5 Steps to Automate (and Optimize) Your FX Risk Management Program

03-10-2022 | treasuryXL | Kyriba | LinkedIn |

Companies of all sizes and industries with FX exposures are being impacted by global trade complexities. New dynamics are putting CFOs and treasurers’ FX strategies and their ability to explain results to the test. Automating an FX management program provides numerous advantages. Diminishing the need for manual involvement frees corporate risk, treasury, finance, and accounting teams from sourcing information manually from multiple systems, compiling and uploading it into spreadsheets and finally attempting to put all of this into a management report that is timely.

By Brian Blihovde
 Senior Director, Product Marketing

Source

Companies of all sizes and industries with foreign currency exposures are being impacted by a number of global trade complexities. For many, supply chain disruptions, interest rate, and price index increases are taking a toll on profitability. For many others, the impact from increased foreign currency headwinds is becoming the glaring reality unveiling weaknesses in FX risk management programs. CFOs are having a more challenging time predicting income statement impacts in both directions: favorable and adverse; neither direction is good, particularly for publicly traded enterprises. New dynamics are putting CFOs and treasurers’ FX strategies and the ability to explain results, to the test. Using leading practices supported by leading solutions helps CFOs and finance leaders overcome these challenges of reliance upon manual, spreadsheet-based workflows.

Whether your organization is starting, advancing, or reassessing your individual FX risk programs, there are levels of benefits, value and success metrics tied to how exposed and how uncertain your levels of fx risk management are. For instance, are you able to identify exposures, aggregate and categorize them? Are those balances generated from automated journal entries or is there a manual component? Across your systems, how well are market exchange rates used and applied across the ERP, GL, procurement, billing, or FP&A modules? How often? Finally, and probably one of the most overlooked attributes, how long does it take and the number of staff who participate in attempting to gain access to even a partial picture of your FX risk? How efficient is the draw of FX data? Ultimately much effort is put into converting that data into information and what do the lags in the timeliness of the information you, as CFO are using to make decisions? The answer lies in a company’s ability to invest in technology and process transformation that can stem from that investment.

Automating the FX Management Process

Diminishing the need for manual involvement or onerous workarounds, frees corporate risk, treasury, finance and accounting teams from sourcing information manually from multiple systems, compiling and uploading into spreadsheets and finally attempting to put all of this into a management report that is timely. The giving them more time to analyze information, track exposure trends and proactively seek out other opportunities to eliminate risk. Ultimately, automation transforms how treasury professionals are perceived within an organization, allowing them to be seen as a key resource in strategic planning. The implementation of an FX management program provides numerous advantages, but the three high-level areas for the entire finance organization and business divisions exist:

  1. A complete picture – Gain a clear understanding of how currency is impacting the entire organization and create reports to analyze exposures in real time
  2. Maximum control of the business – Gain confidence in data quality and exposure accuracy to be able to detect underlying details that are not obvious in manual spreadsheet environments
  3. Informed business decisions – Incorporate historical business cycles, trends and the business insights gained from having detailed data to make better hedging decisions and drive better FX management results
  4. Growth and Scalability / Integrating M&A – business expansion, in the form of acquiring new business units and attempting to run consolidations on them is hard enough. Automation through leading technology can help take advantage of acquisitions and eliminate delays in synchronization from outlier processes or legacy mismatches in risk policy

FX Risk Management Automation: Implications for your Organization

The use of technology does not merely indicate that the application of technology will result in system integration and process automation. Yes, this is one of the starting blocks of taking good processes and creating time-saving opportunities to generate better decision-making with cost-savings optimization. One focus of FX Hedge Management optimization will involve operational cost savings, but another focus should be on taking more of a role in assessing overall strategic success of your hedging through currency pair correlated VaR analyses and scenario analyses. Having more analytical power from technology automation can speed access to better information on your overall cost of hedging foreign currency risk.

Evaluating your FX Risk Program Operations

When evaluating your FX management programs, organizations should consider which of the following aspects of their FX workflow requires better efficiency and effectiveness:

  • Data collection automation can eliminate manual time spent on the collection of exposure data and enable teams make better decisions based on the most accurate information
  • Calculation and analysis of exposures automatically determines the impacts of rate changes, identify impacts that surpass materiality thresholds, and pinpoint accounting or posting issues
  • Hedging and trade preparation processes are pre-proposed from exposure information to ensure corporate decision strategy or policy application and trades are automatically prepared for submission following hedge approval
  • Compliance automation enables the standardization of compliance practices and ensures that documentation contains historical audit trails for reporting purposes
  • End-to-end workflow automation eliminates manual processes and human error for an improvement in both efficiency and security

Expanding Analytical Capabilities

Technology solutions should undergo assessment for various capabilities that are part of leading analytical aspects of the FX Risk program. For instance, portfolio VaR analyses can help companies create portfolio views or dive into targeted gross/net exposures while considering the cost of a hedge across specific currency pairs, portfolios. Automation for running simulations helps determine top hedging scenarios that your risk managers can analyze to determine what currency pairs to hedge and what the resulting net exposure and portfolio value at risk will be. Access to automated dashboards and FX business intelligence gives your treasury and finance leaders the ability to Identify strategies to reduce costs and improve the efficiency of your exposure management and hedging programs across specific parameters and filters. If you cannot choose various exposures, legal entity slices, or currency selections, you are not optimally running an automated or efficient FX program. Finally, FX trade desk workflow automation and confirmation capabilities for the back-office is often under-estimated as entering and executing FX trades is part of operational or physical workflows attributed to the program. However, the implications to generating entries, integration to trading or confirmation platforms makes this an integral part of FX Risk processes.

5 Steps to Create an FX Automation Roadmap

The goal is the create a plan and roadmap to optimize and transform the way your finance organization collects, analyzes, aggregates, and mitigates risk from foreign currency exposures. One suggested approach is to work with FX Advisors to help you understand where you are and how to get there. As always, having a plan, success measures tied back to value drivers helps programs succeed.

FX Improvement Steps Objectives, Guidance
1.
Identify Systems, Sources of Exposures
Often, there are a wide array and extensive network of foreign currency denominated transactions; and extremely unlikely to be creating offsets that could qualify as natural hedges. The inventory of systems in an extensive matrix is a very good starting point.
2.
Assess Integrity of your FX data, GL accounts, & source postings
Once the system landscape is understood, how well are the controls on your ERPs, ancillary systems and manual transactions coming from sub-ledgers? Are your financial statements subject to shifts from erroneous transactional impacts?
3.
Select and deploy technology targeting automation
Consolidating technology platforms into one risk management platform, allows finance organizations to save significant, material cost amounts and increase profitability from merely being accurate in their hedging activities. Fully automating your FX management program with technology, which entails modernizing data collection, exposure consolidation, calculation and analysis, and hedging recommendations, ensures an organization is operating in step with current FX best practices.
4.
Target a full, end to end solution
Your technology solution should provide for:
  • direct ERP data extraction and aggregation
  • exposure and risk analysis generation
  • automated risk transfer
  • VaR correlation analytics and scenario analyses
  • trade execution connectivity to banking portals and trading platforms using state-of-the-art, highly secure SaaS solutions
5.
Customizable, Flexible Business Intelligence
Reporting and dashboards create relevant and valued analytics at your fingertips with real-time speed and automation.

Kyriba’s FX Advisory Services professionals give you leading practice advice and guidance in identifying, assessing, measuring, and implementing positive FX Risk Management results across your people, processes and systems. Learn how to improve and transform your FX Risk Management profile into more predictable and effective hedging results

Learn more about Kyriba’s leading FX Risk Management solution and our FX Advisory Team today. Reach out to our team of FX Risk Management professionals at: [email protected]

Click here to view all blogs by Kyriba

LIVE SESSION | My Treasury Career Development & How the Register Treasurer education contributed

29-09-2022  treasuryXL | Treasurer Search | LinkedIn

 

Are you thinking about how you can shape your treasury career and in need for inspiration? There are plenty of education opportunities, but in what education will you invest?

 

 

You are invited to join our next Live Session. Registration is Now Open for:

𝐌𝐲 𝐭𝐫𝐞𝐚𝐬𝐮𝐫𝐲 𝐜𝐚𝐫𝐞𝐞𝐫 𝐝𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 & 𝐇𝐨𝐰 𝐭𝐡𝐞 𝐑𝐞𝐠𝐢𝐬𝐭𝐞𝐫 𝐓𝐫𝐞𝐚𝐬𝐮𝐫𝐞𝐫 𝐄𝐝𝐮𝐜𝐚𝐭𝐢𝐨𝐧 𝐂𝐨𝐧𝐭𝐫𝐢𝐛𝐮𝐭𝐞𝐝

There is no standard career path for treasurers but one can learn from the choices and developments of the successful ones.

In this webinar two graduated Register Treasurers will share their stories:

  • 🌟 Jurgen Wessel RT is interim Head of Treasury of SHV and has experience in a variety of international companies at HQ and treasury hub level.
  • 🌟 Frank van der Hoeven RT van der Hoeven used to be a banker, moved to the corporate side and currently is Treasury Manager at IMCD, well-known for many successful acquisition and integration processes.

They will tell you about how they moved between various stations and will pay special attention to the added value of their post academic degree: The Treasury Management and Corporate Finance programme (RT Programme) at the Vrije Universiteit Amsterdam (VU Amsterdam).

 

REGISTER HERE

 

Everyone is welcome to this webinar. This webinar is extra relevant for those who consider joining the RT programme.

🌟Moderator: Pieter de Kiewit of Treasurer Search

🌟Duration: 45 minutes

 

We can’t wait to welcome you next week!

Best regards,

 

 

Kendra Keydeniers

Director, Community & Partners

 

 

 

 

Download Kantox’s Budget Hedging Report

28-09-2022 | treasuryXL | Kantox | LinkedIn |

Are you a CFO or Treasurer drafting your upcoming budget? Find out how to set, defend and outperform your budget rate in Kantox’s exclusive new report.

Based on real industry insights, you can learn:

🔹 The best way to set a budget rate

🔹 How to delay hedge execution while reducing forecast risk

🔹 How to improve your budgeted profit margins

🔹 Top solutions to automate time-consuming processes

👉 Get your report here

CurrencyCast Season 3 is live!

27-09-2022 | treasuryXL | Kantox | LinkedIn |

Season 3 of Kantox’s #CurrencyCast is live! In the first episode, they examine companies that manage their FX risk via spreadsheets and how they may be exposing their business to a whole other type of danger, spreadsheet risk.

Agustin Mackinlay breaks down the dangers and pitfalls of spreadsheet risk and how it can slowly erode your FX risk management processes.

He walks us through:

🔹 What is spreadsheet risk?

🔹 How to recognise this type of risk

🔹 Where it can arise in the currency management process

🔹 How to manage and eliminate spreadsheet risk

It’s an FX masterclass, all in under 10 minutes.

👉 Watch the episode and read Kantox’s key takeaways here

What’s the best hedging program for your business? Take Kantox’s 1-minute assessment

26-09-2022 | treasuryXL | Kantox | LinkedIn |

Have you seen Kantox’s Currency Management Toolkit?

With rising interest rates, increasing inflation and today’s highly volatile environment, it’s more important than ever for your company to be protected against currency risk.

Take Kantox’s 1-minute assessment and discover the best FX hedging program for your business. You’ll find out which program can most effectively handle your FX needs, help you achieve your goals, and keep you ahead of the curve.

👉 Get started here

Factsheet: The TIS Solution Suite

21-09-2022 | treasuryXL | TIS | LinkedIn |

Introducing CashOptix, PayOptix, and RiskOptix features from TIS (Treasury Intelligence Solutions), which offer enterprises of all sizes and industries improved capability to handle crucial cash management, payments, banking, security, and compliance demands. Find out more about the benefits of each suite right away in this unique factsheet.

Get to Know the TIS Solution Suite

TIS classifies the unique capabilities they offer clients into three distinct categories; CashOptix, PayOptix, and RiskOptix. When combined, this cloud-based suite provides organizations of all industries and sizes with superior functionality to address critical cash management, payments, banking, security, and compliance needs.

You can find the factsheet here

Where did the treasury applicants go? | By Pieter de Kiewit

19-09-2022  treasuryXL | Pieter de Kiewit | Treasurer Search  LinkedIn

As treasury recruiters, we should know enough about corporate treasury to do intakes and screen candidates. Also, we should know the latest about what’s happening in the field of recruitment and so we read the publications of Geert-Jan Waasdorp of The Intelligence Group. I would like to share his latest, very interesting article and build the treasury connection.

By Pieter de Kiewit

Labour market pressures are not equally distributed among all employers.

I left a link if you want to read the full article but this is roughly what he says. There is a huge growth in people working since before covid. In parallel, there is a huge decline in active applicants. This pressure in the labour market is not evenly distributed among all employers. The ones that can find new employees can do so because of a strong employer brand and increased investments in own or external recruitment. Also, they are willing to decide quick and offer a better package.

So what does this mean if we project these findings on the corporate treasury labour market? My personal observation is that treasury staff is, on average, less driven by the company brand and more by the job content than candidates from other job types. We learned this working for clients like Tesla and Nike. Employer branding specifically towards treasurers would also be hard, I cannot envision a corporate recruiter promoting his manufacturing company at Eurofinance.

How to adapt?

The obvious low-hanging fruit is that the hiring manager, already at the start of the process, has to organise and choose a mindset in the following: being able to decide quickly, from fewer candidates than before, and offering more than the old standard. Even highly skilled recruiters sometimes underestimate these aspects over time.

The judgement if the internal recruitment team is equipped to tackle the search or whether an external one should do the job – we, Treasurer Search – I will not elaborate on here. What I do want to mention is another obvious source that can be opened. For some of us that are considered a paradigm shift: bringing treasury talent in from abroad, from within the EU or even sponsoring a work permit. I am aware that some of us consider this topic highly political. What I can tell, both from our own organisation, as well as from successful placements with our clients, that this can be a very successful solution. In the Dutch labour market already the majority of candidates placed by us is non-Dutch. This is not a plea to open the borders and not be critical. Regretfully we have examples where this solution did not lead to success as coming to The Netherlands can be hard for the new employee. But also locally found candidates can fail in their new job.

My conclusion is that indeed, the world is different, as is the labour market. And given current demographic developments I do not expect a shift back. Luckily there are solutions but we will have to accept the consequences and cannot lean back. Those that do will shrink and go extinct.

Good luck in your search,

Pieter

 

 

 

 

 

 

 

Thanks for reading!

Pieter de Kiewit

Could Stablecoins Drive Payment Innovation?

12-09-2022 | treasuryXL | Kyriba | LinkedIn |

Despite the current market volatility, cryptocurrencies(1) are slowly seeping into everyday transactions,(2) driven largely by small businesses. There are an estimated tens of thousands of businesses that are accepting cryptocurrencies as payments roughly representing about 0.01% of businesses worldwide.

By Rishi Munjal, Vice President Product Strategy, Payments, Kyriba

Source

Could Stablecoins Drive Payment Innovation?

Large corporations have stayed away from cryptocurrencies with a few exceptions(3) where the use is limited to holding cryptocurrencies in treasury. The treatment of cryptocurrencies as an “indefinite-lived intangible asset”(4) poses an accounting risk, forcing companies to write down(5) the value of these assets when their value plummets.

Global Cryptocurrency Acceptance Chart

The level of adoption is by no means impressive. Meanwhile, challenges with high-fees, scalability and volatility will continue to limit broad adoption of cryptocurrencies as a form of payment. Such limitations pose an important question for CFOs and treasurers: Are cryptocurrencies worth paying attention to?

Stablecoins and the Future of Payments

The answer is yes, given the potential for innovations that can shape the future of payments for corporates and merchants alike. This is especially true for Stablecoins(6), as they present an opportunity to lower fees, reduce barriers and drive better services like instant cross-border payments. The promise hinges on a stablecoin’s ability to maintain its peg to a specified asset (typically U.S. dollars), or a pool or basket of assets, and provide perceived stability when compared to the high volatility of unbacked crypto-assets.

Since the launch of BitUSD in 2014 on the BitShare(7) blockchain, stablecoins have evolved into public and private stablecoins. Public stablecoins exist in two forms. Reserve-backed or custodial stablecoins are backed by cash-equivalent reserves such as deposits, Treasury bills and commercial paper. These are issued by intermediaries who serve as the custodians of the cash equivalent assets and offer a 1-for-1 redemption of their stablecoin liabilities for the asset it is pegged against.

Algorithmic stablecoins (e.g.,UST) rely on mechanisms other than cash-equivalent reserves to stabilize their price. The peg to a specified asset is achieved by overcollateralized crypto and/or smart contracts that defend the peg by automatically buying or selling the stablecoin. These public stablecoins provide liquidity across the thousands of cryptocurrencies currently in the market. The private institutional stablecoins use tokenized deposits held by the bank for efficiently providing internal liquidity or liquidity for the bank’s wholesale clients between accounts held at the same bank. These coins (e.g., JP Coin) form a closed loop payment network similar to the ones offered by wallet providers like PayPal.

Stablecoin Guidance

Stablecoins have had their share of troubles(8) and collapses(9) in their short history. These risks were well understood by regulatory agencies. However, the explosive growth in cryptocurrencies has made it difficult if not impossible for regulators(10) to keep up. Outside of the ad-hoc enforcement actions against crypto firms by the SEC(11), the industry continues to operate largely outside of regulations. Given the complexity of the crypto ecosystem, it is pragmatic for regulators to start with Stablecoins as they are relatively simpler and have real applications. It is therefore not a surprise, that despite the market turmoil, New York became the first U.S. state to issue guidance for Stablecoin issuers.

The Virtual Currency Guidance(12) provided by the New York Department of Financial Services (DFS) outlines redeemability, reserve and attestation requirements for entities issuing U.S. dollar-backed stablecoins. The industry has been waiting for long-overdue commonsense regulations for reducing systemic risk and providing a fertile ground for stablecoin issuers and other fintechs to drive broad innovation in financial services and payments.

Table 1: Key points from The Virtual Currency Guidance provided by the New York DFS

Backing and Redeemability
  • Fully backed by safe reserve assets like T-Bills, Notes and Bonds
  • Market value of the reserve is at least equal to the nominal value of all outstanding units of the stablecoin as of the end of each business day
Reserve
  • Segregation of reserves from the proprietary assets of the issuing entity
  • Must be held in custody with U.S. state or federally chartered depository institutions and/or asset custodians.
Attestation
  • American Institute of Certified Public Accountants (“AICPA”) standard
  • Examination of management’s assertions at least once per month by an independent Certified Public Accountant (“CPA”) licensed in the US

Kyriba has taken a forward looking posture in this space, for example via partnership with Copper to offer corporate treasury direct access to Copper’s award winning digital asset investment platform, and the ability to manage liquidity across fiat, crypto and money market funds.

While the specific time-horizon on when a trend would become meaningful is not easy to predict, CFOs and treasurers can preserve optionality by partnering with providers that stay at the forefront of payment market trends.

More to Read:

  1. API: Copper Integration
  2. Blog: The Top 5 Trends for CFOs in 2022
  3. Blog: Digital Currencies: Not Ready for Corporate Treasury

References

(1) FSB defines all private sector digital assets that depend primarily on cryptography and distributed ledger or similar technology as crypto-assets and not currencies; for this article the two terms are being used interchangeably.
(2) Map of Cryptocurrency ATMs and Merchants, Coinmap.org
(3) Public companies holding bitcoin, Coingecko.com
(4) Accounting for and auditing of digital assets
(5) MicroStrategy Posts a Loss After Taking Bitcoin Impairment, Bloomberg 2/22
(6) Financial Stability Board, Crypto-assets and Global “Stablecoins”
(7) Whitepaper: BitShares – A peer-to-peer polymorphic Digital Asset Exchange
(8) Terra Luna timeline; TerraLuna UST collapse – What Happened?
(9) CFTC fines Tether and Bitfinex for misleading claims; Panics and Death Spirals: A history of- failed stablecoins
(10) Stablecoin risks and potential regulations, BIS Working Paper 11/2020
(11) Crypto Assets and Cyber Enforcement Actions, notes seven enforcement action for the period Jan – April 2022
(12) Guidance on issuance of US Dollar backed stablecoins, New York Department of Financial Services, Jun 2022

Click here to view all blogs by Kyriba

RECORDING | Deep dive session: The Philosophy of the Treasury Management & Corporate Finance programme

07-09-2022 | treasuryXL |  VU Amsterdam | LinkedIn |


The recording of the Deep Dive Session about The Philosophy of the Treasury Management & Corporate Finance programme is Now Live.

Duration: 49 minutes

 

Request Recording

 

Since 1998, the School of Business and Economics of the VU University offers the Post Graduate programme: Treasury Management & Corporate Finance. The programme focuses on professionals with an academic background in economics and/or finance and at least five years’ work experience in the financial sector. The philosophy of the programme is to develop ‘Treasury Academic Professionals’, able to analyze complex treasury management & corporate finance issues independently or in multidisciplinary teams and solve and report on them. The programme differs from other programmes/courses in the field of treasury management & corporate finance through the emphasis on developing graduates as ‘Treasury Academic Professionals’ and less emphasis on knowledge accumulating, readily available in the market.

THE 3 PILLAR APPROACH TO BECOME A TREASURY ACADEMIC PROFESSIONAL

 

SPEAKER INFORMATION

Robert Dekker is Associate Director at KPMG Netherlands. He studied Economics at the University of Groningen and did an Associate’s Degree in Risk Management at the University of Pennsylvania.

He is also programme manager for Risk Management for Financial Institutions and Treasury Management & Corporate Finance at the Vrije Universiteit Amsterdam.

Professor Herbert Rijken is Full Professor Corporate Finance at the department of Finance at VU University Amsterdam. He obtained his PhD (1993) in Physics at Eindhoven University of Technology.

His current research interests are corporate credit risk, structured corporate finance and economics of corporate governance.

 

Request Recording

 

Corporate Treasury Data Insights Refinitiv

07-09-2022 | treasuryXL | Refinitiv | LinkedIn |

 

The USDCNY historical volatility, the expert webinar on Inflation Growth & Markets, Refinitiv Corporate Treasury Newsbeat and much more. All summarised in the new Corporate Data Insights by Refinitiv.

Chart of the Month

Chart of the month

1M and 3M USDCNY historical volatility 

 

Our Chart of the Month shows 1-month volatility (in orange) and 3-month volatility (in green) for the USDCNY currency pair. It clearly demonstrates huge implications for those hedging CNY exposures.
The combination of USD rate tightening and Chinese rate easing since the start of the year – reflecting a weakening Chinese economy and Covid-19 restrictions – has meant a stronger USD, a sell-off of Chinese bonds, and significantly elevated USDCNY volatility.
Ahead of the November US mid-term elections, commentators are watching to see if Biden’s inflation imperative might outweigh the US response to China’s actions towards Taiwan. Our news partner, Reuters, unpacks this conundrum in more detail.


The Biden administration has been forced to recalibrate their thinking on whether to scrap some tariffs or potentially impose others on Beijing, according to sources familiar with the deliberations.
It has considered a combination of eliminating some tariffs, potential additional tariffs, and expanding a list of tariff exclusions to aid U.S. companies that can only get certain supplies from China.
Additional tariffs would make Chinese imports more expensive for U.S. companies, and subsequently makes products more costly for consumers. However, bringing inflation down is a major goal for Biden ahead of the November mid-term elections.
Politically there is a delicate path to tread, but recent market dynamics may suit US policy makers.

[Webinar] Inflation, Growth and Markets: Hear from the Experts |

Economies around the world are enduring inflationary pressures not experienced in decades. Rising cos

ts triggered by supply chain interruptions and wage demands as economies roared back to life post-COVID were compounded in February by Russia’s invasion of Ukraine, disrupting crucial commodity supplies. Join a panel of expert Reuters editors to discuss the issues and hear from Refinitiv’s Director of Macro and Economics on how to use Workspace and Eikon product enhancements.

How are digital assets used to evade sanctions?
There is a growing concern that criminal networks may seek to circumvent global sanctions through the use of cryptocurrency. Refinitiv is working on promoting a more coordinated global response to financial crime, focusing on protecting the digital asset space. How can we respond to the challenge? >
Everything flows: Green equity funds go red for the first time since COVID meltdown

After a volatile start to July, the FTSE 100 crept up a touch less than 250 points over the month, with other equity markets globally turning upwards in a similar fashion from late June recent lows. At the same time, the yield on the benchmark 10-year gilt was squeezed by about 90 basis points. Fund flows, however, do not reflect this—at least at the most broad-brush asset class level, with redemptions excluding money market vehicles running to £7.9bn.  Find out more about recent asset flow trends >

Breakingviews: D.C. turf war opens crypto regulatory arbitrage 

 

Cryptocurrency ventures can divide and conquer Washington’s regulatory fiefdoms. The U.S. Federal Reserve staked out its turf this week, telling lenders to notify it if they offer services for bitcoin and its ilk. Other agencies are also wrestling to oversee the $1 trillion market. The scrap provides an opportunity for some industry participants, but it hurts token owners. Read on >

Deep U.S. curve inversion hastens the recession it predicts 

An inverted U.S. Treasury yield curve almost always heralds recession, but the yawning gap between high short-term funding costs and falling long-term borrowing rates may accelerate the economic downturn it presages. Reuters columnist Jamie McGeever looks at the potential impact of an inverted U.S. treasury yield curve.

Refinitiv Corporate Treasury Newsbeat

Refinitiv issues consultation on Tokyo Swap Rate benchmarks |  Refinitiv announced the publication of a consultation paper regarding the Tokyo Swap Rate benchmarks. Refinitiv administers Tokyo Swap Rate, a Japanese yen (JPY) interest rate swap (IRS) benchmark family, which is used in the valuation of swaptions, CMS, structured loans and notes, FRNs and private finance initiatives. Read more here >
Bulgarian Stock Exchange powers sustainability index with Refinitiv ESG metrics |  The Bulgarian Stock Exchange (BSE) announced it has adopted Refinitiv’s Environment, Social and Governance (ESG) metrics to power its sustainability index set to be launched end of 2022 Read more here >
Refinitiv to launch forward looking term rate versions of ARRC recommended fallback rates this September to facilitate industry transition from USD LIBOR |  Refinitiv announces that it intends to launch forward looking term rate versions of its ARRC recommended fallback rates – USD IBOR Cash Fallbacks – in September 2022. This follows the Alternative Reference Rates Committee’s (ARRC) March 2021 announcement that it had selected Refinitiv to publish its recommended fallback rates for cash products and Refinitiv’s November 2021 announcement that it had released production fallback rates based upon various SOFR conventions.  Read more here >
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