Monex Europe Markets S.V., S.A.U.

Tailored FX derivative solutions designed around your risk profile, backed by expert analysis and innovative hedging strategies.

Who we are

For professional clients only as defined under Law 6/2023, of 17 March, on the Securities Markets and Investment Services (Ley 6/2023, de 17 de marzo, de los Mercados de Valores y de los Servicios de Inversión) ("Spanish Securities Markets Law") and Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU ("MiFID II"). Monex Europe Markets S.V., S.A.U. ("MEMSV") is a Spanish company authorised and regulated by the Comisión Nacional del Mercado de Valores ("CNMV") with registry number 321 as an Authorised Investment Firm with permissions to execute FX Derivatives, over the counter ("OTC"), on an execution only basis with professional clients/eligible counterparties. MEMSV offers, among other products and services, foreign exchange derivatives trading on an execution-only basis.

With a range of FX derivative products for FX exposure management and hedging strategies, we provide bespoke solutions tailored to your risk appetite, hedging priorities, and internal treasury policies. Our award-winning analysis team and FX structurers work with you to develop innovative risk management strategies.

To find out more about our regulatory status, safeguarding and settlement information, please click below.

Regulation

Our Solutions

All FX derivative contracts provided by MEMSV involve products that constitute "financial instruments" within the scope of MiFID II and fall under the Spanish Securities Market Law. These instruments allow us to provide tailored solutions to manage and hedge FX risk effectively for our professional clients, and include the following:

FX Spot

FX Forward* (including the ability to make rolling hedges for balance sheet/NAV hedging)

FX Option*

NDFs (Non-Deliverable Forwards)

FX Swaps*

FX hedging solutions

FX risk can be transactional, translational, or economic in nature, and each company may benefit from a tailored FX risk management and hedging policy. At Monex, we provide information and tools to assist you in creating and monitoring this policy as markets and businesses evolve over time. Flexibility is key, and our dedicated team can assist by providing data on your FX exposure and offering a range of hedging instruments to diversify your approach. Once implemented, we can provide regular updates on the performance of your hedging programme to help ensure it remains aligned with your key objectives and is performing as intended.

Whether you want to protect certain rates, participate in favourable moves, or out-perform the market, we offer resources and support to companies throughout every step of the journey. Please get in touch with your Monex contact to access our derivatives structuring team and discuss how we can assist you.

Risk management strategies

Our team of dedicated traders can provide you with information on the different products available, enabling you to manage the currency exposures on your balance sheet and hedge your currency risk against future movements in exchange rates.

We facilitate a range of products including deliverable and non-deliverable FX forwards, swaps, and options. Your dedicated trader can provide information on various FX strategies and products, enabling you to make informed decisions.

Non-deliverable forwards (NDFs)

A non-deliverable forward (NDF) is a type of contract that allows companies to offset the financial impact of currency movements. An NDF is most commonly used in markets where local currency controls restrict the availability of standard forward contracts, or where physical exchanges of currency are not required.

An NDF is a cash-settled forward contract. Instead of exchanging notional currency amounts on the value date, the trade is closed out, which generates either a positive or a negative cash flow. The exchange of cash flow is usually directly opposite to the clients underlying exposure. If the rate of exchange when the contract is closed out is worse than the rate of the NDF contract, the client will receive a positive cash flow to offset this. If the rate of exchange is better than the rate of exchange of the NDF contract, the negative cash flow will offset this. The benefits of an NDF are that they allow you to hedge a currency exposure to a restricted currency that you would not be able to hedge using traditional methods.

Forwards

A forward contract is a customised OTC contract between two parties to buy or sell an asset at a specified price on a future date. A forward contract can be used for hedging or speculation, although its non-standardised nature makes it particularly apt for hedging. This includes balance sheet hedges and loan hedging.

This type of forward contract, where the purpose is not to facilitate a payment for identifiable goods and services or direct investment can only be offered by an investment firm.

Options contracts

Options contracts provide flexibility in managing currency risk by giving the holder the right, but not the obligation, to buy or sell a currency at a predetermined rate on or before a specified date. Options can be tailored to suit specific hedging needs, allowing companies to protect themselves against adverse currency movements while benefitting from favourable ones.

Our team can help structure options contracts that align with your risk management strategies and financial objectives.

Become a client

Find out more about our full range of services by talking to one of our experienced FX specialists on

+34 919 032 784