FX Product of the Year – Haus FX from Deutsche Bank

We have been through so many iterations of white labelling that it is hard to count them all, but one thing has come through over the years – the right model simply did not exist to allow both sides to grow comfortably and without friction. Often this was because it was a simply a liquidity relationship (and liquidity is still vitally important of course), and this meant that anyone seeking to optimise execution (i.e. everyone!) felt like they were missing something.

What is so clever about HausFX – apart from the name, which is pretty good – is that it represents the latest effort to provide FX-as-a-service, in other words, a much broader package than has previously been possible. It helps that the bank has the foundation of its e-FX business, Autobahn, to fall back on, but while that platform is at the start of a journey, HausFX meets needs of the clients now.

It is, essentially, the perfect offering for a firm that does not perhaps take FX as seriously as it should; a firm that recognises that better FX management and processing will aid the bottom line, but has little or no expertise in house to help deliver those incremental improvements. Into this breach steps HausFX.

It delivers automated and configurable workflow, including the ability to create systematic execution and hedging strategies; simplified payments and trading, and is backed up with post-trade services that would be expected from a major prime broker. The bank also has, as it must have for such an offering, a comprehensive data and analytics package to help clients better understand their business.

Perhaps the difference between HausFX and its forerunners is the fact that this is very much a technology package, with access to serious liquidity the icing on the cake. Another factor to consider is how this is not necessarily aimed at regional and smaller banks – although they could benefit from the services – it also works for the vast number of asset managers, particularly in the passive space, that see FX as an administrative burden.

So, a white label system? Not really. HausFX is much more than that, it is the bedrock for better currency management, while not having to spend too many valuable investment dollars on a product that many of the client base neither interact with on a regular basis, or have a grounding in.

Autobahn is, as noted, at the start of a road to renewal, but this does not mean Deutsche’s e-FX business is not still sitting comfortably at the top table – it is. This provides the added bonus of better execution for the client.

Processing power? Quality execution? A backbone to an oft-forgotten part of the business in some firms on the buy-side? HausFX delivers on all fronts.