November 8, 2022 | Stamford, CT — Corporate treasury departments globally are taking advantage of evolving technology and changes to market structure to implement more strategic approaches to FX trading—a marked change from the past, when FX was seen mainly as a cost of doing business.

Companies around the world are looking to integrate new data and analytics platforms to optimize FX trading performance. Approximately 40% of the corporate treasurers participating in a recent Coalition Greenwich study expect access to better data and analytics to have a major impact on FX market structure and performance in the next 12 months. 

“Companies are major users of FX markets for hedging purposes, but historically they have been less focused than asset managers and other financial investors on the execution quality of FX trades,” says Stephen Bruel, Senior Analyst for Coalition Greenwich Market Structure & Technology and author of Corporates Get More Strategic with FX Trading.

The new approach to FX by corporate treasury departments is supported by changes to the FX Global Code that can help corporates understand sophisticated tools like algorithms and transaction cost analysis. While only about one in 10 companies are currently using algorithmic strategies in FX, a sizable share of corporate treasurers cite the expansion of algo trading as their top priority in FX for the coming year. 

“Corporates recognize the potential that improved data and analytics can have on their business, especially to help them understand and manage volatility—a point that has been driven home in 2022,” says Stephen Bruel. “Going forward, the increased sophistication of the FX desk will help companies optimize results and maximize the value of the treasury department.” 

Corporates Get More Strategic with FX Trading analyzes major changes to FX market structure and the FX workflows and execution mechanisms used by corporate treasury departments, with an emphasis on the data analytics platforms companies are using to inform and ultimately transform FX trading.