FOREIGN EXCHANGE

Whether A Little M a ke s A D i ffe re n c e ?

BANK INTERNATIONAL LIQUIDITY PROVIDER

George is a Treasury Specialist. He buys USD versus PLN on the monthly
basis as his company is importer of goods from China due to 12 month
contract. George exchanges the currency on the basis of standard FX
SPOT agreement with first large polish bank. Today is a last twelfth
trade dedicated for Chinese contract. At 10am he bought 10mioUSD
with the rate of 3,3650. George double-checked the margin that bank
charged him and as per Bloomberg terminal it was in line with previous
trades – interbank rate at 10am was 3,3620 hence the margin was
30pips.
John is a Treasury Specialist. He buys USD versus PLN on the monthly
basis as his company is importer of goods from China due to a 12
month contract. John exchanges the currency on the basis of FX
agreement with large international liquidity provider. Today is a last
twelfth trade dedicated for Chinese contract. At 10am he bought
10mioUSD with the rate of 3,3629. John double-checked the margin
that liqudity provider charged him and as per Bloomberg terminal it
was in line with previous trades – interbank rate at 10am was 3,3620
hence the margin was 9pips.

As a r esult , rate for Geor ge is higher by 3 0 p i p s (0,00 3 0 PLN) than effici e nt As a result , rate for John is highe r by 9 p i p s (0,00 0 9 PLN) than effici e nt bilat er a l
bilat er a l inter b a nk pr ice betwee n globa l partne rs interb a nk price betwee n globa l partne rs

It m eans in particu l a r that Geor ge pay s 3 0 0 0 0 P LN monthly of hidde n fees It means in particu l a r that John pays 9 0 0 0 P LN monthly of hidde n fees.

THE DIFFERENCE IS ONLY 0,0021 PLN BUT JOHN’S SAVINGS ARE 21 000 PLN MONTHLY, WHICH IS 252 000 PLN
YEARLY. A LITTLE MAKES A BIG DIFFERENCE.
Are You Ta k i n g U n n e c e s s a r y R i s k ?

• Global investment portfolios have direct and indirect exposures to foreign currency movements.
• In many cases, adverse movements in the underlying foreign currencies could potentially detract from the alpha generated by the manager.
• Velocity Trade currently works with a number of funds across the globe to mitigate and control the FX risks within their portfolios.
• We can create bespoke, transparent solutions which are tailored to the specific risk-reward parameters of our clients.
• Using our full suite of FX products and market experience, Velocity can help create both active and passive FX strategies
depending on unique needs.
• Whether it be FX management for the fund itself, or the feeder funds for foreign investors Velocity Trade offers solutions to help
manage exposure and reduce the risk associated with currency movements.
• There has been a marked increase in volatility of the FX markets in the last year with the rise of populism and the uptick in terrorist activities.
• With these trends expected to continue into 2018 there has not been a better time to start address the issue of currency exposures.
 Volatility I n Fo re i g n E xc h a n ge M a r ke t s
(i) GBPUSD 1 year (ii) USDMXN (iii) USDRUB 3 year (iv) GBPEUR

Illustration (i) shows the sterling-dollar exchange rate move after the
Brexit vote. This took the British pound to a 30-year low, as it
depreciated by 20%. Moves of this magnitude are rare and caught
many off guard.
(ii) Shows the devaluation of the Mexican Peso (versus USD) following
the US Presidential election.
(iii) Russian Rouble weakness as a consequence of post-Ukraine
sanctions, and a weak oil price.
(iv) is the Euro-Sterling exchange rate, which highlights the period of
euro weakness as a consequence of deflationary fears and quantitative
easing from the European Central Bank.

THE ABOVE CHARTS HIGHLIGHT A BACKDROP OF SIGNIFICANT VOLATILITY IN SOME OF THE MAJOR CURRENCY PAIRS.
WITH THIS IN MIND, NEVER HAS IT BEEN MORE IMPORTANT TO HEDGE FOREIGN EXCHANGE RISK THAN AT THE CURRENT TIME.
„Our global network allows us 24/6 access to the
worlds markets, at the most preferential rates ”
About Ve l o c i t y Tra d e
• Velocity Trade is a team of over 70 experienced financial professionals
providing FX services to institutions including banks, broker dealers,
fund managers and major corporations.
• We are a privately held firm with 2 Global Banks as both significant
shareholders and operational partners.
• Our approach is distinct from the classical foreign exchange model:
o Our size and global footprint gives us the tightest spreads
accessible.
o Our Direct Market Access platform retrieves quotes from over 20
liquidity providers, who compete for flow by providing their best
price.
• Hence, our clients are offered access to the best rates in the market.
Our Advantage
• No bias, preferential execution or pricing.
• A different model of foreign exchange provision.
• Not tied to any one bank line or prime broker.
• Deep Liquidity for large trade sizes.
• Global presence with 24/6 support.
• Fast & efficient settlement capabilities.
• The best service provision in the market.
 Regulation Ve l o c i t y Tra d e G ro u p

• In London, Velocity Trade International is FCA regulated (UK registered number 497263) and registered as a Money Broker with
Her Majesty ’s Revenue and Customs ( HMRC).
• In APAC, Velocity Trade Limited has an Australian Financial Services Licence from ASIC (Australian Securities and Investment Commission)
and is registered with AUSTRAC and an ASX member. We are also registered as a Financial Service Provider in New Zealand.
• Velocity Trade Financial Services is an Authorized Financial Service Provider under the South African Financial Services Board ( FSB).
• In Canada, Velocity Trade Capital is an IIROC regulated broker dealer; participating organization on the TMX, IIROC registered
and a member of CIPF. Additionally, Velocity Foreign Exchange Services is a FINTRAC member.
• Globally our trading venues are audited by KPMG and Grant Thornton.
 “Our offering comprises Direct Market Access to
Direct Market Access
over 20 banks & non-bank institutions”
 Our O ffe r i n g
Why Ve l o c i t y Tr a d e ?
• Foreign Exchange is traditionally transacted directly with
banks and brokers, in an “OTC ” (Over The Counter)
fashion.
• The bilateral nature of these transactions allows the bank
or broker to execute at uncompetitive rates, often with
hidden fees. Foreign Exchange markets are amongst the
most opaque in this respect.
• “Marking to Market ” is particularly tricky given that the
‘market ’ can be different for separate participants.
T h e Wa y We Do Business
• Velocity Trade provides a unique solution to these issues.
• Our global network and strong positioning in the market gives
us direct lines to many of the worlds leading banks and
financial institutions.
• Our offering comprises Direct Market Access to these
institutions, providing clients with to pricing from over 20
banks & non-banks.
• We have a high quality, secure and proven physical
settlements infrastructure supported by our global offices
around the clock.
• The end result is the most efficient access to the most
competitive market rates each & every time you trade.
 “Our experience and network in the worlds most
Our Products
l i q u i d m a r ke t h a s l e d Ve l o c i t y Tra d e t o a s s e m b l e a
suite of capabilities, best execution and analytic
tools. All managed by a discreet team of finance
professionals across the globe.
Our Pro d u c t s

• Velocity Trade offers pricing in over 50 different currencies.

• We offer competitive pricing across the full range of FX products:
o FX spot & forwards
o FX swaps
o NDF’s
o Vanilla & Exotic Options

• Velocity Trade provides pricing through multiple trading venues for

client convenience:
o 360t
o Hotspot
o LiquidX
o Bloomberg
o Email
o Telephone
Velocity Tra d i n g P l at fo r m

• For our high-volume clients, Velocity Trade offer a platform which aggregates
bid/offer FX quotes into one centralised location:
o Ensuring that you are able to buy/sell currencies at the most attractive prices
whenever required.
• This allows execution of all FX needs with one relationship, eliminating the
logistical & credit constraints encountered when facing multiple banks.
• Our offering allows access to the worlds primary financial institutions all in a single
interface.
• The platform can be used to view “ streaming rates” to monitor the market in real
time. The screen can be fully configured to display size of trade, currency pairs and
tenors.
• To mitigate risk, trading constructs can be preconfigured such as one way pricing,
maximum trade size and forward tenor.
• The platform can allow you to create a bespoke hedging strategy with the
optionality of ranging from being fully passive to more active, at your request.
 “We pride ourselves on providing full transparency
Global Multi Asset Services
and the very best pricing to our clients”
 Multi-Asset Services
DELIVERABLE & MARGIN FOREIGN EXCHANGE
• Deliverable Foreign Exchange forms the cornerstone of our offering.
• We also provides Margin FX trading and Prime of Prime services to
professional market participants.
• Our institutional backing allowed us to develop a highly structured and
efficient infrastructure providing deep, bespoke, top tier liquidity.
• Our service is highly monitored and fully transparent from end to end.
EQUITIES
• Velocity Trade provides Direct Market Access to 54 Equity Markets
globally.
• Experience Sales Desks throughout our network to work order flow
anonymously.
• This is offered through industry leading platforms.
• Custody offered through Tier 1 banking relationships if required.
PHYSICAL METALS
• Velocity Trade provides solutions for precious metals trading including
offtake, physical delivery and hedging.
• This service facilitates effective trading and risk management, through a
comprehensive platform.
• This services the entre commodity supply chain from mines through to
end users.
SPECIALIST BROKING
• The merchant capital group ( Velocity Trade Capital ) was formed in 2016
to consolidate and develop deal flow arising from the positioning of the
firm in the worldwide capital markets
• We act as an intermediary, providing introductions to a selection of
private placement and direct equity opportunities.
• Our clients include financial institutions, corporations, family offices as
well as HNW/UHNW investors.