FOREX FOR FILM (FX4FILM)
FX4FILM is Quantock’s currency-market-based budget management and risk mitigation service designed for the film and entertainment industry.
OVERVIEW Among the many players in the entertainment domain, film and television production companies, in particular, engage in projects across the budgetary spectrum that span multiple territories and involve multiple currencies. Given that these productions are typically organized as single purpose vehicles (SPVs) with no previous histories, they are unlikely to enjoy access to the enhanced exchange rates that are available to an established entity. As such, production companies usually have to rely on standard retail banking arrangements for their foreign currency budgetary requirements. Moreover, companies in the entertainment sector are less likely to have the time and resources required to professionally manage their foreign currency exposure. Thus, lacking the expert market knowledge, industry insights and management tools required to enhance and protect budgets via currency market participation, production companies may unwittingly accept arbitrary foreign exchange pricing for future market trends – thereby increasing their overall financial risk. SOLUTIONS This is where FX4FILM enters the picture. Quantock’s foreign-exchange-related strategic partners participate in the global currency market on behalf of corporate and institutional clients within and beyond the media and entertainment industry. Our finance professionals obtain ultra-competitive currency exchange rates and hedge same to secure clients’ budgets – or, at clients’ requests, will undertake managed speculative activities to generate revenue for clients. As the global currency market is open 24 hours a day, 5.5 days a week, pricing volatility can strike and decimate production budgets at any time. Contrary to popular belief, these currency fluctuations are not random instances of “force majeure”. Rather, they are understandable exchange rate movements caused by identifiable socio-economic and geo-political events. In this regard, Quantock’s associated external forex managers utilize hedging protocols in their zealous approach to risk mitigation. The savings achieved by clients in this manner may then be used to augment bottom line profit or can be channeled back into budgets for extended operational capacity. Moreover, unlike some other currency managers, participation in the FX4FILM service does not generate any fee or commission liabilities because revenues are derived from the “spread” – i.e. the difference between the buy price and sell price of currencies. FX4FILM provides competitive rates of exchange, market expertise, and optimum timing of execution. Quite simply, companies can minimize risk and maximize the value of entertainment budgets by employing risk-averse hedging strategies through professionals that understand how precious those budgets are. FX4FILM is particularly beneficial to: Producers/Executive Producers Film Finance Companies Completion Bond Companies Sales Agencies Distributors Production Accountants National & Provincial Film Bodies Film music producers Actors Click HERE for additional information about FX4FILM