NatWest Launches Currency Hedging Service with Lumint
Posted by Colin Lambert. Last updated: December 15, 2022
NatWest has unveiled a new passive currency hedging service in partnership with currency management services provider Lumint Corporation.
With the new service, NatWest will provide automated administration of passive currency hedging programmes including share class, portfolio, look-through and index replication strategies, supported with real time performance attribution and reporting. Lumint will provide the ability to operate passive currency hedging mandates, supported by the automation of data processing and system integration into both NatWest’s agency FX and principal market making execution services.
By combining these tools, NatWest says it will bring transparency and clarity to services that are often challenging for customers. “With TCA (Transaction Cost Analysis) from New Change FX, NatWest Market’s agency FX offering gives clients a powerful new choice in their pursuit of better FX execution,” the bank says, explaining that previously, most clients were unable to review costs and charges associated with the FX hedging transactions with their custodian banks. “NatWest seeks to offer clients a solution that removes any opportunity for price discrimination with their existing service providers and focuses on providing maximum transparency during their FX execution cycle,” it states.
Nick Pedersen, head of digital, NatWest Markets, says, “We are thrilled to be one of the first banks to combine agency and principal execution solutions with passive currency overlay. Our partnership with an emerging fintech like Lumint allows us to tailor technology solutions and remove FX hedging challenges for our customers.”