Sberbank executes 80% of customers’ FX orders inside the bank

Feb 16, 2021

The consolidation of customer order flow in the FX market within Sberbank keeps gaining momentum. Over the year, the bank achieved an 80% internalization rate for FX transaction risks: in most cases, an order to sell or buy foreign currency was executed within the bank’s internal perimeter without entering the external market. As a result of this optimization, the bank has cut costs, while its customers have been given the best deals.

This high trade flow internalization rate is a sign of Sberbank’s advanced processes technology-wise. Thanks to special trading algorithms, the bank has created the largest pool of ruble liquidity, which allows stakeholders to manage risk effectively and offer the best customer service.

The establishment and development of a global ruble trading platform are among the top priorities currently facing Sberbank’s Global Markets Department. The Algorithmization of customer order execution has enabled us to increase the annual turnover in currency conversion to USD600 bn in 2020, up from USD500 bn in 2019. In 2020, the share of transactions where risks are covered by counter transactions without entering the external market amounted to 80%, which is 10% more y-o-y. First and foremost, this was achieved due to new unique trading algorithms that helped us improve the quality of customer services and increase internal liquidity

Alexander Zozulya 

Senior Managing Director, Global Markets, Sberbank