Kantox

What makes Currency Management Automation software different from a TMS?

TMSs lack functionalities in terms of the three phases of the process of FX automation — the pre-trade, trade and post-trade phase. At the level of the pre-trade phase, most TMSs lack a strong FX rate feeder, which is needed for pricing with currencies; in addition, they prioritise balance sheet items, thus excluding more important FX exposure items like forecasts and firm commitments. When it comes to the trade phase, TMSs lack automated rules for trade input, validation and confirmation. Finally, during the ‘cash flow moment’ of the post-trade phase, they are ill-equipped to facilitate the critically important task of ensuring that the value date of initial hedges coincides with the settlement of the underlying positions, leading to the manual execution of spot, forward and swap market transactions.

What are the main disadvantages of managing currencies on spreadsheets versus specific technology like Currency Management Automation?

Spreadsheets were never designed with the needs of FX management in mind. They introduce new risks into the currency management process, such as data input errors, copy-and-paste errors and formula errors. Currency Management Automation, on the other hand, uses APIs to execute the end-to-end FX workflow. From pricing with foreign currencies to the ‘cash flow moment’ of FX payments and collections, the technology allows data to seamlessly flow between different systems —ERP, TMS and others— without any need for spreadsheets.

Can businesses still retain some degree of control over their FX or is it fully automated?

Absolutely. Each step of the FX management process requires ‘business rules’ set by management, who always retain the desired degree of control. These rules encompass things like exposure validation and, during the trade phase, the input, validation and confirmation of trades, and the choice of preferred liquidity providers. Moreover, the client can easily update the business rules as the process of automation is finetuned and adjusted.

What’s the difference between a Multi-Dealer Platform and the Kantox solutions

Multi-Dealer Platforms like FXAll or 360T have done an outstanding job at reducing trading costs and at automating the trade phase of the corporate FX management process. But the reduction in spreads, while important, only tells part of the story. If you do not have a system in place that recognises a piece of FX exposure as soon as it is generated, a few pips saved in trading costs are largely irrelevant if a 2% move in currency markets ends up materially hurting performance. Kantox solutions integrate all the phases of the FX risk management process, thus creating more value than the sum of the parts.

Kantox clients can expect to have their tailored solution implemented and to be fully onboarded from project start to go live in 6-8 weeks. The product is cloud-based (SaaS), and clients can connect via API. It is available in four languages (English, French, Spanish & Italian).

Onboarding starts with a customer being connected with a Customer Success Manager. They will conduct compliance checks of the company’s documents and financial information. A bespoke guide is then prepared for the client, which will guide the customer through their personalized solution. The Customer Success Manager will initiate a kick-off call, followed by weekly meetings to guide testing, conduct reviews, and ensure the product is performing effectively.

• Kantox’s customer service personnel are located in the company’s Barcelona office.
• There are over ten support representatives available.
• Customer Service is available 08:00 – 19:00 (CET) Monday – Thursday, and between 08:00 – 17:00 (CET) on Friday.
• There are different levels of support available. All clients are assigned a Customer Success Manager for account management, strategic support and reviews. These can be contacted either by email or phone. For more general support we advise users to contact support@kantox.com.
• Support is available in multiple languages including English, French & Spanish.

Kantox takes part in a diverse range of both virtual and in-person events and conferences. The main focus of these events is either treasury, technology or finance or will focus on specific verticals such as travel, food, manufacturing and adtech. The events will mostly be international, with the team partaking in some country-specific events in Spain, France, Germany & the UK.