In this interview, Jordan Tilley, Clear Treasury’s CEO explains their approach to FX—and how it goes beyond transactions to help clients manage currency risk and exposure in an unpredictable FX market. He shares how they work closely with businesses across diverse sectors to develop strategies that align with each client’s unique goals and gives some examples of how their services can save businesses money.
What do you think sets Clear Treasury apart from the competition?
Our goal is to add tangible value through fully understanding our clients’ business, not just in FX terms but their business model as a whole. Combining technology with expertise allows Clear to offer a complete solution whether businesses are looking to scale, build on existing foundations or enter new geographies.
Who are your main types of clients?
Our clients vary from agriculture to tech, to brand management to payroll companies. Businesses with an annual fx turnover over £500k to £30m is our primary target audience.
What sort of services do you offer them?
It all depends on the clients’ goals, everyone likes the idea of making an FX gain however, the real outcome is not to let adverse market movement dent clients’ profit margins. We always take an approach to understand the clients/business risk appetite. From there, we would put forward 3 or 4 viable options to the client and work alongside various scenarios to ascertain which would be most commercially viable and suit their profile.
Example one:
- Client set up operations in the US, repatriating funds on a monthly basis across the year. 3m USD exposure. First time operating overseas offices and repatriating, Clear was a part of the internal conversations around operating processes/budgeting when initially mapping out US operations.
- Executed 3 tranches of forwards – September 23, November 23 and March 24. Hedging 75% of exposure. Set an annual cost price of 1.3000.
- Average rate across the 12 months 1.2700.
- FX monetary gain of £40,884.31.
- Trading with Clear since 2018.
Example two:
- Holidays bookings up to 12 months in advance on departures – 20m USD exposure annually.
- Executes 1 forward each month covering 70% of the value of that month’s booking.
- Engages with client each month to adjust their cost price to give the appropriate buffer. Trading with Clear since 2016 and supported business from 17m turnover to now over 100m.
What’s been your worst experience with foreign exchange?
Unforeseen events such as the pandemic, it produced the most difficult conversations we’ve had to date. Businesses we’ve worked with for numerous years, some of which you’ve seen grow from 5 staff to 50 staff, were looking at potential collapse and at the time, there was no end in sight. Despite producing the most difficult conversation, it also emphasized the importance of relationships, as many of our clients with hedging strategies were margin called and at a time where cash was king, it was the case of finding a place that offered both parties comfort. Businesses are built on people and conversations that events in 2020 produced would have been far more difficult and potentially expensive, if our relationships were solely transactional.
What do you enjoy most about FX for business?
Every day is different, economics and politics mean that every day brings new challenges and new solutions to find.
Its working with such a range of different companies and from so many industry sectors – the stories behind the requirement to buy or sell currency are so varied whether it be established firms or startups – working with business owners and finance Directors. We’ve built up so many long lasting relationships over the years and no two clients are the same.
Do you have any top tips for companies to manage their FX better?
Be prepared and be dynamic. Unfortunately, we’ve become accustomed to seismic events far too often in recent years, Brexit, pandemic, conflict in Russia and now the conflict in the Middle East. Uncertainty always sparks volatility in the market. It is imperative businesses weigh up the best and worst case scenarios and have the foresight to alleviate the currency risk should we experience sudden shifts in global markets.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
