These include, but not limited to:
Spot Foreign Exchange
We have a competent customer relationship management process, high level service in terms of feedback that enables us tackle relatively large amounts at very competitive pricing.
Forward Foreign Exchange
You exchange one currency for another at a rate agreed today with delivery at some time in the future. You benefit from fixed future exchange rates, which provides protection against subsequent adverse exchange rate movements in the spot foreign exchange market. This gives you known future cash flows and accurate budgeting.
Standard Chartered Bank offers competitive and innovative structured solutions to our clients that enables us enhance interest returns and also minimise foreign exchange costs. We work hand in hand with colleagues in Trade Finance, credit etc to structure solutions for clients in all areas.
Foreign Currency Deposits
We accept deposits in major foreign currencies and pay attractive rates of interest.
Principal Protected Deposit
Let your deposits enjoy the possibility of a higher than normal return whilst providing you with capital protection.
High Yield Deposit
A high yield deposit is a new and exciting investment opportunity for depositors to earn a higher rate of interest than a traditional time deposit.
High Yield Deposits can pay a higher rate of interest than normal time deposits because you grant the Bank the right (but not the obligation) to repay your deposit at maturity in a specified alternative currency and at a conversion rate predetermined at the time the deposit is made.
High Yield Deposits are suitable if you wish to obtain a higher interest rate than that of traditional deposits. The extra interest differential acts as a partial buffer against depreciation of your deposit currency.
* Alternatively, if your deposit currency appreciates and you get repaid in the alternative currency, you also benefit from the upward movement in the exchange rate, up to the Fixed Conversion Rate.
The deposit is particularly suitable if you have intentions to convert your base currency into another currency at an exchange rate (conversion rate) chosen by you at the maturity of your deposit.
FX Option with a Fixed Strike
FX Options & Digitals with a Fixed Strike are derivative instruments of generic spot and forward foreign exchange. They give customers added flexibility when managing foreign exchange risk, whether for hedging, trading or yield-enhancement purposes.
SCB Global Foreign Exchange Options (GFXO) prices contracts in response to customer requests and then manages the residual risks from those deals. The business is customer driven and relies on Financial Markets Sales to sell the products (originate the deals). Trading is conducted to maximize profit from the residual risk.
European Vanilla Options
The owner of an FX Option with Fixed Strike pays an upfront premium for the right, without obligation, to exchange a specified amount of one currency for a specified amount of another currency. Since the owner of an option will not exercise their right to exchange if it results in a loss, the option risk profile has no loss potential and unlimited profit potential. The expected present value of this profit is the option premium (disregarding bid/offer spreads). The owner (or buyer) of the option pays this premium to the writer (or seller) at trade inception.
Vanilla FX Options
A European Vanilla Option is the simplest form of currency option. It provides the holder with the right to buy (call) or sell (put) a defined currency at a set price on a set date. The option can only be exercised on the specified exercise date in the option contract. For a bank selling options to customers the profit or loss is the difference between a number of factors which drive the value of the option when compared with the value of the underlying currency spot or forward rate.
For a seller of a European Option there is unlimited downside risk if the spot rate at the date of exercise is above the strike price of the option (for a call option) or below the strike price (for a put option). In theory the maximum payout of a put option that is in-the-money is the total nominal value of the contract because spot cannot get below zero. In reality it will be something less.
An American Option has the same features as a European Option but one significant difference. The option can be exercised at any time until maturity if the strike is triggered. It is then up to the holder of the option (call or put) to decide if they wish to exercise the option. Once exercised the option payout is exactly the same as a European Option.
In theory this poses slightly different risk management issues for the seller of the option because they must be in a position to deliver the full notional value payout at any time during the life of the American option. In reality the way banks manage the risk of having to payout on either a European or American style option is exactly the same and is known as "Delta hedging".