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Foreign Exchange Transaction Rate
Monitoring provides clients with advice over whether on average
they are getting good or bad FX rates from their cash manager.
Foreign
Exchange Transaction Rate Monitoring
Euraplan Foreign Exchange service
provides clients with advice that lets them reach an informed
decision over whether on average they are getting good or bad FX
rates from their cash manager.
Foreign Exchange occurs when one
currency is bought or sold against another. There are two types of
foreign exchange (FX):
- Spot
foreign exchanges are specifically foreign exchanges that are
traded and settled within at least two days.
- Forward foreign
exchanges can have their trade and contractual settlement
dates up to six months apart. Forward FX transactions are
usually employed by a pension scheme to minimise losses on
foreign investments; this is called hedging.
The Foreign Exchange service
compares rates used by third parties, such as custodians or fund
managers, to the FTID daily FX rates.
This new functionality can be
purchased in two forms. It can be sold as a component of OpenAIR
Investments, and can also be purchased as a separate service
through IMAS, allowing pension schemes to
monitor the exchange rates obtained on spot foreign exchanges by
the pension funds custodians or fund managers.
Download
Further Literature
Foreign Exchange
Introduction (138 KB)
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