FX Week

Corporate FX Costs Hit By Consolidation

NEWS

LONDON--Consolidation in the banking world is adding to the rising hedging costs of corporate players trading sterling/euro, according to a senior figure at Mars, the international food business. But traders deny this is down to any collusion on pricing --it’s just an increasingly illiquid market, they say.

John Dehnel, European currency centre director for treasury operations at Mars, says the removal of another sterling/euro player from the market with the merger of Royal Bank of Scotland a