What is a Scheduled Exchange?
By using peer-to-peer technology and aggregating our customers’ requirements into one exchange we can optimise the opportunity to match currency and deliver the best possible rate for all involved. Here’s how we do it:
1. Customers deposit funds into their segregated freemarket escrow account. The nature of the Scheduled Exchange requires us to operate a pre-funded model, as this is how we are able to match our customers’ currencies – achieving mid-market rates. This means that customers must deposit required funds in their entirety prior to the Scheduled Exchange taking place.
2. Customers book their Exchange Instruction via their online platform. You tell us whether you want to Buy or Sell, what currencies you would like to use for the transaction, and where you want us to send the funds once the exchange is completed. We will then enter you into the next Scheduled Exchange.
3. The Scheduled Exchange takes place. Depending upon the currency pairing and demand we operate exchanges at periodic intervals throughout the day, with a minimum of one Scheduled Exchange at midday.
We aim to achieve mid-market rates as often as possible, for as many participants as possible. If your funds are wholly matched with another participant’s, you both achieve the mid-market rate.
If an exchange is incompletely matched, you benefit from our market buying power. We pass through the institutional rate from our global banking partner (RBS) and share the split between matched currency and wholesale-acquired currency evenly across all exchange participants.
4. We pay out to your nominated beneficiary. Simple as that – we pay your exchanged funds to your beneficiary bank account.
So, there you have it – our Scheduled Exchange broken down. Straightforward, isn’t it? If you haven’t already, you can sign up here.