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Stats & Facts
This section contains a reference point for the source of any claims, statistics or quotes used throughout the website. If you feel that anything stated is misquoted or incorrect then please contact compliance@bound.co
Claim: £70k average UK SME currency loss
Source: Bibby Financial Services’ recent Trading Places Report highlights that 67% of UK SME exporters have experienced negative Foreign Exchange fluctuations averaging £70,000 over the previous 12 months (Bibby Financial Services, 2017).
https://www.bibbyfinancialservices.com/about-us/news-and-insights/reports/2017/trading-places
Claim: 94% of FTSE 500 companies hedge
Source: At its 24th Annual General Meeting in Beijing, the International Swaps and Derivatives Association, Inc. (ISDA) announced the results of a survey of derivatives usage by the world’s 500 largest companies. According to the survey, 94% of these companies use derivative instruments to manage and hedge their business and financial risks.
https://www.isda.org/2009/04/22/derivative-usage-survey/
Claim: 4% of SME’s currently hedge
Source: “4% of exporting SMEs currently using products to mitigate against foreign currency risks” UK SME exporting trends: finance and trade | February 2020
Risk reduction Calculation
Value at risk (VaR) in FX, is a statistic that quantifies the extent of possible financial losses from foreign exchange rates movements.
To calculate value-at-risk (VAR), we use the ‘Variance-Covariance approach’*:
(*assumes returns are normally distributed)
VAR
Method
Step 1: Data cleaning - we take an averaging DR for a particular month and remove all the swaps, leaving only the trades that buy and sell the right ccy.
Step 2: Calculate spot VAR for that DR with spot trades over the month at 95% confidence.
Step 3: Calculate achieved VAR for the DR with averaging at 95% confidence.
Step 4: Compare spot VAR against achieved VAR averaging to get percentage risk reduction.
Step 5: Calculate the average risk reduction from all averaging DRs in that month.
Sources
https://www.investopedia.com/articles/04/092904.asp and https://www.investopedia.com/articles/04/101304.asp
Time saved Calculation
Average time spent making a trade/amendment with Bound app: 2 mins
(Video evidence of performing these actions)
Average time spent making a trade with banks/brokers: 1 phone call and 1 email* = 15 mins
(*European corporates spend 2.25 days per week on FX-related activity on average - MilltechFX CFO report 2024)
Approximate time saved per trade: 13 mins
Number of trades booked* with Bound, and all amendments (cancellations, amount changes, date changes, date rolls) in a particular month
(*all trades are taken into account, including averaging trades)
Total time saved = 13 * (Number of trades + amendments)
Total time saved / MAUs => time saved on average (per month)
(MAU is the monthly active users for that month)
Amount saved Calculation
Pricing before bound* (spread%) for customers, using all available info from calls and notes
Pricing with bound (spread%) for customers
Pricing difference = pricing with/pricing before
Amount saved => average pricing difference
(*Due to the opaqueness of the FX industry, many customers are unable to provide information on pricing before Bound. Therefore, all available data is used in the calculation to form the most accurate representation.)
Quotes
Salesforce Quote
https://www.cnbc.com/2022/05/31/benioff-foreign-exchange-pushed-salesforce-to-lower-revenue-guidance.html
Meta Quote
https://techcrunch.com/2022/07/27/meta-posts-its-first-ever-quarterly-revenue-decline/
Microsoft Quote
https://www.moneycontroller.co.uk/finance-news/microsoft-corporation/press-release-fy22-q4-783997
Note: All testimonials, reviews, opinions or case studies presented on our website may not be indicative of all customers. Results may vary and customers agree to proceed at their own risk
This section contains a reference point for the source of any claims, statistics or quotes used throughout the website. If you feel that anything stated is misquoted or incorrect then please contact compliance@bound.co
Claim: £70k average UK SME currency loss
Source: Bibby Financial Services’ recent Trading Places Report highlights that 67% of UK SME exporters have experienced negative Foreign Exchange fluctuations averaging £70,000 over the previous 12 months (Bibby Financial Services, 2017).
https://www.bibbyfinancialservices.com/about-us/news-and-insights/reports/2017/trading-places
Claim: 94% of FTSE 500 companies hedge
Source: At its 24th Annual General Meeting in Beijing, the International Swaps and Derivatives Association, Inc. (ISDA) announced the results of a survey of derivatives usage by the world’s 500 largest companies. According to the survey, 94% of these companies use derivative instruments to manage and hedge their business and financial risks.
https://www.isda.org/2009/04/22/derivative-usage-survey/
Claim: 4% of SME’s currently hedge
Source: “4% of exporting SMEs currently using products to mitigate against foreign currency risks” UK SME exporting trends: finance and trade | February 2020
Risk reduction Calculation
Value at risk (VaR) in FX, is a statistic that quantifies the extent of possible financial losses from foreign exchange rates movements.
To calculate value-at-risk (VAR), we use the ‘Variance-Covariance approach’*:
(*assumes returns are normally distributed)
VAR
Method
Step 1: Data cleaning - we take an averaging DR for a particular month and remove all the swaps, leaving only the trades that buy and sell the right ccy.
Step 2: Calculate spot VAR for that DR with spot trades over the month at 95% confidence.
Step 3: Calculate achieved VAR for the DR with averaging at 95% confidence.
Step 4: Compare spot VAR against achieved VAR averaging to get percentage risk reduction.
Step 5: Calculate the average risk reduction from all averaging DRs in that month.
Sources
https://www.investopedia.com/articles/04/092904.asp and https://www.investopedia.com/articles/04/101304.asp
Time saved Calculation
Average time spent making a trade/amendment with Bound app: 2 mins
(Video evidence of performing these actions)
Average time spent making a trade with banks/brokers: 1 phone call and 1 email* = 15 mins
(*European corporates spend 2.25 days per week on FX-related activity on average - MilltechFX CFO report 2024)
Approximate time saved per trade: 13 mins
Number of trades booked* with Bound, and all amendments (cancellations, amount changes, date changes, date rolls) in a particular month
(*all trades are taken into account, including averaging trades)
Total time saved = 13 * (Number of trades + amendments)
Total time saved / MAUs => time saved on average (per month)
(MAU is the monthly active users for that month)
Amount saved Calculation
Pricing before bound* (spread%) for customers, using all available info from calls and notes
Pricing with bound (spread%) for customers
Pricing difference = pricing with/pricing before
Amount saved => average pricing difference
(*Due to the opaqueness of the FX industry, many customers are unable to provide information on pricing before Bound. Therefore, all available data is used in the calculation to form the most accurate representation.)
Quotes
Salesforce Quote
https://www.cnbc.com/2022/05/31/benioff-foreign-exchange-pushed-salesforce-to-lower-revenue-guidance.html
Meta Quote
https://techcrunch.com/2022/07/27/meta-posts-its-first-ever-quarterly-revenue-decline/
Microsoft Quote
https://www.moneycontroller.co.uk/finance-news/microsoft-corporation/press-release-fy22-q4-783997
Note: All testimonials, reviews, opinions or case studies presented on our website may not be indicative of all customers. Results may vary and customers agree to proceed at their own risk
This section contains a reference point for the source of any claims, statistics or quotes used throughout the website. If you feel that anything stated is misquoted or incorrect then please contact compliance@bound.co
Claim: £70k average UK SME currency loss
Source: Bibby Financial Services’ recent Trading Places Report highlights that 67% of UK SME exporters have experienced negative Foreign Exchange fluctuations averaging £70,000 over the previous 12 months (Bibby Financial Services, 2017).
https://www.bibbyfinancialservices.com/about-us/news-and-insights/reports/2017/trading-places
Claim: 94% of FTSE 500 companies hedge
Source: At its 24th Annual General Meeting in Beijing, the International Swaps and Derivatives Association, Inc. (ISDA) announced the results of a survey of derivatives usage by the world’s 500 largest companies. According to the survey, 94% of these companies use derivative instruments to manage and hedge their business and financial risks.
https://www.isda.org/2009/04/22/derivative-usage-survey/
Claim: 4% of SME’s currently hedge
Source: “4% of exporting SMEs currently using products to mitigate against foreign currency risks” UK SME exporting trends: finance and trade | February 2020
Risk reduction Calculation
Value at risk (VaR) in FX, is a statistic that quantifies the extent of possible financial losses from foreign exchange rates movements.
To calculate value-at-risk (VAR), we use the ‘Variance-Covariance approach’*:
(*assumes returns are normally distributed)
VAR
Method
Step 1: Data cleaning - we take an averaging DR for a particular month and remove all the swaps, leaving only the trades that buy and sell the right ccy.
Step 2: Calculate spot VAR for that DR with spot trades over the month at 95% confidence.
Step 3: Calculate achieved VAR for the DR with averaging at 95% confidence.
Step 4: Compare spot VAR against achieved VAR averaging to get percentage risk reduction.
Step 5: Calculate the average risk reduction from all averaging DRs in that month.
Sources
https://www.investopedia.com/articles/04/092904.asp and https://www.investopedia.com/articles/04/101304.asp
Time saved Calculation
Average time spent making a trade/amendment with Bound app: 2 mins
(Video evidence of performing these actions)
Average time spent making a trade with banks/brokers: 1 phone call and 1 email* = 15 mins
(*European corporates spend 2.25 days per week on FX-related activity on average - MilltechFX CFO report 2024)
Approximate time saved per trade: 13 mins
Number of trades booked* with Bound, and all amendments (cancellations, amount changes, date changes, date rolls) in a particular month
(*all trades are taken into account, including averaging trades)
Total time saved = 13 * (Number of trades + amendments)
Total time saved / MAUs => time saved on average (per month)
(MAU is the monthly active users for that month)
Amount saved Calculation
Pricing before bound* (spread%) for customers, using all available info from calls and notes
Pricing with bound (spread%) for customers
Pricing difference = pricing with/pricing before
Amount saved => average pricing difference
(*Due to the opaqueness of the FX industry, many customers are unable to provide information on pricing before Bound. Therefore, all available data is used in the calculation to form the most accurate representation.)
Quotes
Salesforce Quote
https://www.cnbc.com/2022/05/31/benioff-foreign-exchange-pushed-salesforce-to-lower-revenue-guidance.html
Meta Quote
https://techcrunch.com/2022/07/27/meta-posts-its-first-ever-quarterly-revenue-decline/
Microsoft Quote
https://www.moneycontroller.co.uk/finance-news/microsoft-corporation/press-release-fy22-q4-783997
Note: All testimonials, reviews, opinions or case studies presented on our website may not be indicative of all customers. Results may vary and customers agree to proceed at their own risk
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