FAQ's

Is MillTech regulated? 

Yes. MillTech is regulated and authorised by the Financial Conduct Authority, and registered with the National Futures Association as a Commodity Trading Advisor (”CTA”) and Introducing Broker (“IB“), ensuring our solutions meet strict compliance, reporting, and best-execution requirements. 

 

Is the MillTech platform secure and ISO 27001 certified?

Yes. The MillTech platform is ISO 27001 certified which means it is built with institutional-grade security standards. It uses encrypted data handling, secure connectivity for trade execution and settlement, and robust counterparty risk controls.  

 

How does MillTech support regulatory compliance in FX trading? 

MillTech conducts regular independent Transaction Cost Analysis (TCA) via BestX, providing third-party verification of FX costs. This helps clients demonstrate best execution, maintain audit trails, and meet regulatory compliance requirements. 

How does MillTech help manage foreign exchange (FX) risk?

MillTech helps investment managers, institutions and corporate teams manage FX risk by bringing competitive Tier-1 multi-bank rates onto a single platform, combined with express ISDA onboarding, independent TCA to demonstrate best execution, and fully automated end-to-end workflows that save time. The platform also provides hedging simulations and calculation tools to help design hedging strategies that protect margins and limit currency exposure.

 

What parts of the FX lifecycle does MillTech automate? 

MillTech facilities end-to-end automation of the entire FX lifecycle — from multi-bank ISDA onboarding, trade execution (via platform, API/FIX, or outsourced), settlement (SWIFT/CLS) through to reporting and post-trade analysis.

 

How does MillTech ensure transparency in FX execution and pricing? 

MillTech operates on a fixed-fee model and provides regular independent Transaction Cost Analysis (TCA), giving clients full visibility over costs and benchmarked execution quality to ensure best-execution and full transparency.

 

How does MillTech compare to a traditional single-bank FX provider? 

Unlike traditional single-bank relationships, MillTech unifies the entire FX journey by combining express ISDA onboarding, access to multi-bank FX rates on a single platform, independent TCA reporting, and fully automated end-to-end workflows.

 

How can MillTech’s FX Management solution reduce FX execution costs? 

By leveraging economies of scale—managing over $500 billion in FX annually—MillTech is able to provide preferential rates from a multitude of Tier‑1 liquidity providers, typically reserved for large institutions. This multi-bank access, combined with transparent pricing, can deliver average cost savings of up to 88%* for investment managers and institutions.

 

Does MillTech offer margin-free hedging for FX forwards? 

Yes, MillTech offers a margin-free** hedging solution, enabling the execution of FX forwards without posting initial or variation margin. This removes the capital drag associated with collateral and frees up liquidity for other operational or investment needs.

 

How does MillTech support regulatory compliance in FX trading? 

MillTech conducts regular independent Transaction Cost Analysis (TCA) via BestX, providing third-party verification of FX costs. This helps clients demonstrate best execution, maintain audit trails, and meet regulatory compliance requirements. 

 

Does the solution support multi-currency risk management? 

Yes. MillTech’s platform supports a wide range of currencies, including major pairs such as USD, EUR, and GBP, along with many others. This enables corporates, investment managers, and institutions to manage FX risk effectively across multiple regions and exposures. 

What are Money Market Funds (MMFs)?

Money Market Funds are high-quality, low-risk investment vehicles that invest in short-term debt instruments. Their stable and highly liquid nature helps investors preserve capital while earning interest. Within MillTech’s Cash Management solution, AAA-rated MMFs provide competitive yields on surplus cash through access to multiple Tier-1 providers — all from one platform.

 

What are AAA-rated funds?

AAA-rated funds represent the highest credit quality, offering a very high level of security and minimal credit risk.

 

Why use Money Market Funds, and who typically invests in them?

Money Market Funds are used by corporates, asset managers, pension funds, insurance companies, and financial institutions that need to manage large cash balances safely while earning a return.

They offer a more secure, liquid, and yield-generating alternative to holding cash on deposit with a single bank. MMFs are diversified across multiple high-quality issuers - typically banks, governments, and short-term securities - reducing concentration risk.

Investors choose MMFs to:

• Preserve capital while maintaining same-day liquidity
• Diversify counterparty exposure beyond a single bank
• Capture higher yields than standard deposit accounts
• Benefit from transparency and regulatory oversight (AAA-rated funds are independently monitored and regulated)

For many institutions, MMFs are a core component of their short-term liquidity strategy, combining the safety of cash with the performance and governance of a managed fund.

 

What are the key benefits of MillTech’s Cash Management solution?

MillTech’s Cash Management solution offers something different to the often rigid world of cash management portals:

• Express onboarding to AAA-rated MMFs
• Automated investment and redemption workflows
• Clear yield comparisons across Tier-1 providers
• Full regulatory compliance and audit support
• Zero-fee access for clients

 

Can MillTech auto-sweep my cash?

Yes. MillTech can connect directly to Custodians, Administrators, OMS, TMS, and PMS systems, applying client-defined rules and investment parameters. It can either auto-execute or stage orders for approval, and provides full reconciliation and reporting on every transaction.

 

How much does this service cost?

There is no fee for clients. MillTech’s model is designed for scalability and efficiency — we receive a small fee directly from the Money Market Fund providers (Tier-1 banks and the world’s largest MMF managers). This has no impact on client returns.

 

I currently use an automated sweep with my custodian — what are the benefits of using MillTech?

Traditional custodian sweeps are often expensive and restricted to a single MMF. MillTech offers all the automation benefits of a sweep but with access to a broader MMF universe and the potential for better yields.

What is MillTech’s Co-Pilot?

Co-Pilot is MillTech’s AI-powered tool for treasury teams, built to optimise FX risk management through hedging simulations, cost of carry analysis, cash optimisation, and robust governance controls. 

 

How does Co-Pilot improve FX risk management for treasury teams? 

Co-Pilot strengthens FX risk management by simulating hedging strategies, tracking cost-of-carry, and modelling liquidity scenarios. It also optimises cash, enables auto-hedging, and delivers institutional-grade oversight— giving treasury teams the insight and tools to make faster, more informed FX decisions.

 

Can Co-Pilot automate hedging activities? 

Yes. Co-Pilot connects directly to source data to enable auto-hedging workflows, applying rule-based calculations, intelligent tenor selection, and performance benchmarking to streamline asset, share-class, and balance-sheet hedging.

 

What is the Hedging Simulator in MillTech’s Co-Pilot platform? 

The Hedging Simulator is a next-generation risk advisory tool that allows treasury teams to model and compare alternative hedging strategies under various market scenarios. It quantifies potential outcomes, assesses risk, and helps select the most effective FX strategy using data-driven

Can MillTech help reduce FX costs? 

Yes. By providing access to competing rates from multiple liquidity providers on a single platform and facilitating demonstrable best execution through independent Transaction Cost Analysis (TCA), MillTech ensures transparent, competitive pricing.

 

How transparent is MillTech’s pricing?

Transparency is at the core of MillTech’s model. We operate on a fixed-fee service model for FX and a zero-fee model for money market funds. Independent TCA ensures full disclosure of execution costs, supported by detailed transaction reports and benchmarking against independent market data — giving clients complete visibility into pricing and performance.

 

What is pre-trade analysis in FX risk management?

Pre-trade analysis evaluates FX execution strategies before a trade is executed to find the most cost-effective option. Using historical data, live market conditions, and trading algorithms, it estimates costs, assesses market impact, liquidity, and timing to helps treasury teams optimise execution to reduce FX costs.

 

What is post-trade analysis in FX risk management? 

Post-trade analysis measures the quality of execution by comparing executed trades against independent benchmarks. It highlights slippage, evaluates market impact, and considers volatility, liquidity, and timing. These insights enable teams to refine future strategies, reduce costs, and achieve more consistent execution outcomes.

 

How does MillTech’s Transaction Cost Analysis improve FX strategy? 

MillTech’s independent TCA provides actionable insights into execution quality. By benchmarking trades against independently calculated mid-market rates, it identifies hidden transaction costs, highlights slippage drivers, and uncovers optimisation opportunities. This allows clients to improve timing, order sizing, and execution method — ultimately strengthening FX strategy and outcomes.

 

How does TCA support compliance and governance in FX trading? 

TCA serves as an independent audit of FX execution. It verifies execution quality and costs, providing transparency that helps treasury teams demonstrate best execution to regulators and stakeholders. This strengthens governance, accountability, and oversight while reducing operational risk and supporting regulatory compliance.

 

What information is needed to conduct Transaction Cost Analysis (TCA) with MillTech?

To run TCA, MillTech requires only a few core trade details: the execution time and rate, trade date, settlement date, currency pair, and trade direction (buy or sell). Counterparty information can be included but is optional. Clients can provide this data by completing MillTech’s TCA template form, by sending raw trade data exported from their internal systems, or simply by sharing PDF trade confirmations. MillTech then passes this information to its independent third-party TCA provider, who produces the TCA.

 

What information will I receive from a MillTech TCA report? 

A MillTech TCA report provides a clear and independent assessment of execution quality. Each trade is benchmarked against market mid-rates to highlight slippage, spread costs, and the impact of market conditions such as timing and liquidity. The report goes beyond trade-by-trade evaluation by analysing performance across counterparties, currencies, tenors, and product types, showing where costs are concentrated and where execution is most competitive. It also attributes both explicit and implicit costs, summarises overall portfolio outcomes, and highlights trends that operations teams can use to refine strategy and improve results.

 

How much does Transaction Cost Analysis cost with MillTech? 

TCA is included at no extra cost. MillTech provides independent TCA via BestX as part of its transparent fixed-fee model, ensuring clients receive full cost visibility and performance reporting without additional expense.