Kantox Unveils In-House FX

Currency management technology provider Kantox, which was bought by BNP Paribas in late 2022, has unveiled In-House FX, a centralising currency management tool for multinational businesses.

The solution allows companies to centralise the FX management and trade executions of their subsidiaries, maximising exposure netting for the group and enhancing liquidity. This can be done on a 24/7 basis, with embedded and customised mark-ups established for each subsidiary by the central treasury. The latter also retains full control over subsidiaries’ hedging policies as well as internal trades – this can include the reviewing of rates and approving internal FX trades that exceed specific criteria.

Finance teams gain full traceability from the original entry at subsidiary level to the execution of external trades, Kantox says, adding that the central treasury can manage risk from internal trades by executing an external FX transaction before providing a rate and confirming the internal FX transactions; take on the risk from those transactions automatically; or aggregate internal FX transactions into external ones in a back-to-back process.

The central treasury acts as the sole trading entity, managing netting at the group level on top of subsidiary-level netting.

“A central treasury can now be much more than a simple intermediary between its subsidiaries and the bank,” says Simon Chevoleau, chief product officer at Kantox. “Kantox In-House FX allows the headquarters to take control, enhance and even optimise the FX capabilities for the entire group.

Antonio Rami, co-founder and chief growth officer at Kantox, adds, “As we launch our Kantox In-House FX solution, we are proud to provide a seamless platform for companies to centralise their FX management in the most optimal and automated way. At Kantox, we are committed to empowering businesses to navigate the complexities of foreign exchange with efficiency and confidence, providing a competitive edge in today’s global marketplace.”