RBS finds FX calm with new currency protection system

Royal Bank of Scotland (RBS) has created a new hedging technology to cope with foreign exchange volatility, which spiked earlier this year. The structure, which goes by the name of Quampo, blends the features of quanto technology, a currency hedged investment, with compo, where FX exposure is not hedged.

Quantos are typically used to convert investments with foreign market exposure back into payout currencies at a fixed rate, but became too expensive after forex volatility went up. “Buyers of

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Stemming the tide of rising FX settlement risk

As the trading of emerging markets currencies gathers pace and broader uncertainty sweeps across financial markets, CLS is exploring alternative services designed to mitigate settlement risk for the FX market

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