Banco Santander expanded its global infrastructure-based FX eBooks to Latin America during the review period, efficiently utilizing liquidity across regions and optimizing pricing for clients.
Starting in 2024, eBooks in Brazil exchange liquidity with Europe and Asia, enhancing FX risk management and hedging. The approach allows automatic hedging across regions, minimizing costs and offering competitive prices. Another area of focus for Santander Brazil is deal-contingent and event-driven business growth, exemplified by Santander’s role in a significant Brazilian asset transaction. For example, the bank acted as the sole EUR/BRL hedge provider for an asset manager to help mitigate their FX exposure during a key transaction. Santander Brazil helped structure a flexible hedging strategy, showcasing its expertise in risk management and the Brazilian market.
Banco Santander’s application programming interface (API) distribution in key Latin American markets has been highly successful, with over 12 client APIs in Brazil alone and a partnership with SAP for client connectivity. Over $3 billion in volume was executed through the newly created APIs in Latam, achieving strong double-digit hit ratios. The SCIB global FX strategy is complemented by local FX plans in Brazil, aimed at deepening regional presence, increasing market share and improving client experience.
The bank has also been committed to enhancing its FX infrastructure and global capabilities through increased investment and strategic partnerships. During the review period, Banco Santander upgraded its FX platform, made significant improvements in price formation and distribution, and enhanced data intelligence for integrated decision-making. The bank also strengthened its risk framework, security measures, and monitoring. Finally, the bank’s evolving API ecosystem expanded its offerings in payments and client connectivity.
Banco Santander’s efforts in Brazil during the review period help maintain it as top-ranked FX spot dealer in Brazil for the 10th consecutive year, according to the Brazilian central bank, trading over $500 billion in 2023. The bank also ranked second in the non-deliverable forwards market and is the only bank offering cross-border direct payment in BRL for offshore companies in Santander Asia. The bank achieves these results, in part, through its extensive FX sales team of over 60 professionals across six strategic locations in Brazil, enabling it to deliver personalized solutions to our clients.
“Santander Brazil is a key partner for FX risk management, being the top player locally for over seven years,” says Rafael Kappaz, head of markets Brazil CIB.
“We grow rapidly on innovative solutions, like the new cross-border direct BRL payment capabilities for clients outside Brazil. This showcases how our global and local presence combined can make a difference for our clients.”
