A roundup of topics International Treasurer is investigating.
The march toward doing more with less in the post-recession era (or the current possible double-dip post post-recession era) continues unabated. With that in mind, International Treasurer is looking into how treasuries can leverage technology to ensure that payment data is clean in order to avoid bounced payments, unnecessary fees and other inefficiencies along the bulk payment management continuum.
Hedging is also top of mind for many members of The NeuGroup universes. One particular area is delta replication strategies, which we began to discuss in the May issue of IT. This time we investigate how the approach eliminates the need for upfront premiums. Effective as the strategy is, however, it is not risk free and therefore not for everyone. And speaking of hedging, risk managers will also need to digest hedge accounting changes proposed in the just-released financial instruments Exposure Draft (and hedge accounting is the least of it) along with the steady realization of more and more primary and secondary impacts from regulatory change on the derivatives marketplace.
Elsewhere, there’s a debate among members about whether FX managers should operate under one all encompassing financial derivatives policy or under numerous separate policies (i.e. one FX policy, one interest rate management policy, one equity derivatives policy); also, whether companies that have an FX hedging operation in the US setup for 24 hour per day multibank electronic FX trading.