Invisible FX

From ACT Wiki
Jump to navigationJump to search
The printable version is no longer supported and may have rendering errors. Please update your browser bookmarks and please use the default browser print function instead.

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


External link