Bloomberg, Shell Design Treasury Tool To Centralize FX Management

Technology developed by Bloomberg is now being used by Shell‘s Foreign Exchange Central Treasury unit to interconnect the fuel conglomerate’s operating units across 22 markets, the companies revealed Monday (Nov. 5).

Shell collaborated with Bloomberg on the solution, integrated into the Bloomberg Terminal, which is also available for use by other corporate treasury operations, the companies noted. The tool interconnects Shell’s central treasury office to its 718 operating units to manage foreign exchange (FX) risk and volatility with its more than 200 bank partners. The companies noted the treasury service automates execution and risk mitigation, addresses corporate governance and is integrated into Bloomberg’s FXGO, its foreign exchange multi-bank trading platform.

“Shell worked with Bloomberg to develop a comprehensive process that helps reduce our operating risk and transaction costs,” said Shell Head of Liquidity and Foreign Exchange Michael Dawson in a statement. “Now, we can more efficiently route market requests from regional centers around the world to our central treasury. The Bloomberg Terminal connects Shell with all our counter parties, providing straight-through processing (STP) into Shell’s treasury management system.”

In another statement, Bloomberg Global Head of FX Electronic Trading Tod Van Name noted that Shell is already using Bloomberg’s FXGO, and its adoption of the new service in the Bloomberg Terminal will enhance Shell’s FX management operations.

“Together, we have built a solution that creates a fast and easy end-to-end electronic FX workflow with a reliable order audit trail,” Van Name said. “Shell has helped us create the tool that multinational corporate treasury executives have needed for a long time.”

Shell’s other FinTech endeavors include an investment in blockchain startup Applied Blockchain earlier this year via its trading unit Shell Trading International. Shell acquired a minority stake in the U.K.-based startup that develops blockchain applications, focusing particularly on smart contracts for corporates across a range of industries.