A look at what services Deutsche Bank has to offer in Asia, shareholder activism, and a treasury management system were just a few of the topics discussed in this week’s International Treasurer editorial meeting.
DB’s Asia offerings.
IT will take a look at Deutsche Bank in Asia. The bank is seeing success in its attempts to offer clients the services needed in the region. DB boasts a single global IT infrastructure that standardizes what it offers even if clients are accessing it through a local partner bank. We’ll take a closer look at that structure, its supply-chain finance offerings, as well as the bank’s foray into under-banked ASEAN countries.
Shareholder activism.
News of activist-investor campaigns against cash-rich companies ubiquitous lately. But for any company nowadays, the risks of an investor attack are real and treasurers should be prepared. And while low-information activists may just cause trouble, others can provide useful advice on how to help your company. Does activism improve performance and governance of target firms? Does it focus the treasury mind when it comes to what to do with excess cash? M&A, dividends and share buybacks: what’s the right answer? By engaging effectively with an activist investor, companies might be able to turn a potential negative situation into a positive one.
Kyriba TMS.
Can a cloud-based system really deliver perfect vision? Kyriba thinks so. Its 100% cloud-based system advertises the ability to “achieve perfect visibility into treasury and risk,” and based on its growing popularity for a range of treasury operations, their success, if not perfection, is clear. Traditionally thought of as a cash and treasury operations solution, Kyriba is trying to expand its scope with added risk management and supply-chain finance capabilities, along with promoting treasury as a strategic partner.
The ISDA March 2013 Dodd-Frank protocol.
The deadline for compliance to the ISDA March 2013 Dodd-Frank Protocol is coming up in a few days. Compliance with the rules, which are related to clearing, portfolio reconciliation and swap trading relationship documentation, is July 1, 2013. Non-compliance by the deadline could result in swap dealers being unable or unwilling to enter into new swaps. Members of the NeuGroup universe are concerned about whether they will need to comply with all the schedules, specifically whether they should adopt Schedule 3 or Schedule 4. According to Marc Horwitz of DLA Piper, Schedule 3 is optional for corporate end-users. They can elect it “if they want to receive daily marks of each trade, and if elected, the corporate can dispute the valuation in a manner similar to how it disputes a valuation under the CSA.” Schedule 4, meanwhile, requires swap dealers “to agree in writing with their counterparties on the terms of portfolio reconciliation.” Mr. Horwitz said dealers “likely will require corporates to elect Schedule 4” to adhere to CFTC Regulation 23.502(b).