New partnerships for new solutions

We’ve partnered with Lumint to provide institutional investors with an innovative solution for better and more transparent execution.

16 Dec 2022 . 3 min read

We’re pleased to announce the launch of the passive currency hedging service, which will add a new foreign exchange solution to institutional investors. Our goal is to bring together end-to end-automation, and as an Agency FX provider, trade on behalf of clients and provide greater execution transparency.

We recently partnered with Lumint Corporation, a US-based fintech specialising in currency management services. We’re bringing to the market an innovative solution to automate the administration of passive currency hedging programmes - including share class, portfolio, look-through and index replication strategies, supported with real time performance attribution and reporting.

Best execution and increased visibility

Lumint’s software gives us the ability to operate highly complicated passive currency hedging mandates. It’s supported by the automation of data processing and system integration into both our Agency FX, and principal market-making execution services. By combining these tools, we’ll bring transparency and clarity to services that are often challenging for customers. With TCA (Transaction Cost Analysis) from New Change, our Agency FX offering gives customers a powerful new choice in their pursuit of better FX execution.

Previously, customers may have been unable to review costs and charges associated with FX hedging transactions with their custodian banks. We aim to offer customers a solution that removes any opportunity for price discrimination with their existing service providers and focus on providing maximum transparency during their FX execution cycle.

Reducing exposure at optimal efficiency

Passive currency hedging aims to reduce or remove currency exposure over a pool of assets caused by exposure to international assets and fluctuating currency rates. It is an essential tool for any institutional investor who has foreign assets and hedges currency exposure, which until now, has been a very manual and time-consuming process. The service will also allow customers to benefit from both enhanced operational cost savings and to reduce any associated operational inefficiencies.

Nick Pedersen, Head of Digital, NatWest Markets, said: “We are thrilled to be one of the first banks to combine agency and principal execution solutions with passive currency overlay. Our partnership with an emerging fintech like Lumint allows us to tailor technology solutions and remove FX hedging challenges for our customers.”

Alex Dunegan, CEO of Lumint, said, “The Lumint team is very excited to be working with such a respected organisation, and to be a part of NatWest’s effort to continuously offer innovative services to their clients.”

About Lumint

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New partnerships for new solutions

Best execution and increased visibility

Reducing exposure at optimal efficiency

About Lumint

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