Deutsche Bank's Greg Edwards, Head of FX eCommerce Sales Europe, and Alex Price, Head UK Corporate FX, gave a fascinating presentation, at the Association of Corporate Treasurers Annual Conference in May, on how Deutsche Bank is developing the tools and services to help overcome the FX execution and hedging problems in regulated markets. They listed the standard challenges in regulated markets: tax, legal, regulatory compliance and documentation, and for the corporate treasurer how to ensure control, visibility and how to ensure that the central expertise is made available locally.

They believe that the main issues in order to improve FX execution and hedging are understanding the documentation process in all the different markets, controlling how local subsidiaries transact and ensuring the company gets a fair price.

What is required is a system to electronically enforce your trading policy:

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We are not there yet - many pieces, e.g. documentation need to be standardised and automated - but the future for FX execution and hedging in regulated markets is clear.