaction costs

FX transaction costs or ‘foreign exchange transaction costs’ represent the expenses incurred by buying and selling and foreign currencies from a foreign exchange broker/dealer. In currency markets, transaction costs comprise commissions charged by foreign exchange brokers and ‘spreads’ charged by both brokers and foreign exchange dealers. While operational costs are easily identifiable by customers, the […]