Embedding automation in FX strategy 2025

How automation can help CFOs and treasurers streamline FX risk management and stay ahead in 2025’s volatile markets.

The FX landscape in 2025

2025 has already been a whirlwind for global currencies. The dollar experienced its worst first half since 1973. Sterling recorded its strongest quarter in nearly three years, and the euro soared to a four-year high. With tariffs dominating headlines and policies shifting from one day to the next, stability has been hard to find.

Treasurers faced a jolt in April when the VIX index—a key measure of investor demand for protection against market volatility—spiked to 60, a crisis-level reading seen only three times since its inception. Meanwhile, corporate attention has been fixed on central bank policies, as diverging interest rate trajectories between the Federal Reserve, European Central Bank, and Bank of England further complicate the landscape.

For CFOs and treasurers, the message is clear: FX risk can no longer be left to chance. FX automation — the use of technology to execute, monitor, and adjust FX strategies without manual intervention — is emerging as an essential tool for navigating markets with speed, precision, and confidence.

 

The case for automation in modern FX strategy

Our 2025 Global FX Report shows just how dependent many market participants remain on manual methods. A third of corporates (34%) still pick up the phone to instruct their FX trades, while another 32% rely on email. Fund managers aren’t much further ahead: 29% are on the phone, and 31% stick with email.

With so much inefficiency still in play, it’s little wonder that automation is increasingly becoming a top priority for fund managers and corporates worldwide.

Why finance teams are prioritising

Automation in FX isn’t just about speed — it’s about accuracy, transparency and scale. Here are some of the key drivers behind the shift:

• Price discovery: Manually comparing FX rates isn’t just slow, it can also limit the pool of liquidity providers. The fewer options finance teams have, the more likely they are to end up paying a premium.
• Risk identification: With the sheer volume of data involved, spotting hidden risks without technology is like looking for a needle in a haystack. Inevitably, that leads to oversights, and oversights in FX can be costly.
• Trade execution and settlement: Every extra step done by hand adds friction. Delays creep in, errors become more likely, and costs quietly mount.
• Onboarding liquidity providers: Bringing new counterparties onboard isn’t just a handshake—it often means mountains of paperwork and ISDA agreements that can drag on for months.

 

Practical applications of FX automation

Automated hedging

Hedging no longer requires continuous manual oversight. With automation, execution and settlement becomes rules-based and aligned with policy, reducing the risk of human error and ensuring consistent outcomes.

Key capabilities include:

• Automated systems integration: Data flows automatically between treasury and accounting platforms, eliminating duplication, reducing delays, and ensuring real-time consistency across systems.
• Automated reporting: Generating and distributing packs for regulators, auditors, and boards with minimal effort.

Cash optimisation

Excess liquidity often sits idle or is misallocated. Automation ensures cash is continuously deployed in line with treasury policy, maximising returns while maintaining necessary buffers.

With automation, CFOs and treasurers can:

• Identify surplus cash automatically through configurable rules.
• Deploy funds efficiently, directing them to earn the best return while maintaining liquidity buffers.

 

Embedding automation into your existing FX workflow

Embedding automation isn’t about adding another layer of technology — it’s about transforming how FX strategy is designed and executed.

For CFOs and treasurers, automation creates the foundation for risk management that is proactive, transparent, and scalable, rather than reactive and manual. At MillTech, we work with finance leaders to embed automation in a way that aligns directly with governance, risk appetite, and strategic objectives.

• Automated execution: Trades are executed automatically via API or FIX connections.
• Straight-through settlement: Settlement instructions are automated via SWIFT or CLS, sent directly to your custodian or bank account for faster, safer completion.
• Automated reporting: Reporting packs are generated and distributed automatically to Administrators, Custodians, PMS/TMS systems, and regulators, ensuring consistency and compliance without extra manual work.
• Cash optimisation: Excess cash is identified automatically using configurable client rules and deployed on a best-return basis.
• Strengthening governance: Reports and yield data are published daily, ensuring compliance with best execution standards.

Together, these capabilities show how MillTech embeds automation at the core of FX strategy — delivering the accuracy, control, and scalability CFOs and treasurers need to navigate 2025’s volatile markets with confidence.

If you’d like to explore how automation could strengthen your FX strategy, you can get in touch with our team here.

 

Please refer to our Research Disclosure Page for more information on the data referred to in the above.