The Use Case: What are the industry pain points that we’re solving?
Many companies issue debt instruments in different markets and currencies depending on the liquidity, making a currency swap an inseparable part of front-office treasurers’ daily responsibilities.
They either negotiate a currency swap directly with an intermediary at the same time as debt characteristics or set up a swap right after the debt instrument is created.
In either case, treasurers need to manually enter swap characteristics into a forex platform and they often need to do this for numerous deal tickets simultaneously. Understandably, this process is time-consuming as well as prone to human mistakes and fat-finger errors that can account for the loss of profits for companies.
In order to eliminate this common problem and improve the currency swap process for debt market players, Onbrane has sought partnerships with forex platforms. Resultantly, we came up with the solution that allows us to automate this use case and ensure an STP process between debt issuance and currency swap.
Our Solution
Through the REST API, Onbrane can be directly connected to forex platforms used by the debt market players.
Here’s how our solution works:
At any point of your commercial paper negotiation on Onbrane, you can see the swap levels on the different currencies, negotiate packages with your intermediaries or initiate a swap request as soon as the issuance is done.
When setting up a forex swap on Onbrane, you can configure all the variables: choose any currency you want, swap the entire amount of your issuance or just a portion of it, etc.
Additionally, we set up automatic checks to help you avoid common fat-finger errors. For instance, the Onbrane platform won’t let a swap request through if the requested amount is greater than the issued amount in the initial currency.
All the details of the currency swap are directly sent from Onbrane to a forex platform, which then takes care of the swap execution: no manual re-entry is required.
Resultantly, you minimize human errors and save time for better cash management.
Just like in any other case with our debt negotiation and issuance platform, all your actions during a direct forex swap are recorded and exportable in any format to ensure full compliance and a clear audit trail.
Get on board with the future of debt markets today
A direct forex swap is merely a cherry on top of the Onbrane cake! Bring ease and simplicity to every step of your debt issuance – Contact us for a demo.
