NeuGroup FX agendas zero in on risk assessment, risk management philosophy and hedge program design.
The two NeuGroups for MNC FX managers recently set the agendas for their upcoming meetings in September in New York and San Diego, respectively.
FX Managers’ Peer Group will meet in New York City on September 9-10, sponsored by returning sponsors Reval (also hosting) and Thomson Reuters. The anchor session, led by a couple of members who also designed survey questions to inform the discussions, will explore the corporate risk management philosophy and objectives, as well as how they drive what is hedged (profits, cash flows, balance sheet, etc.) and what methodology and instruments are used. It will also look at how these concepts, decisions and results are communicated externally and internally. Another session will review a member company’s hedge program “from soup to nuts,” including the rationale, implementation and benefits of a substantial business redesign which also reduced hedge requirements by up to half. China hedging and treasury work stations and analytics tools are also on the agenda.
FX Managers’ Peer Group 2 will be hosted by a San Diego-based member on September 15-16 and sponsored by Deutsche Bank, a long-time peer-group supporter. This event will see an juxtaposition of Deutsche Bank’s risk assessment methodology and hedge program design with a couple of member “soup to nuts” reviews, an opportunity to benchmark member programs to the bank’s broader universe of clients. In addition, new regulations putting burdens on banks’ capital turn the light on bank relationship management and both bank and customer need to have an honest look at whether needs are met at a reasonable price; the FXMPG2 will provide input on a fellow member’s efforts to design a share-of-wallet calculation to aid in spreading business in an equitable and fair manner to partner banks. A further session will look at emerging markets challenges, with a focus on India and China.
Both meetings will also have a rules and regs update, including members’ compliance progress and a look at what new regulations might come in jurisdictions beyond the US (Dodd-Frank) and Europe (EMIR).
A few membership seats are still open in the FXMPG and FXMPG2. Please go to neugroup.com to inquire about membership.