Okay, so we've ran through how the cross border cross currency pool works as in a combination of both cash concentration and notional pooling. You can also call this cross currency interest optimization. The basic concept is that the bank takes away the interest spread it would normally make on debit and credit positions. I.e. it offers a fixed rate of interest no matter whether the balance is in deficit or in surplus. So if the fix is, it's one point a half percent on the US dollars, it doesn't matter whether it is deficit or surplus, the interest rate applied will be 1.5% to the actual balance. Now, many corporates refer the cross currency notional pooling solution because the reality is there is no FX involved. If you've got fixed Euro positions in your daily trading euros across your group entities, you do not want to be selling all of your Euros at the end of the day to cover a Dollar position and then waking up the next morning and having to sell a load of Dollars to get some Euros so that then you can actually process your transactions in Euros. What you want is what this solution does in the background. It uses some fixed effects rates, converts the Euros $2, and then does the interest calculations on those US dollars at the agreed rate. The big area of negotiation here is confirming what the base currency is going to be for the cross currency notional pool and what the interest rate is that's applied to that account. Now, the full vision of liquidity is to be able to offer multi-currency pools wherever possible. In Europe, these tend to be based out of London, Amsterdam, or Dublin. The reason for this is that the right regulatory environment, if you look wider field, you can also do this type of operation, say out of Hong Kong or Singapore, and there are other jurisdictions in the world that do allow it as well. Now of course, as we've already mentioned, for this to work, all the cash has to be physically moved to one single financial center. Hence, in Europe the areas that are promoted do tend to be London, Amsterdam, and Dublin. It's fair to say that after Brexit it would appear Dublin is getting even more popular. Now with enhanced interest, the actual physical balances have to stay in the country because enhanced interest is about enhancing interest for cash that is possibly trapped in countries. So where you have areas of the globe where it is difficult to move your cash out of the country, for example, India. So for banks have a natural footprint in India, this can be a way that they can offer an improved cross currency pooling arrangement than banks that do not really have an operation in in India. This is due to the fact that those with the natural footprint in India, or offered to enhance the rate of interest in that country, whereas otherwise the rate of interest that would be paid in that country would be relatively low. Now we'll look at this in more detail as we progress.
