Netting and Foreign Exchange

Full-fledged multilateral netting tools coupled to an exposure and hedging system are designed to :

• Reduce the transaction fee and exposure resulting from inter company billing
• Increase the forecasting horizon of foreign currency position
• Enhance the control over inter -company invoice processes
• Significantly reduce the fee and risk associated with foreign currency exchange

Developed as a fully capable front, middle and back office, these tools are designed to implement the highest level of control over the risk involved with foreign currency trades. Using Internet technologies, the system harvests the full benefits of collaboration between participants of the netting process while constantly updating the foreign exchange position. Embedding the required controls in the systems also adds to the overall productivity gain and eliminates most of the risk associated with foreign exchange.

When used in association with the cash management and liquidity module, this solution delivers its highest potential not only by enhancing the forecast horizon and control over foreign exchange risk, but also by implementing a true collaborative process within an organization. The use of Internet technologies allows this system to be easily deployed across borders and departments to streamline intercompany invoicing. Companies benefit from the reduced foreign exchange cost and risk.

Key features include :

• Mark-to-market and sensitivity analysis for all operational cash flows
• Embedded pricing module for options and other derivatives
• User defined payment cycle
• Web enabled inter-company invoice entry, review, and acceptance