BCR Publishing
We are the leading provider of news, market intelligence, events and training for the global receivables finance industry.
Working with industry leading organisations, experts, governments and universities, BCR Publications delivers expertise in factoring, receivables and supply chain finance to a global audience.
BCR has long been a beacon of innovation and excellence in the realm of receivables finance, playing an instrumental role in shaping the industry’s international landscape. Through its comprehensive conferences, insightful publications, and thought leadership, BCR has facilitated crucial dialogues and connections among industry professionals, driving forward the development of receivables finance globally.
Follow BCR Publishing
Free passes
For corporate treasurer roles/functions!
How does liquidity forecasting accelerate growth: Cashforce @ DACT Treasury Fair
| 17-11-2017 | treasuryXL | Cashforce |
Company Profile
Cashforce is an innovative Cash & Treasury Management System, focused on automation and integration. As a ‘next-generation’ Cash management solution, Cashforce helps finance/treasury departments save time and money by offering accurate cash flow forecasting, flexible treasury reporting & automation.Cashforce is unique in its category, because it allows users to drill down to the transaction level details and the system integrates seamlessly with ERP systems & banking systems. In addition, an intelligent simulation engine enables companies to consider multiple cash flow scenarios and measure their impact. As a result, finance / treasury departments can be turned into business catalysts for cash generation opportunities throughout the company.
Workshop
Cashforce will be co-presenting a Workshop at 13:45, entitled How does Liquidity forecasting accelerate growth and what’s the role of the treasurer
The 2017 Global Treasury Benchmark Survey from PwC shows that companies worldwide hold a staggering $ 1.1 trillion (!) of excess liquidity in their business operations. These hidden liquidities can be tracked by an accurate and automated cash management and forecasting process. These can then be used to lower the company’s working capital or to realise additional growth.
Setting up an automated cash management & forecasting process has at last been made possible as a result of technological progress. Currently, 87% of treasurers still use manual spreadsheets. However, this process can be organised much more efficiently.
To demonstrate how this can be achieved, this workshop sets out the challenges of accurate cash flow forecasting, supported by a case study presented by the Interfood Group.
With $ 1.4 billion in annual revenue, Interfood is one of the leading global dairy traders and suppliers. Through 15 global offices worldwide, Interfood distributes over 800,000 MT of dairy products a year. Together with Cashforce, Interfood has set up an automated cash forecasting process. The case will be presented by Vincent Almering (Finance Director Interfood B.V.). Vincent has led the project from start to finish and acts as the key lynchpin for the different users (Traders / Treasury / Finance / CFO). Vincent will share the challenges and benefits of cash flow forecasting as well as his experiences. Finally, there will be a discussion on the main lessons learned, aimed at treasurers who are looking for a solution for an automated and accurate cash forecasting process.
Speakers: Vincent Almering, Financial Director Interfood B.V. – Nicolas Christiaen, CEO Cashforce. Moderator: Martijn Duijnstee, Manager Business Development Cashforce NL
Language: Dutch
If you are at the Treasury Fair, please take your time to visit their stand and mention treasuryXL.
We wish Cashforce success at the DACT Treasury Fair!!
If you want to find out more about Cashforce and their services and products please refer to their company profile on treasuryXL.
Tipco at the DACT Treasury Fair
| 15-11-2017 | treasuryXL | TIPCO Treasury Technology GmbH |
Company Profile
Treasury Reporting at the push of a button! TIPCO is the leading expert for treasury reporting in Germany, Switzerland and Austria. We develop customised solutions for our clients that are fast, flexible and easy to use. Our software TIP is a web-based application containing a diverse range of modules to support everyday reporting needs: Banking Account Administration, Financial Status, Liquidity Planning, Risk Management, Bank Fee Controlling, Compliance & Reporting and our Survey Tool.
With these modules, our clients can overcome problems created by heterogeneous system landscapes and find an easy way to communicate with their subsidiaries. Furthermore TIP is able to use existing data and avoids manual data input where it is not necessary. Huge amounts of data can be interpreted in seconds and reports are available by the push of a button. As a spin-off of the Austrian treasury consulting firm Schwabe, Ley & Greiner TIPCO unites treasury expertise with business intelligence competence.
Due to this unique combination, we are able to realise our projects with a holistic view and to the complete satisfaction of our clients.
If you are at the Treasury Fair, please take your time to visit their stand and mention treasuryXL.
This is Tipco’s own message via LinkedIn announcing their participation.
We wish Tipco success at the DACT Treasury Fair!!
If you want to find out more about TIPCO and their services and products please refer to their company profile on treasuryXL.
How does a FX spot transaction work?
| 14-11-2017 | treasuryXL |
Every day we enter into transactions in our own domestic market. Goods are priced in our own currency and we settle purchases in our own currency. Here in the Netherlands that means everything is priced and settled in Euro’s. It is a clear and concise system – of course we might argue about the price of goods, but that is another matter. Now consider what happens when we sell our goods to a counterparty domiciled in a different country – we shall assume from the United States. We would prefer to invoice in EUR as this is our domestic currency, whilst our counterparty would prefer to settle in USD. This makes sense as in both instances neither of us would be exposed to fluctuations in the exchange rate between the EUR and USD.
There are 3 basic choices to trade with a foreign based counterparty:
As we are keen to expand our export markets we agree to charging the buyer in USD, but what price should we charge in USD? By accepting payment in USD we are now assuming a foreign exchange risk as the value of the USD could fall in relationship to the EUR before we have sold the USD for EUR. If the fall was large it could take away all our profit from the original transaction, possibly even leading to a loss on the order.
We must therefore enter into a transaction to sell USD and to receive EUR to book our profit and to neutralize the FX risk. This leads us into the world of Foreign Exchange (FX) trading.
In FX trading quotations are always shown for a pair of currencies such as EUR/USD – but what does this mean?
If our order was for EUR 100.000,00 then the USD equivalent would be USD 115.950,00
In this example it is the USD price that fluctuates as it is the quoted currency, but this does not mean that fluctuations are only caused by changes in the value of USD. The value can also fluctuate because of changes in the value of EUR – even though this is the base currency.
Most major currency pairs are quoted to 4 decimal places – with the 3rd and 4th places being called “pips”. Pips are the expression traders use to describe their profit or their market spread.
If we traded EUR 1 million into USD, we would have an equivalent of USD 1.159.500,00
The value of 1 “pip” would be USD 100,00
When we approach a bank for a quotation in spot EUR/USD, the bank quotes a 2-way price such as 1.1592/97
The lower price – 1.1592 – represents the bank’s bid price. This is the price at which the bank buys EUR and sells USD.
The higher price – 1.1597 – represents the bank’s offer price. This is the price that at which the bank sells EUR and buys USD.
If the bank quoted this price into the market and one clients hit the bid at 1.1592 and another took the offer at 1.1597, both in EUR 1 million, then the bank would book a profit of USD 500,00 – or a profit of 5 pips on EUR 1 million.
FX is one of the largest markets in the world – daily turnover exceeds USD 5 trillion per day. That means 5 followed by 12 zeros – every working day.
With such a large daily turnover, prices are constantly changing. The market consists of price makers (who make the prices), price takers (who take the prices), intermediaries like brokers who assist the market by transmitting the prices and placing orders, and clients who place orders at specific levels. Prices are only valid for a few seconds before they change either because the market has traded on the quoted price or a new order replaces the existing price.
When you trade on the quoted price then you have entered into a binding contract with the counterparty. Settlement is normally 2 working days after the trade date. If you sell USD then you must ensure your counterparty receives the agreed USD amount on their account in 2 working days, and you receive the agreed EUR amount on your account in 2 working days.
Trade settlement is very important and means that you must have a complete operational procedure in placing to effect settlement, establish positions, agree counterparties, have trading limits etc.
Traditionally spot FX trades were done with banks. Now trades can also be transacted via electronic exchanges, electronic brokers etc. It is always important to know who your counterparty is – it could be that your internal operational control prohibits you from trading with specific counterparties.
Most major currencies can be traded against each other without restrictions such as exchange control. Therefore, currency pairings can be found everywhere such as USD/JPY and EUR/GBP and ZAR/CHF.
Spot FX transactions are not traded on listed exchanges; these trades occur “over the counter” with a clearly identifiable counterparty.
Lionel Pavey
Cash Management and Treasury Specialist