A look at what’s on International Treasurer’s radar screen this week.
Two topics of interest emerged from this week’s International Treasurer editorial meeting, one a recurring topic lately and the other fairly new. They are a further installment on the future of money market funds (MMFs) and how they will (likely?) suffer under new regulations, as well as the start of a series on the race to offer the best FX technology for corporates.
More on MMF. Over the last several weeks IT has followed the MMF imbroglio with a series of pieces on the subject, pro and con (see here, here and here). On Monday Institutional Cash Distributors (ICD) released a survey it conducted of 121 Corporate Treasury Professionals. According to ICD there is “strong Opposition to proposed additional SEC MMF regulatory action.” The survey revealed that more than 95 percent of the respondents stated that their company would reduce MMF investments, which would lead to a $714bn decrease in MMF investments. One of the most offensive proposals is the concept of a “floating” net asset value regime vs. the current, solid “buck.” We’ll continue to keep an eye on the issue and how will impact treasurers.
FX tech race. In the highly competitive world of foreign currency trading, global FX banks are on the attack, offering not only fully electronic transaction capability but also faster execution and sharper trading tools for professional dealers. Recently enhanced trading platforms and state-of-the-art features are aimed to give their clients information quicker, cleaner and more efficiency. And while many other asset classes are feeling the squeeze due to a changing regulatory environment and new capital requirements, FOREX is positioned to continue to grow. Here we will take a close look at Citi’s answer to the FX technology race, Citi Velocity FX Trading 2.0. Later on we’ll take a look at Deutsche Bank’s offering.