The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Optimizing liquidity buffers: How Finteum aims to reduce the burden of FX swaps

A platform that promises to shake up the FX swaps market has taken another tentative step towards its objective of reducing banks’ liquidity buffer challenge.

Photo: iStock

Managing liquidity is a balancing act for bank treasurers. Having too much capital tied up in the buffers designed to ensure banks can honour their financial commitments is an inefficient use of capital, but insufficient funds in these buffers can lead to outgoing payments being delayed.

Swaps are one of the most dynamic components of the FX derivatives market, accounting for half of all daily FX market turnover, according to the BIS’s 2019 triennial survey.

However, the typical swap takes two days to settle, during which time the funds in the liquidity buffer cannot be used for any other purpose.

Finteum, a UK-based fintech, is aiming to help with that. It announced in June that NatWest, Deutsche Bank, Bank of Ireland and Banca Mediolanum had trialled a solution for inter-bank intraday FX swaps with seven other banks whose identities were not disclosed.

The use of intraday FX swaps could enhance liquidity management capabilities
Sean McBrien, Bank of Ireland

An intraday FX swap involves a payment-versus-payment exchange of currency on the same day the transaction is agreed, with a second exchange at a predefined time later that day.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree