Dynamic FX hedging at heart of BNP Paribas-Kantox partnership
Corporates' increasing need to use treasury resources more efficiently has persuaded BNP Paribas to partner with fintech Kantox to offer a new dynamic hedging solution to clients.
Dawn of a new partnership between BNP Paribas and Kantox
BNP Paribas has unveiled a strategic partnership with Kantox, an FX-focused fintech, that will enable EMEA-based treasurers to automate and streamline FX workflows. It is designed to complement the range of products already available on BNP Paribas’ digital banking platform, Centric.
Dynamic hedging addresses customer demand for greater efficiency in FX processes – a demand that is usually driven by a need to use treasury resources more effectively, explains Xavier Gallant, co-head of corporate rates, FX and local markets sales EMEA at BNP Paribas.
“One of the key features for customers is that it provides full automation of treasury processes from identification of currency exposures to execution and reporting of transactions,” he says. “Automating low-value-added functions such as day-to-day hedging enables the treasury team to focus on more strategic issues.” These could include selling bonds or carrying out acquisitions, for example.
The solution also improves the control framework around the execution of FX, so that rather than involving multiple treasury dealers with different approaches to hedging, a customer can ensure compliance with best practice because the rules are set for all currencies and exposures.