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Corporate Giants Are the New Hedge Funds of the Global FX Market

As currency trading has become more competitive and commoditized, big Wall Street banks have begun focusing on serving the world’s largest companies.

By Alice Atkins & Jenny Surane | October 12, 2023 at 02:31 PM
Photo: The Apple Fifth Avenue store in New York City on September 22, 2023. The Apple Fifth Avenue store in New York City on September 22, 2023.

For signs of where the action is in the $7.5 trillion-a-day currency trading market, look no further than Apple Inc.’s balance sheet.

The technology giant is sitting on $135 billion in foreign exchange (FX) derivatives, some of which are used to hedge against currency fluctuations across its many markets. Alphabet Inc. has about another $60 billion of these contracts. In comparison, the world’s currency-focused hedge funds manage just $78 billion—combined.

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