Standard Bank is believed to be the first bank in Africa to implement systematic FX liquidity management. This strategic move has already improved profitability, reduced transaction costs and reduced risk.
The transition from the first review of existing approaches and client data to being live took place in under a year. During this period, models for liquidity management for various book sizes and currencies were developed and coded in a live environment. This approach has led to a significant reduction of costs and internalisation of flow which will improve services for clients.
Standard Bank has responded to an industry need for systems that effectively manage client flow by collaborating with ClientKnowledge. As a result of this partnership, Standard Bank went from first contact to fully live with systematic liquidity management for a substantial proportion of their trades and volumes in a relatively short period of time. The advisory support and expert technical and quant development was undertaken by ClientKnowledges Managed Models team. By working in tandem with Standard Bank, connections to feeds and their client flow were established.
Market conditions have amplified the need to reduce liquidity risks and maximise strategic financial flexibility. In line with their policy of continuous anticipation and delivery to the needs of their customers, Standard Bank worked with ClientKnowledge to evaluate their liquidity management techniques, assess their suitability for addressing these needs and effectively implement an appropriate liquidity management system. The operational and financial benefits that are enjoyed by both buy-side and sell-side, as a result of this demanding process, cannot be overstated.
Richard de Roos, Director and head of Standard Bank foreign exchange, said that: selecting ClientKnowledge to facilitate this process was an important strategic decision. As experts in the wholesale financial services industry, ClientKnowledge has provided us with unique insight into improving our performance, efficiencies and our profitability.
ClientKnowledge CEO and principal, Justyn Trenner added: Our team worked closely with Standard Bank to implement bespoke solutions that would ensure that their trading and liquidity management systems were market differentiators. We congratulate Standard Bank on going into live trading and liquidity management systems and are pleased to continue to grow our presence in this important field.
Standard Bank is the leading bank in South Africa and is renowned for its extensive operations both within and outside of Africa and, by maintaining a global outlook in all their activities, Standard Bank has secured an industry foothold in the emerging markets sector.
They have also played a key role in the development of the South African economy for over 140 years and are now distinguished by their coveted ability to continuously generate opportunities which lead to new capacities for growth.
ClientKnowledge builds liquidity management and algorithmic trading solutions and uses innovative technology/mechanisms to help banks and other trading firms maximise the value of their franchise. Our expertise in this market sees us consulting to banks, service providers and buy- sides to help them target specific revenue with key accounts and develop a framework that addresses strategic challenges and deliver against their goals.
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