3 is the magic number
29 June 2023
MillTechFX took home three prestigious awards in June, highlighting the success of our independent FX-as-a-Service offering in significantly reducing both FX costs and operational burdens associated with FX execution and hedging requirements.
We are very pleased to have won:
- Best FX Provider at the Hedgeweek and Private Equity Wire US Credit Awards
- Best e-FX Solution for Corporates at the FX Markets e-FX Awards
- Startup of the Year at the Business Awards UK
We were also a finalist in the Best FX Trading Platform and a runner-up in the Startup of the Year categories at the Financial News Trading and Technology Awards.
Eric Huttman, CEO of MillTechFX, commented: “The award wins and nominations across a number of client industries are testament to our team’s hard work and validate progress we have made to level the playing field in the FX market.
“Fund managers and corporates continue to overpay for their FX needs due to an inherent lack of transparency and inconsistent pricing in the FX market. We are tackling these issues head on by automating the entire FX workflow and ensuring transparent best execution – saving clients time and costs.
“We have just scratched the surface of our global ambitions and so look forward to building on our success achieved so far.”
Increasing demand for MillTechFX’s FXaaS offering
MillTechFX has seen a large increase in client demand with monthly revenue and committed client numbers rapidly increasing over the past six months.
This has been driven by increasing recognition of the importance of FX risk management for senior-finance decision makers across the globe combined with their desire for a transparent, operationally efficient solution.
Many mid-sized asset managers and corporates continue to significantly overpay for their currency execution and hedging requirements. This is typically because of two long-standing problems that they face when it comes to FX:
Lack of transparency - Transaction costs can be hidden in the FX spread, typically calculated as the difference between the traded rate at the point of execution and the mid-market rate at that time. Moreover, corporates tend to only work with a small number of counterparties for their FX due to the operational complexity of setting up multiple banking relationships, making it harder for them to compare prices.
Inconsistent pricing - Banks and brokers tend to reserve their most competitive rates for institutions that transact the highest volumes, meaning small and mid-sized corporates struggle to get the best possible deal. This is no secret. The European Central Bank produced a report that found that banks were overcharging their smaller corporate customers for FX services with hedging rates as much as 25 times higher than for their larger clients.
MillTechFX is levelling the playing field for these firms by digitising the FX process from initial price discovery right through to reporting at the end of the trade lifecycle. The benefits of this include:
- Easy and quick onboarding – Rather than spending months (even years) setting up multiple FX facilities with different counterparties, firms can sign up to MillTechFX’s multi-bank marketplace and transact within weeks with multiple counterparty banks.
- Best execution and hedging management – Firms benefit from multi-bank access without having to manage multiple relationships and processes. Firms can transparently compare and execute FX rates from multiple providers on a single marketplace and ensure best execution with a simple click of a button.
- Cost savings - This model has been proven to save clients up to 70% on their execution costs.
- Transparency – MillTechFX offers a fixed fee service, including third-party Transaction Cost Analysis (TCA) to ensure total cost transparency.
MillTechFX is enabling its clients to have access to live rates from multiple banks and execute at the best rate available from its counterparty banks, all whilst reducing the operational burden traditionally associated with this kind of market access.
Get in touch today to find out more.