Medibank Private Limited, Australia's largest private health insurer, has chosen Bloomberg's Foreign Exchange (FX) trading platform to manage the exchange rate risk associated with its $2.5 billion global equity portfolio, Bloomberg L.P. announced today.
Medibank Private Ltd. uses the Bloomberg Professional service to research global news, data and analytics to hedge their interest-rate risk. Now, Medibank will also use the system's FXGO function to manage their foreign-exchange risk, execute FX trades and get requests for quotes (RFQs) in spot, forwards, swaps, options and deposits.
"Bloomberg's FXGO is the most efficient way of managing our FX risk. Like a lot of other companies, we were using the phone to trade and waiting for the confirmation call. In the meantime, the markets could move significantly. FXGO ensures that trades happen immediately, the confirmation goes to our back office and sends it to our custodian, all in one step," said Graeme Sala, Medibank's Treasurer.
Tod Van Name, global head of Bloomberg's Foreign Exchange business, said, "Corporate executives all over the world are discovering that the Bloomberg Professional services' FXGO makes managing foreign exchange risk intuitive, seamless and cost-effective. They can get prices from their preferred banks, execute trades and integrate with their order management, risk management and back office systems all on one platform."
Amanda Dobbie, Bloomberg's head of sales for Australia and New Zealand, said, "Companies are hanging up the phone and getting on FXGO because it's simple and they do not have to pay a commission. FXGO is free to both the sellers and buyers of currencies and provides comprehensive pricing."