Deutsche Bank e-commerce
A segmentation approach to FX
Tailored
solutions to
tailored
requirements
One-off high value
Transactions
High
Value Drivers: Best execution is the priority,
remains in the relationship channel, selecting
one bank counterparty with sufficient liquidity
to manage the transaction with minimal market
impact. Algorithmic Trading can play a role.
Active Trading
Treasury
Value Drivers: Fast
execution is the
priority. Online
services/
functionality in
Autobahn FX
Ticket
Notional
Value
Core day to day treasury
transaction management Value
Drivers: Best price, speed of
execution, netting and allocation to
relationship banks. Straight
through processing to reduce
costs. Autobahn Treasury
“under the radar” Transactions
Value Drivers: Low cost, integrated
processing, transparent and consistent
pricing. Allocation across multiple bank
counterparties adds costs, reduces
netting benefits and has low value to the
banking partners as well. Best serviced
via a single bank relationship – FX4Cash
Low
High
Number of Tickets
Low
Deutsche Bank: The World's Best FX Bank
Euromoney Survey 2010
DB has 26.4% market share in
electronic FX trading
Market Share
18.06%
11.30%
11.08%
7.69%
6.50%
6.35%
DB
UBS
Barclays
Citi
RBS
JP Morgan
The challenges keep on coming
• Liquidity management
• Centralisation
• Volatility in markers and in forecasts
• Counterparty risk / credit risk
• Optimisation of cash – pooling and effectively managing cash
 Globalisation - operating a 24 hour treasury centre, operational risk
 Benchmarking a treasury’s performance
 Reducing per ticket cost of execution
 Maximising netting across the group of companies/exposures
 Accounting concerns - IAS39, GAAP, FASB
 Technology – opening more doors
 European Payments Directive initiatives
 Legal issues as more currencies join the EURO
What is FX4Cash?
 A cross-currency payment solution
– Enable you to make and receive payments in 125 currencies
without having to maintain foreign currency accounts
 A streamlined process
– Allow you to handle small value, repetitive cross-border payments
efficiently and cost-effectively
 A strong value proposition
– Combine Deutsche Bank’s leading Foreign Exchange (FX) offerings
and payment capabilities
 Receivables
– Convert incoming FX payments into the base currency of your choice
– Credit to your account at DB or with another bank
 Active Client Funding
– Use FX4Cash, without having accounts in DB
– Client sends funding directly from their acc in another bank to DB LDN
Show Me How to…
1. Format and Identify my SWIFT Message
How to Specify Payment Amt and Currency
How to Identify FX4Cash Payments
 Identify the foreign currency and amt
 Send payments directly to FX4Cash
SWIFT address: DEUTGB2LF4C
– Commonly used if you received a Daily Rate
Sheet and calculated the conversion amount
– Currency and amount to be supplied in Field 32A
– Example: :32A:080402GBP1300
– Client is debited for GBP equivalent amount from
the base currency account
– Standard SWIFT Method
 Identify the base currency and amt
– When you only know the base amt and currency:
– :32A: 080402GBP0,
– :33B: EUR1000,
– Indicates the foreign currency amount to be paid
to beneficiary is GBP equivalent of EUR1000.
- OR  Send payment to the same BIC address
you use for EUR, USD or GBP payments
(e.g. BKTRUS33 for USD) and include
the following codeword:
 Field 72: /DBF4C/
Show Me How to…
2. Book LIVE FX Rates for Outgoing Payments
FX4Cash supports the following 125 disbursement currencies
ALL
DZD
AOA
ARS
AMD
AUD
BSD
BHD
BDT
BBD
BYR
BZD
BOB
BAM
BWP
BRL
GBP
BGN
BIF
KHR
CAD
CVE
XOF
XAF
CLP
CNY
COP
CDF
CRC
HRK
CZK
DKK
DJF
DOP
XCD
EGP
ERN
EEK
ETB
EUR
FJD
GMD
Albanian Lek
Algerian Dinar
Angola Kwanza
Argentine Peso
Armenian Dram
Australian Dollar
Bahamian Dollar
Bahrain Dinar
Bangladesh Taka
Barbadian Dollar
Belarusian Ruble
Belize Dollar
Bolivian Boliviano
Bosnia Herzegovina Marka
Botswana Pula
Brazilian Real
British Pound
Bulgarian Lev
Burundian Franc
Cambodian Riel
Canadian Dollar
Cape Verdean Escudo
Central African States CFA Franc BCEAO
Central African States CFA Franc BEAC
Chilean Peso
Chinese Yuan
Columbian Peso
Congolese Franc
Costa Rican Colon
Croatian Kuna
Czech Republic Koruna
Danish Krone
Djiboutian Franc
Dominican Peso
Eastern Caribbean Dollar
Egyptian Pound
Eritrean Nakfa
Estonian Kroon
Ethiopia Birr
Euro
Fijian Dollar
Gambian Dalasi
GEL
GHS
GTQ
GNF
GYD
HTG
HNL
HKD
HUF
ISK
INR
IDR
IQD
ILS
JMD
JPY
KZT
KES
KRW
KWD
LVL
LBP
LSL
LRD
LTL
MKD
MGA
MWK
MYR
MRO
MUR
MXN
MNT
MAD
MZN
NAD
NPR
ANG
NZD
NIO
NGN
Georgian Lari
Ghanaian Cedi
Guatemalan Quetzal
Guinean Franc
Guyanese Dollar
Haitian Gourde
Honduran Lempira
Hong Kong Dollar
Hungarian Forint
Icelandic Krona
Indian Rupee
Indonesian Rupiah
Iraqi Dinar
Israeli Shekel
Jamaican Dollar
Japanese Yen
Kazakhstan Tenge
Kenyan Shilling
Korean Won
Kuwaiti Dinar
Latvian Lats
Lebanese Pound
Lesotho Loti
Liberian Dollar
Lithuanian Litas
Macedonian Dinar
Malagasy Ariary
Malawi Kwacha
Malaysia Ringgit
Mauritanian Ouguiya
Mauritius Rupee
Mexican Peso
Mongolia Tugrik
Moroccan Dirham
Mozambique Metical
Namibian Dollar
Nepalese Rupee
Netherlands Antillean Guilder
New Zealand Dollar
Nicaragua Cordoba
Nigerian Naira
NOK
OMR
PKR
PGK
PYG
PEN
PHP
PLN
QAR
RON
RUB
RWF
STD
SAR
RSD
SLL
SGD
SBD
ZAR
LKR
SRD
SZL
SEK
CHF
XPF
TWD
TZS
THB
TOP
TTD
TND
TRY
UGX
AED
USD
UYU
VUV
VEF
VND
WST
ZMK
Norwegian Krone
Omani Rial
Pakistan Rupee
Papua New Guinea Kina
Paraguay Guarani
Peruvian Nuevo Sol
Philippine Peso
Polish Zloty
Qatari Rial
Romanian Leu
Russia Rouble
Rwandan Franc
Sao Tome & Principe Dobra
Saudi Arabian Riyal
Serbian Dinar
Sierra Leone Leone
Singapore Dollar
Solomon Islands Dollar
South African Rand
Sri Lanka Rupee
Surinamese Dollar
Swaziland Lilangeni
Swedish Krona
Swiss Franc
Tahitian Franc
Taiwanese Dollar
Tanzanian Shilling
Thai Bhat
Tonga Pa’anga
Trinidad & Tobago Dollar
Tunisian Dinar
Turkish New Lira
Ugandan Shilling
United Arab Emirates Dirham
United States Dollar
Uruguayan New Peso
Vanuatu Vatu
Venezuelan Bolivar Fuerte
Vietnamese Dong
West Samoa Tala
Zambia Kwacha
How Does FX4Cash Payment Work?
Live Rates
AutoConvert or
Manual Trade
Fixed Rates
Customer
2
Base Currency A
1
Client sends FX4Cash
Payment Instruction
(via db-di, SWIFT or
H2H)
DB debits client’s base
currency account
3
Execute FX
Trade(s)
Beneficiary
Credit Currency B
DB releases
instructions
for payment
processing
4
Payment Systems
5
DB pays bene
via Wire, ACH
or Draft in
local currency
How Does Active Client Funding Work?
Live Rates
Fixed Rates
Customer
Base Currency A
2
1
Execute FX
Trade(s)
Client sends FX4Cash
Payment Instruction
(via db-di, SWIFT or H2H)
Credit Currency B
DB releases
instructions
for payment
processing
Customer sends a
cover payment for its
today´s trades.
The cover payment
can be sent from any
client´s account,
outside DB
Beneficiary
4
3
Payment Systems
5
DB pays bene
via Wire, ACH
or Draft in
local currency
What You Need
vs.
Customer Needs
 Pay beneficiaries almost anywhere in the
world
What We Offer
dbFX4Cash Solutions
 Cover 125 disbursement currencies
 Consolidate foreign currency accounts
 Keep a single base currency account to fund
payments in other currencies
 Receive fixed rates for your FX payments
 Send daily rate sheet at your specified time in
the way you want to receive it
 Know your expected FX costs before you
initiate payments
 Book one large FX trade to support multiple
payments
 Access online streaming rates and seamlessly
link FX trades to payments
 Offer pre-deal online and flexible options for you
to remit payments
Customer Benefits
 Partnering with a global provider that offers all-in-one FX and payment services
 Improving efficiency via a streamlined process of FX dealing, settlement and payment
 Saving costs by consolidating accounts, eliminating idle balances, and aggregating FX trades
 Mitigating risks of operating local currency accounts and exposure to currency volatility
 A single window to track all your FX payments with full audit trail
 One point of contact for payment and FX inquiries
Benefits of autobahn®FX
• Quick and easy access to deep market liquidity
• Any size of deal possible (up to your available credit/margin limit)
• Commission-free dealing
• Consistent, reliable currency and precious metal prices
• Transparent view of the market from your office, home or while travelling
• Dedicated 24-hour client support team: contactable by chat, email and telephone
• 24-hour availability 6 days a week: you can trade even when your local market is closed
www.autobahnfx.db.com
Features of autobahn®FX
 Over 200 currency pairs
 Dynamic Pricing on Spot: prices adjust according to size of trade
 Straight Through Processing (STP)
 Email Trade Confirmations can be sent to multiple destinations for
all Spot, Outright, Swap and Option transactions
 Post trade operations available on demand: aggregation, rolls and
allocation
 Application Programmable Interfaces (API): deliver streaming prices
24 hours a day
 Laddered Pricing
 FX indices are offered for a selection of currencies and baskets
 Customisable Trade and Expiry Blotters
 Streaming Pricing on Options as well as Spot, Outrights and Swaps
 Exceptional range of Non-Deliverable Forwards (NDFs) available
 Full Options pricing capabilities
autobahn®FX
Spot Liquidity Window…
Page 14
… with Fast Orders
Option Calculator – Vanillas and Strategies
Page 15
autobahn®FXAlgo
 New trading tool allowing you to control the slicing, timing and fills of large orders with
much greater precision and transparency than has previously been possible
 Allows you to decide in advance exact order size and spreads
 Monitor your order and stop, pause or amend strategies at the click of a button
Introduction - autobahn®Treasury
 autobahn®Treasury is the all in one solution for the automation and
optimisation of FX and MM transactions between group treasuries and
their subsidiaries.
 Corporates can easily manage and centralise internal treasury
workflows with and for their subsidiaries.
 With autobahn®Treasury, corporates are able to capture trades
internally with subsidiaries and directly with Deutsche Bank. Internal
trade requests from subsidiaries can be quoted automatically based on
Deutsche Bank rates with optional mark-up or manually.
 Treasury has the ability to take internal trades into the groups currency
position or to hedge them automatically one to one with Deutsche Bank.
Currency positions can be hedged manually or automatically.
autobahn®Treasury Modules
Trade Blotters & ToDo List
FX Netting/Position by CCY
and Total (incl. P&L and NPV)
FX & MM trade capture
Administration & Tools
FX & MM confirmation tool
FX4Cash Client Website
Currency
Guide
Demos
Latest News
Contact details
Brochures
www.db.com/fx4cash
Username: FX4Cash
Password: deutsche
FX4Cash Smart Convert
 Smart Convert is…
– A new feature of FX4Cash
– An automated conversion of USD, EUR and GBP payments into the local
currency
– An easy service to implement, requiring little change by your bank
– A new approach for your bank to earn revenues
 How does it work?
– Your bank sends eligible USD and/or EUR payments to an usual SWIFT
address (DEUTDEFF for EUR, BKTRUS33 for USD)
– DB will determine if payment can be converted to local currency based
on your parameters:
– Amt thresholds, Country, Bene, B/O
– DB will book a trade and on settlement , make the payment in local
currency (Same day, Next day and Spot)
– Your bank has the opportunity to add a mark-up to our core rate
– Payment is effected in local currency to beneficiary
Page 21
The Details: Flow and Override Controls
Flow Controls
 Available currencies
–
–
Set-up for each client
If BBK field (57) is a valid country (5th and 6th characters),
Smart Convert will convert to respective currency
 Amount thresholds
–
–
–
Ability to set minimum and maximum thresholds
Minimum should not be less than USD/EUR500
Maximum should generally not be greater than USD/EUR
500k
 Other Inclusion options:
–
–
Any field in payment message
For example, the client may want to set-up Swiss Franc for
only two beneficiary banks
Override Controls
 Payment Details
–
–
–
–
Beneficiary
By Order Party
Beneficiary Bank
Reference
 Wildcards available

Other Overrides
–
Page 22
Intercompany transfers (Field 23=INTC)
The Details: Managing Reconverts
 Reconverts
– Reconverts occur when we receive a complaint
from the bene or our client about the conversion
and we are requested to pay in the original
currency
– Once funds are returned, FX4Cash Investigations
will reconvert the paid funds to the original
currency using the rates for that day
– The payment is then re-effected in full amount to
the beneficiary in the original currency
– Your bank has the option of automatically setting
the beneficiary on an override pattern or you can
review individually
– When the conversion to the original currency
occurs, there may be a gain or loss from the
conversion.
– We will ensure special arrangements with your
bank to manage this gain or loss.
Page 23
Questions and Answers – Smart Convert


Q: Is there a legal agreement needed?
A: Yes, a slim 3 page agreement is required


Q: Why do we limit the currencies to 39?
A: We limit the currencies to those provided by DB
London where we do not face restrictions in the
payment or in their returns


Q: How do we manage returns or complaints?
A: Once we receive a return, we will re-effect the
full original currency amount. The potential gain or
loss can be borne by the customer or the sales
manager


Q: How do I get implemented?
A: The same implementation process used for
FX4Cash is used for Smart Convert. Once the setup form is completed, a client kick off meeting will
be scheduled.
Page 24


Q: Can our bank use standard FX4Cash as well as
Smart Convert?
A: Yes. However, we currently cannot differentiate
the markup or client margin between the two
services unless the client opens a separate
account


Q: What are the special formatting requirements?
A: There are none.