Abstract
Hedging foreign currency risk is a central task for treasuries of multinational corporations. Traditionally, it has strongly relied on voice-based broking. With the advent of Internet technology, online platforms for foreign exchange trading emerged offering corporations a single point of access to the liquidity of a global market. However, online marketplaces only become truly valuable if seamlessly integrated into the corporation’s hedging process. This paper evaluates the strengths and weaknesses of multi-bank online marketplaces, identifies the demanding and complex integration challenge and presents a Web Services-based straight-through processing implementation as a manageable approach to integrate online marketplaces and corporate treasury systems1.
This work reflects experiences and lessons learned from the Corporate Financial Portal project, a cooperation between the Bayer AG, the Chair for Information Management and Systems Prof. Dr. Christof Weinhardt and the Chair for General Business Administration, International Management, Accounting and Auditing Prof. Dr. Martin Glaum. The primary project objective is to identify und provide relevant financial services and information through a single point of entry within the corporate intranet. Thus there is a strong focus on application and process integration as data from various sources and channels has to be integrated.
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Kiet Vo, H.T., Weinhardt, C., Wojciechowski, R. (2005). Integration of Electronic Foreign Exchange Trading and Corporate Treasury Systems with Web Services. In: Ferstl, O.K., Sinz, E.J., Eckert, S., Isselhorst, T. (eds) Wirtschaftsinformatik 2005. Physica, Heidelberg. https://doi.org/10.1007/3-7908-1624-8_25
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