Deliverable FX is the preserve of institutional giants: Sucden Financial’s Falgun Khamar takes a close look

The deliverable FX companies which provide direct foreign currency transfers and settlements across the length and breadth of the globe form a vast part of the financial landscape in today’s world of international business which requires settlement in multiple currencies.

Additionally, the vast increase in worldwide travel by all manner of individuals which range from corporate executives and heads of large entities to students enjoying a post-graduate trip around the world.

Many companies in the deliverable FX sector are huge, with electronic systems that can process invoices in foreign currency as well as provide transfers which are made in a local currency, and delivered in a local currency in a different country.

An interesting point is that the dramatic growth in this sector, which includes international firms such as MoneyGram, Travelex, and Western Union operate in such a separate business environment to the FX brokerages in the electronic trading sector that the paths do not cross in any shape or form.

This is the case as far as the actual service providers to end users are concerned, but what about the wider operational components?

At that level, the electronic trading industry and the deliverable FX businesses share common ground, and services are provided by liquidity companies which are veritable giants in the prime brokerage and non-bank liquidity business.

Today, FinanceFeeds spoke to Falgun Khamar, FX Sales Trader at Sucden Financial in order to take a very close look at how large institutional businesses provide service to deliverable FX companies.

Please elaborate on the history of deliverable FX within Sucden Financial and how Sucden Financial gained a presence in this field, and where the company stands against retail providers in London

Sucden Financial is well established in FX and has supplied deliverable/physical foreign exchange for over 30 years. Our clients include money service businesses (MSBs)/commercial FX providers, who in turn deal with companies and individuals wishing to exchange foreign currency.

The market has historically been dominated by a small number of large banks. We identified a gap and over the last few years have increased our efforts to capture a greater market share. Sucden Financial is not a bank and does not compete with retail providers. The technological advances of FinTec payment providers mean we are a strong fit to assist with these firms, especially in their initial growth stages.

Talk us through how Sucden Financial’s Deliverable FX system works, including aspects such as the offsetting of margins in which currency can be bought and sold with no margin requirement, and how the entire business is structured from voice brokerage right through to API connectivity for electronic participants.

We assist money service businesses by being able to provide an all-round service, with pricing from multiple participants. This is accessed via our online trading platform or API, where a client effectively plugs in their own trading system to our infrastructure.

Our deliverable FX offering is designed to make it as simple as possible for our clients, from the moment clients execute a trade online or over the phone, up to when we transfer funds back to our clients.

We offer an all-round service for FX money service businesses with same day payments, forward lines for up to two years and provide the option to drawdown when required.

Our clients are assigned their own account manager. This personal touch helps us to fully understand their needs and requirements to ensure they take full advantage of Sucden Financial’s wide range of capabilities.

What are the main advantages of using Sucden Financial over banks?

One of our many advantages is that forward margins are netted on offsetting trades against all currency pairs. This results in a significant benefit to our clients through freeing up margin requirements and their trading limits. Together with a personal service and tight and deep aggregated prices, our offering is highly attractive.

In conclusion, Andy Fox, Head of FX at Sucden Financial added “Deliverable FX has been an important part of Sucden Financial’s FX offering for over 30 years. We see this as a growth area for the future, fitting in well with the firm’s diversified business model.”