Trial 10-12 May 2022

Finteum will have a trial for all banks to participate 10-12 May 2022, zero cost or IT work required. Please contact us to join.

In April 2021 we hosted an interbank trial of our intraday FX Swap solution, with participation from 11 large global banking groups totalling $14.5 trillion in combined balance sheet value.
Those banks, which included NatWest, Deutsche Bank, and nine others executed 76 intraday FX swap transactions over the course of one of the hour-long simulated trading sessions, based on 66 orders in a central limit order book and 69 bilateral RFQ’s.

In post-trial anonymous polling, 100% of attendee banks indicated the Finteum initiative was good for the banking industry and the majority were confident that the savings through intraday markets would be in the millions per year.

Most have gone on to have active roles in our intraday rule book sessions, continued their assessment of the Finteum initiative for 2022/3 or have otherwise confirmed their intention to join.

As we move closer to launch we are offering the opportunity for even more banks to use our system alongside their peer banks, and see how the coming intraday interbank market is to operate. As well as developing functionality based on the feedback of last year’s participants, intraday repo will be included as an additional simulated market in this year’s trial. Please contact us to join.

THE PROBLEM

Current mechanisms don’t enable efficient intraday management for banks. Unpredictable cash transactions throughout the day, coupled with legacy infrastructure and timing uncertainty, have created a need for better ways of managing intraday liquidity. Managing this risk is a high priority for banks.

 

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THE SOLUTION

Finteum is creating a global financial market for intraday FX swaps on distributed ledger technology (DLT). Most finance DLT applications are replicating existing transactions on-ledger to increase transparency and cut costs, but Finteum uses the power of DLT to create a valuable market for intraday liquidity that was previously impossible.

The Landscape

Intraday liquidity risk is a key liquidity risk for banks and is under increasing scrutiny. Managing intraday liquidity effectively can save a banking organisation tens of millions per year from increased efficiency in the deployment of balance sheet and capital, and optimisation of liquidity buffer assets.

 

At Finteum, we believe that existing mechanisms available to banks don't adequately allow for efficient balance sheet management, such as:

-  Agent bank credit lines

- Central bank intraday borrowing

- Withholding outgoing payments (throttling)

 

We also understand that banks are implementing solutions to improve intraday liquidity capabilities:

- Measurement and data sourcing

- Monitoring and reporting including BCBS 248

- Governance; stress testing, roles and responsibilities

- Management and optimisation

 

We are speaking with banks to explain how Finteum complements these ongoing initiatives.

 

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Get in Contact

If you work in a bank in Treasury, ALM, Operations, Risk, Technology or another area and you are interested in Finteum, please get in contact with us. We are meeting with banks in London.