Instimatch Global digitaliseert geldmarkt met online network

| 25-10-2018 | by Instimatch Global | treasuryXL

De geldmarkt geldt als één van de laatste bastions binnen de financiële sector waar transacties nog grotendeels via de telefoon worden afgesloten. Hierdoor limiteert de handel zich vaak tot bepaalde landsgrenzen en wordt de efficiency beperkt.

Via een nieuw online platform digitaliseert Instimatch Global de handel in geldmarktproducten en vergroot daarmee de mogelijkheden voor klanten om liquiditeit te vinden-, dan wel uit te zetten, met een efficiëntere prijsvorming- en executie als gevolg.

Het hoofdkantoor van Instimatch Global bevindt zich in Zwitserland (Zürich) en na een eerste uitbreiding naar Duitsland, is onlangs ook een vestiging in Amsterdam geopend. De opening van een vestiging in Londen wordt op korte termijn voorzien.

Instimatch Global is opgericht als reactie op de financiële crisis van 2008, waarna het idee ontstond om een platform/network te creëren waarop een grote groep van diverse institutionele partijen, variërend van o.a. corporate treasuries, bank treasuries, verzekeraars e.a., onderling kunnen handelen om zodoende een efficiëntere allocatie van liquiditeit te bewerkstelligen.

Het direct bij elkaar brengen van zo veel mogelijk verschillende tegenpartijen op één scherm, waarbij de gebruikers een “live” en handelbaar overzicht van de markt te zien krijgen, creëert de mogelijkheid voor een krappere bid/offer spread, terwijl door de digitale executie de transactiekosten lager zijn vergeleken met de huidige manier van handelen via de telefoon.

Voor meer informatie kunt u contact opnemen met Instimatch Global.

Instimatch Global zal ook aanwezig zijn bij de DACT Treasurybeurs op 16 November aanstaande in Noordwijkerhout.

Instimatch Global AG Herengracht 282; 1016BX; Amsterdam.
T: 0031 (0)20 521 9325; E: info@instimatch.com; W: www.instimatch.com


Roel Schuring – Head of Sales Benelux at Instimatch Global

 

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Treasury Services at the DACT Treasury Fair

| 20-11-2017 | treasuryXL | Treasury Services |

The DACT (Dutch association of Corporate Treasurers) will be holding their annual Treasury Fair in Noordwijk at the Hotel van Orange on 23rd and 24th November 2017 – the most important annual treasury event in the Netherlands. Discover treasury best practices, learn about the latest trends and exchange experiences. It will contain 9 practical workshops spread out throughout the day on topics including, among others, trade finance, supply chain finance, liquidity forecasting, cyber security and the Blockchain. There are more than 50 exhibitors present at the Trade Fair including Treasury Services- a partner of treasuryXL.

Company Profile

Treasury Services structurally improves the bottom line of its clients by cutting their costs and by improving their efficiency in finance. We create a competitive advantage for our clients by implementing innovative solutions. Treasury Services offers Treasury Consultancy & Advice, Treasury Management Software, Treasury Training & Education and Financial Engineering Solutions. With these building blocks we can create complete solutions in Treasury Management, Cash Management, Risk Management, Corporate Finance and Treasury Control. Treasury Services has an international portfolio of corporates, financial institutions and non-profit organisations as clients.

Treasury Services recently strengthened its FX Risk Management Advisory services by entering into a partnership with Rob Beemster of Barcelona Currency Experts. (See Press release). Rob will also be present personally during the DACT Treasury Fair.

For the DACT Treasury Fair we have developed an FX Quick Scan which gives interested companies an immediate insight into their FX situation. As a result of this “few minutes” survey, companies can decide to make an appointment with Treasury Services for a more in-depth discussion / analysis of the FX situation of their company. Read more on their website.

If you are at the Treasury Fair, please take your time to visit their stand and mention treasuryXL.

We wish Treasury Services success at the DACT Treasury Fair!!

If you want to find out more about Treasury Services and their services and products please refer to their company profile on treasuryXL.

Waarom organisaties de online treasury toolbox gebruiken

| 27-6-2017| Arnoud Doornbos | Sponsored content |

Met een bepaalde frequentie moeten financiële instrumenten en dus ook derivaten gewaardeerd worden. Ondernemingen die volgens de IFRS verslaggeving regels rapporteren, moeten bijvoorbeeld de marktwaarde van de derivaten op hun balans rapporteren en de veranderingen van deze marktwaarde verantwoorden in de resultatenrekening. Andere mogelijke redenen waarom de waarde van een derivaat moet worden berekend, is in het geval van tussentijdse beëindiging of wanneer een bank het kredietrisico uit hoofde van een derivaat wil berekenen.

In praktijk blijkt dat deze waardering van derivaten vaak lastig is voor bedrijven en daarom wordt uitbesteed aan (dure) consultants.

Treasury Services heeft daarom nu een revolutionaire online Treasury Toolbox gelanceerd.
De  Treasury Toolbox levert transparantie in de steeds complexere wereld van waarderen van derivaten.
Met dit tool kan vanaf nu de accountant, de controller, de treasurer, de finance manager en de CFO zelf gemakkelijk de berekeningen doen. De zeer gebruiksvriendelijke Treasury Toolbox is online in de cloud verkrijgbaar.

De analyse tools zijn ook beschikbaar om de consultancy diensten te vervangen door online tools.

Wat biedt de Treasury Toolbox?

Onafhankelijke waarderingsinstrumenten 

Instrumenten voor het bouwen, analyseren, prijzen en vergelijken van financiële transacties en derivaten volgens de laatste marktpraktijken via multiple curve bootstrapping.

 

Bij de lancering van de Treasury Toolbox zijn pricers voor gecollateraliseerde rentederivaten in AUD, CAD, CHF, EUR, GBP, JPY en USD beschikbaar gesteld. Dit zal uitgebreid worden met meer prijsinstrumenten. Ook het aantal munteenheden zal worden uitgebreid.

Business analyse instrumenten

Instrumenten voor het analyseren van bedrijfsprojecten of reeks gecommitteerde en verwachte kasstromen. De instrumenten zullen de risico’s analyseren, de marktprijs (reële waarde) van de risico’s berekenen en het zal effectieve hedges berekenen vanuit een risicomanagementperspectief.  Meer analyse instrumenten zullen binnenkort worden gelanceerd. Ook het aantal munteenheden worden uitgebreid.

Waarom onafhankelijke (her)waarderingen?

Regelgevende vereisten
(EMIR, IFRS, MiFID) Met het voorop gestelde doel om een ​​stabieler banksysteem te vormen, hebben autoriteiten onafhankelijke en dagelijkse waarderingen nodig. EMIR, IFRS, MiFID, AIFMD, ICBE en KID PRIIPS zijn voorbeelden van externe stakeholders die onafhankelijke waarderingen nodig hebben. 

Verbeterde collateral management
De Treasury Toolbox instrumenten kunnen dienen als een onafhankelijke bron om een ​​correcte berekening van collateral te verstrekken die uitgewisseld worden op uitstaande derivaten. 

Check de tegenpartij (bank) prijs
Derivatenprijzen zijn voor veel organisaties een “zwarte doos” geworden. Niet alleen de wiskunde die moet worden gebruikt, maar ook de inputvariabelen zijn onbekend voor veel organisaties. De Treasury Toolbox instrumenten leveren een correcte reële waarde berekening voor derivaten met collateral.

Vermindering van het reputatie risico
Door gebruik te maken van instrumenten die een juiste reële waarde berekening maken, kunnen onaangename verrassingen worden vermeden omdat u in controle bent.

Risicomanagement
De Treasury Toolbox online markt instrumenten verhogen de juistheid van het risico management en waardeert met uitgebreide risk-return informatie.

Outsourcing
De Treasury Toolbox instrumenten maken het mogelijk om de steeds complexere processen met betrekking tot de fair value berekeningen en risicoanalyses uit te besteden.

Waarom organisaties de Treasury Toolbox gebruiken

Best Practice (her)waarderingen
De Treasury Toolbox instrumenten maken gebruik van de meest recente inzichten uit de financiële markten hoe derivaten en gestructureerde producten geprijsd en geanalyseerd moeten worden.

Transparantie
Samen met de online training “Modern Bootstrapping” uit de Treasury Academy levert de Treasury Toolbox transparantie over hoe deze berekeningen worden uitgevoerd volgens de laatste inzichten van het prijzen van derivaten.

Controleerbaarheid
De Treasury Toolbox instrumenten verrichten de berekeningen en de analyse precies zoals uitgelegd in de training “Modern Bootstrapping”, die online beschikbaar is in de Treasury Academy. Door inzicht te geven in de wiskunde en de invoergegevens in de modellen, is de oplossing transparant geworden.

Kosten efficiëntie
In de Treasury Toolbox kunt U kunt kiezen uit verschillende concurrerend geprijsde abonnementen voor de diverse prijs en analyse instrumenten.

Directe beschikbaarheid in de Cloud
De diverse prijs en analyse instrumenten kunnen op elk apparaat, op elke locatie en op elk moment via ons beveiligde online SAAS-platform worden gebruikt.

Advanced Portfolio Management T
Transacties kunnen in een portefeuille worden opgeslagen en alle rapporten kunnen worden geëxporteerd.

 

Met de Treasury Toolbox hebben organisaties nu een zeer krachtige tool beschikbaar welke voor vele doeleinden ingezet kan worden.

De Treasury Toolbox is te vinden op de website van Treasury Services.
Treasury Services geeft ook demonstraties en gebruikers trainingen van de diverse instrumenten uit de tool. Dit kan op locatie maar ook online op afstand.

 

 

 

Arnoud Doornbos

Associate partner at ILFA Group

 

 

Basel III and the impact on cost of hedging

| 30-3-2017 | Arnoud Doornbos | Treasury Services |

Corporates will save hedging costs and administrative costs significantly if they shift their hedging activities to exchanges such as CME (Chicago Mercantile Exchange).
In the summer of 2007 a large number of defaults on U.S. mortgage loans did arise. The banks were hit hard by the global domino effect that resulted. A major financial crisis which was followed by an economic crisis led to a revision of the capital requirements of Basel I and Basel II.

New Basel III

The core of Basel III is that many banks have to hold more capital and liquidity to their outstanding investments than they used to in the past. The rules are implemented as from 2013 and should eventually be fully effective in 2019.

Basel III will be a huge challenge for banks in the coming years. The impact on the pricing of financial products and transactions between banks and their clients will be significant.
Since July 2008, the Basel Committee for Banking Supervision has been working on Basel III for all banks worldwide. The European Commission has introduced three Capital Requirements Directives which contains concrete actions and requirements in terms of risk, capital and liquidity management within a bank. The new requirements, part of Basel III, aim to improve the quality and level of capital reserves of banks.

The capital requirements of certain products have increased and banks are encouraged to create additional capital buffers during good economic times so that they are better positioned to absorb losses during periods of economic stress.

Impact of Basel III on liquidity management

Besides sharpening the capital requirements Basel III has a major impact on liquidity management. The new liquidity standards are based on a stress test. In addition Basel III also introduces new long-term liquidity standards that reduce the mismatch between the maturities of assets and liabilities.
Banks will have to increase their reserves sharply in the coming years. Previously, banks only had to keep 2 % capital to their outstanding investments. Now with Basel III this capital requirement has been increased to 7 % (4.5 % hard buffer and an additional 2.5 % margin in bad times) . As a result banks will probably not distribute their profits in the coming years but will add to their capital buffers. Furthermore many banks will have to issue new shares in order to attract extra money in order to meet the new demands.

Counterparty risk

Within Basel III it has been determined that capital must be held for the credit risk on a counterparty a bank is exposed to in OTC derivatives or equity financing transactions. In addition, market participants are encouraged to take one central counterparty (clearing houses) for OTC derivatives. Any time a bank takes a risk against another party the probability of default exists. To offset this concern, and to support on-going stability within the interbank market, banks have long emphasized the importance of measuring and managing counterparty risk. Now banks have becomes noticeably less comfortable trading with other counterparties including other banks.

The recent deterioration in credit ratings that has hit many U.S. and European banks has led to a heightened sensitivity over counterparty risk. These apprehensions may not be voiced directly, but they become evident when front office trades that would have cleared in the past, no longer do because credit lines have been reduced. There is increasing focus on limiting exposures, even among global banks. And that is starting to affect the way we do business.
CVA (Credit Valuations Adjustment) desks have grown in popularity, as banks seek more effective ways to manage and aggregate counterparty credit risk.
The market has changed now in terms of how counterparty credit risk was calculated. Now, no client is assumed to be truly risk free. Different prices are now expected for different clients on that same interest rate swap, depending on variables including the client’s rating and the overall direction of existing trades between both parties.
On all new interest rate, FX, equity, or credit derivatives, CVA desks price the marginal counterparty risk for inclusion into the overall price charged to the client. CVA is a highly complex calculation.

CVA looks at default through the spread of the counterparty. A swap facing a single B credit that trades at 1200 in CDS is going to be charged a lot more than the same swap facing a AA counterparty. The CDS spread is normally a core input of CVA pricing.

What we see in practice is that in the manual process, the CVA desk team of a bank often passes along suggestions to the salesperson for improving the credit risk in a trade and enabling the sales person to offer the trade at a lower credit price. Examples of that would include improving the collateral agreement with a client, or inserting a break clause.
In the traditional CVA approach, a bank accepts a new trade, takes a fee and uses that fee to buy good hedges for all the risks in that trade. These hedges should eliminate all of the bank’s risk, but this is not necessarily the case once Basel III is taken into account.

Basel III does not recognize all types of hedges that the bank might want to use. Therefore the regulatory capital for certain trades will not be zero, even if the bank has used the full CVA fee to hedge all its risks.
The first impact Basel III has on CVA desks is on pricing. Pre-deal pricing needs to be reviewed to ensure the costs of imposed regulatory capital are covered. If not, additional pricing may need to be added. And the decision on which risks are efficient to hedge also becomes affected not just by strategic or business reasons, but also by the regulatory capital impact.
As part of Basel III’s updated regulatory capital guidelines, a new element has been added: V@R on CVA. Regulators have specified very precisely how the underlying CVA must be calculated for this charge. Banks will therefore need to decide whether to adjust their pricing and balance sheet CVA to match the Basel III rules, or to use different CVA calculations for pricing and regulatory purposes.

EMIR / Dodd-Frank

The Dodd-Frank / EMIR financial reform bill gives a new set of derivatives rules that either will clean up the market or send the world spiraling off the deep end. The truth is probably somewhere in between. The crux of the derivatives regulation is the requirements that standardized swaps be centrally cleared and traded on a Swap Execution Facility, or SEF. This moves derivatives from bilateral agreements between bank and client to centrally cleared products where credit risk is no longer bank-held, but is centralized in a clearinghouse where daily margin is managed. Once clearing is in place, customers no longer are locked into a single dealer, long and short positions can be netted, and SEFs can begin to match buyers and sellers without having to worry about the credit lines of each counterparty or dealer.

This will begin the migration of the derivatives business from a principal-based OTC market toward an agency-based bid/offer SEF market.

Treasury Services’ analysis:

  • Hedging is penalized decreasing the liquidity in the markets leading to increased costs to hedge financial risks for corporations. This is further emphasized by the penalization of the interbank markets through requirement of more capital, and additional constraints on liquidity on interbank transactions.
  • There will also be an increase in administration costs for corporates costs due to EMIR.
  • Corporate credit by banks is penalized: More capital is required in general. For back-up facilities on commercial paper programs it is required that banks will have to have 100% of liquid assets whilst these facilities are fully undrawn. The cost of carry will obviously be invoiced to the client. The ability of the bank to borrow long term will determine the availability of back-up facilities.
  • Restrictions in maturity mismatch (including for repayments) are introduced. This may mean that the risk of borrowing short term to finance long term investments will be transferred to the corporate sector.

The advantages of the OTC market compared to exchanges has become questionable. High cost savings can be achieved by shifting your hedging activities to exchanges such as Chicago Mercantile Exchange (CME).
Shifting hedging activities to an exchange such as CME requires changes in your risk management function. This supplies the possibility to bring the cost of hedging back in your control.

 

Arnoud Doornbos

Associate Partner

Treasury Seminars in Antwerp and Montfoort – a short summary of two successful events

| 15-3-2017 | Treasury Services | PowertoPay | sponsored content |

The last two Thursdays, the PowertoPay, SWIFT and TreasuryServices Treasury Seminar was held in Montfoort and Antwerp. We’re happy to say that it was a success! We got a lot of positive feedback during and after the seminars. Both had the same content but were hosted on two different days. The first one was held in Antwerp, Belgium on the 2nd of March in an old monastery (Elzenveld). The second one was held in Montfoort, The Netherlands on the 9th of March in the Heeren of Montfoort. 

During the seminar several treasury topics were highlighted. After a short opening speech by Bas Huisman, co-founder of PowertoPay, we started with a presentation about the importance of bank independency. Arnoud Doornbos from Treasury Services was talking about financial history lessons but also the current financial situation that makes it really important for companies to look into bank independent solutions.
After that Rob Rühl from Next Markets presented his view of the influences of Brexit on the Dutch and Belgian economy.
Next was a presentation by Hans de Vries, PowertoPay consultant, telling about the end of Notional Pooling and Basel III. He also presented the Payment Hub of PowertoPay and how this is beneficial for companies.
After this Jan Vermeer from TreasuryServices talked about bank independent cash pooling through software, something TreasuryServices developed for companies who wish to operate much less dependent on their banks if it comes to cash management.
Last but definitely not least, we had a client case presented by Michel Steenbergen from DIF. He informed everyone about how the two solutions mentioned above come together in practice. DIF uses a combination of PowertoPay’s Payment Hub  and TreasuryMetrics from Treasury Services and created a perfect solution for their complex cash management processes. After both of the seminars we had a drink and some food with the participants.

Our Treasury Seminar was a great opportunity to inform everyone about the current situation of the financial world and how to participate in changes that are occurring. Being bank independent is becoming increasingly important because of the fast development of financial technologies and changing laws. What we see lately is that components of banking products and services are being redeveloped by the FinTech Industry. These FinTech solutions are smarter, faster and better. As a result we now see that different FinTech companies work together. Individual Fintech products often turn out to be complementary to each other. FinTech companies now recognize that collaboration with other FinTech companies leads to high growth and a better product range.

PowertoPay –  Claire van Ingen

Treasury Services BV – Arnoud Doornbos

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