Securing Risks: Why Corporate Clients Should Act Now

Mr. Paul why is comprehensive risk management so crucial for corporate clients engaged in international business?
Our corporate clients are increasingly exposed to uncertainties in the financial markets. Exchange rates, commodity prices, and interest rates fluctuate significantly. The COVID-19 crisis, the war in Ukraine, and the new trade policies of the USA are prominent drivers of this rampant market price volatility. Proactive and comprehensive risk management protects our clients from these risks, allowing them to focus on their core business.

How does Commerzbank assist corporate clients in managing commodity price risks?
Commerzbank places the needs of our corporate clients at the center of our approach, as pricing certainty is crucial for businesses. We offer a comprehensive range of hedging solutions, from energy to agricultural products and industrial and precious metals. Naturally, our offerings also include hedging solutions for emission certificates—both mandatory European Union Allowances (EUA) and United Kingdom Allowances (UKA), as well as Voluntary Emission Reductions (VER) certificates. Due to the dynamic developments in this area, we continually expand our offerings—currently focusing on hedging solutions in the electricity and gas sectors.

What advantages does Commerzbank's currency management offer its corporate clients?
Whether it’s simple currency conversion or customized derivative structures, we provide a wide range of comprehensive, security- and opportunity-oriented solutions in all major currency pairs. This includes excellent research offering and real-time foreign exchange trading. Our corporate clients can access our services through their preferred digital channel, regardless of the time of day or which time zone they are in. Our pricing is highly competitive, as evidenced by our outstanding rankings on major trading platforms and the regular accolades our FX products receive. On platforms like 360T, we are consistently ranked in the top three for EMEA.

What is the FX Live Trader, and what advantages does it offer corporate clients?
We are proud of our FX Live Trader. FX Live Trader is a modern web technology that allows our corporate clients to trade in real time and access over 100 currency pairs. The integration of research and the use of mobile devices further enhance usability.

How can corporate clients make the most of currency management?
Our corporate clients have various options regarding how they wish to manage their currency transactions. Whether they desire direct personal contact with a product specialist, want to use our own trading platform FX Live Trader, trade through multi-dealer platforms, or engage in direct API trading— all options are available. Our clients can choose the method that best suits their needs.

Is this also true for international corporate clients?
Absolutely! In addition to the major trading platforms, the international rollout of FX Live Trader has also been successfully initiated in continental Europe. We continually expand the list of countries where FX Live Trader is available.

What are the major challenges in risk management for corporate clients, and how does Commerzbank address these?
As mentioned earlier, our corporate clients are currently often confronted with external uncertainties due to market volatility. Therefore, it is particularly important for us to present solutions that are tailored to those changing market conditions and can provide individual support to our corporate clients. This currently means expanding our product offerings in European electricity and gas contracts or introducing new currency pairs. At the same time, we are digitizing our client interface with the latest technology, such as digital onboarding in the FX area.

What trends or future developments do you foresee in risk management for corporate clients?
Digitalization continues to advance, and as such, we are also developing the interface for our clients based on their needs. Specifically, this means the use of AI technology and the expansion of digital process optimization. The topic of sustainability is also advancing dynamically and will continue to shape our markets. Therefore, in commodity trading, we are not only expanding hedging solutions in the field of energy but also increasing our activities in trading emission certificates, for example, concerning the Carbon Border Adjustment Mechanism.

What would you like to pass on to Commerzbank's corporate clients regarding risk management?
Financial markets have become significantly more volatile. My advice would be to take advantage of the expertise of our product specialists and our tailored solutions. Be proactive in your risk management to gain planning certainty. This will enable you to focus more on your core business.