Warburg full service business-to-business case study

UBS Warburg, a business group of UBS AG, recently launched Fx2B full service business-to-business (B2B) foreign exchange transactional solution.

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By  Peter Conmy Published  March 28, 2001

UBS Warburg, a business group of UBS AG, recently launched Fx2B full service business-to-business (B2B) foreign exchange transactional solution.

UBS AG, headquartered in Switzerland, is a provider of financial services throughout the world, with an extensive network of international branch offices serving a list of corporate, institutional, sovereign and multi-national clients.

Fx2B is a two-way application programming interface (API) that allows users to connect their treasury, e-commerce, or e-procurement systems with UBS Warburg’s industry leading foreign exchange infrastructure.

"Growing cross-border flows of goods and capital is bringing foreign exchange risk more into the spotlight," explains Fabian Shey, managing director and Head of e-Commerce for UBS Warburg’s Treasury Products division. "The challenge facing banks, brokers and corporate treasury departments is how to effectively manage this increased currency risk. Our challenge is to assist clients and partners in meeting these challenges with leading technical solutions such as Fx2B."

Fx2B offers efficient FX pricing, execution and risk management, and is already being used by other UBS business groups, and UBS Warburg clients on a daily basis.

Via a single Fx2B connection, partners can link their own front-office systems directly to UBS Warburg’s high-end global foreign exchange infrastructure. Fx2B provides users with real-time prices and advanced on-line trading facilities for spot, forward, and foreign exchange swaps in whatever environment the client chooses. The scalability of Fx2B makes it beneficial to both small and large businesses, and also allows it to grow with a client’s business.
Underpinning the Fx2B API is a continuously operating e-flow engine, supplying live, dealable prices to UBS Warburg business partners, 7x24x365. Transactions generated through Fx2B are captured electronically and seamlessly processed by UBS Warburg, with confirmations generated automatically. An integral logging feature then stores a complete history of trading activity.

Pricing is transparent and is established in advance by a service level agreement that is based on prevailing reference rates. Individual transactions are no longer negotiated between UBS traders and their clients, but are processed automatically through Fx2B. Additionally, with Fx2B’s advanced encryption technology, clients can be assured of the highest possible level of security.

"Direct access to price information creates total transparency for every transaction, and brings the trading floor directly to the clients’ desktops," says Guido Kurmann, executive director of UBS Warburg’s e-commerce business development.

"All prices are live and updated in real-time, allowing clients to react immediately to market changes. And with our e-help desk, which is available 24 hours a day, 7 days a week, the consistency and support of Fx2B are unrivalled."

Also the Fx2B solution greatly reduces the cost of maintaining the infrastructure of an expensive dealing room can be greatly reduced UBS Warburg creates a virtual dealing floor in the bank’s environment of choice. "The partnership with MKI will offer Fx2B clients the option of customising the link between their own front- and back-office systems and the bank’s FX business solution using MKI’s Meridian Middleware," adds Kurmann.

Adds Kurmann, "Meridian achieves integration for Fx2B by putting the interface between different systems onto a common platform. This enables Fx2B partners to have the flexibility to link their own front- and back-office systems to UBS Warburg’s FX systems quickly and easily, as well as giving the bank’s business partners the flexibility to choose their own systems." adds Kurmann.

"MKI’s Meridian Middleware provides easy to use integration technology, which combined with their banking knowledge and software expertise makes MKI an ideal technology partner for B2B e-commerce solutions." Fx2B users will be able to enhance their business by taking advantage of a fully automated foreign exchange solution with an unparalleled level of control, in partnership with UBS Warburg, a leading player in global foreign exchange markets.

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