The INTL FCStone group of companies offers a broad array of professional services and access to the global foreign exchange markets for commercial and institutional clients. Experienced FX teams in London, Sao Paulo, NY and Chicago provide recognized advisory, execution and clearing services in many tradable currency pairs and derivative instruments.
INTL FCStone’s Financial Risk Advisory Group brings a consultative approach to clients’ FX risk management needs, including exposure analysis and identification, strategic planning and hedge design, hedge execution, position reporting & clearing, and ongoing risk management. With customers around the world in the Americas, Europe, Australia, Asia, Africa and the Middle East, INTL FCStone is a trusted source, relied upon for its experience and global perspective.
Broadly speaking, non-U.S. entities typically have the greatest exposure to FX risk since the U.S. dollar is used for pricing and invoicing the majority of world trade. Entities outside the U.S. who produce goods valued and/or denominated in dollars (such as grains, other foods, energy, mining output, manufactured goods, etc.) or who have dollar denominated input costs (such as energy, fertilizer, metals, etc.) are required to continually convert U.S. dollars back to their domestic currency and vice versa. Additionally, dollar loans made around the world to non-U.S. entities can represent a significant risk exposure. Due to the daily volatility in the FX currency markets, conversion risk for income, interest payments, assets and liabilities can complicate budgeting, planning, and business forecasting. In turn, this can lead to poor returns and operating losses. U.S. entities doing business abroad also can create payable or receivable risk if they are not paying or invoicing in U.S. dollars, and translation risk can arise if investments are made outside the U.S. without counter-balanced liability exposures.