Neo Launches MiFID II Regulated FX Management Alternative for Corporates

Neo has announced the launch of its foreign exchange (FX) management solution for European corporates regulated by the Spanish market authorities since November 2018.

The multi-asset solution offers access to FX spot, deliverable & non-deliverable forwards, swaps and options so that corporates are able to hedge any type of FX risk in more than 90 currencies at lower rates than what banks or brokers offer.

FX trade execution can be made via its proprietary trading platform or other other fintech or banking partners via API. The service offers a personalised FX risk mapping and a bespoke FX hedging program.

Laurent Descout
Laurent Descout

Laurent Descout, CEO and co-founder, commented: “Launching the Neo FX Hub is a major achievement for the group. Foreign exchange management is too often described as complicated, expensive and not transparent. With our FX Hub, we have built from scratch a trading floor and coupled it with a treasury management platform. This is all available without having to install anything. We have taken the first step towards re-engineering a full corporate banking platform.”

Neo FX Hub offers transparent access to FX markets, coupled with prime pricing and automated execution. Featuring reduced hedging costs, the service provides API access in order to connect easily with client’s TMS/ERP system, and offers full post execution management.

The FX Hub is able to migrate any type of corporate FX risk and automates any FX hedging process in less than 24 hours at the treasury team level with no IT involvement.

From high growth start-ups to multinationals, Neo advises clients in reducing transaction costs and boosting efficiency so that corporates define, implement, and monitor sound hedging policies. Neo is one of the first B2B Fintech to have reached this level of regulatory approval, which allows the digitalization of a large scope of hedging solutions for corporates.

Neo Group was founded in 2017 in Barcelona and obtained a regulatory license in 2018 to convert into a MiFID II regulated firm to deal with FX derivatives. The firm has 100% digital access to hedging instruments normally sold by banks (such as FX forwards, swaps and options).

Operating in the UK under the European passport, Neo may seek FCA regulation depending on the final outcome of Brexit. In 2018, Neo has closed its first funding round with UK investors and has development labs in London and Cambridge.