Antti Kyyrö, Financial Markets, Nokia Siemens Networks Treasury, in an simple and important presentation described the range of automated solutions they have adopted for local FX conversions.
In Asia, NSN set up a conversion process with BAML covering the seven countries. The local units initiated the payments with daily FX fixings and pre-agreed spreads, confirmation process linked to their TMS, and standardized daily and monthly reporting.
A number of other solutions were adopted around the world:
- in Brazil the automated pricing for locally initiated payments is PTAX based with manual reporting
- CitiFX Bench is used for audited fixings in four countries
- request for quote transactions using CitiFX Pulse in 12 countries, allowing NSN to set execution thresholds so that only the larger payments are made centrally.
Using this approach, NSN has achieved significant improvements in their operating efficiency, e.g. NSN has 600+ deals through automated pricing in Asia YTD, and freed up vital corporate treasury resources.
This is another excellent example of how the corporate treasury department are now able to automate low value transactions and only be involved in the high-value transactions.
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