Dynamic Hedging, which has been developed by Kantox, is said to fully automate FX risk management


Image: BNP Paribas joins forces with Kantox to offer the latter’s Dynamic Hedging solution in EMEA. Photo: courtesy of François GOGLINS/Wikimedia Commons.

BNP Paribas has forged a partnership with UK-based fintech company Kantox to jointly offer the latter’s Dynamic Hedging solution to its clients across Europe, the Middle East and Africa (EMEA) region.

Founded in 2011, Kantox specialises in foreign exchange (FX) risk management solutions. The company’s Dynamic Hedging is a software solution, which enables corporate treasurers to completely automate and streamline FX workflows.

The micro-hedging solution by fully automating FX risk management is said to generate greater efficiencies for treasurers.

According to Kantox, Dynamic Hedging offers better visibility over FX exposure and hedges transactions in real-time to mitigate FX risk and improve competitiveness, without any human intervention.

Kantox CEO and co-founder Philippe Gelis said: “We are pleased to jointly offer our award-winning Dynamic Hedging solution to BNP Paribas’ corporate clients. Our solution allows treasurers to automate FX management and leverage micro-hedging to save time and streamline workflows.

“We believe that our offering, combined with the financial strength of BNP Paribas as a banking partner, is an attractive value proposition for their existing corporate client base.”

Dynamic Hedging solution will complement Centric’s products

BNP Paribas said that the solution will complement the product suite available on its digital banking platform Centric.

The French banking giant said that the partnership with Kantox consolidates its commitment to digital growth and transformation and demonstrates an agile approach which combines the strength of the global bank with the latest developments in fintech.

BNP Paribas EMEA corporate rates, FX and local markets co-head Xavier Gallant said: “When it comes to managing foreign currency risk, we are seeing a real need for our corporate clients to improve efficiencies in forecasting their future cash flows, formalising hedging practices and optimising execution through automation.

“BNP Paribas’ partnership with Kantox will offer corporate treasurers in EMEA the opportunity to access a fully automated hedging solution and ultimately improve their treasury processes.”

Last month, the UK fintech company entered into a partnership with Silicon Valley Bank (SVB) to provide FX management software to the latter’s corporate clients across the UK.