International Treasurer®Practical Intelligence for Treasury Innovation

Technology Update: Sorting Out S&P’s New Risk Evaluation Tool

S&P’s latest risk pricing tool looks to put a new spin on collected data.

Recently S&P launched a reconfigured analytical tool on its Global Credit Portal to help investors in corporate bonds determine if they are being adequately compensated for the risk of the bond—i.e., does it yield enough. Using a “Risk-to-Price” scoring methodology, the tool allows users to rank securities on a risk basis (both market and credit risk) relative to one another and bucketing them into one of four quadrants.  Bonds falling in Quartile 1 are projected to offer the best risk-adjusted yield and those in Quartile 4, the worst.

Technology Update: ISDA Releases New Version of FpML

FpML Version 5.0 to help with standardization and automation of derivatives processing and reporting pre- and post-trade.

XML standardization may eventually automate and integrate financial information exchange across all markets front-to-back. ISDA continues to move OTC derivatives markets in this direction with the release of Version 5.0 of its Financial products Markup Language (FpML). The implications for treasurers . . .

Technology Update: What Asset Managers Can Teach Treasurers About Collateral Management Systems

Corporate treasurers will be playing catch-up to asset managers’ collateral management practices.

When it comes to navigating the emerging landscape of collateral management for derivatives, post Dodd-Frank, corporate treasurers will be following to some extent in the buy-side footsteps of asset managers. Looking to them for what’s ahead in implementing collateral management systems can help guide technology decisions—including those of third-party providers who may support post-trade processing. 

Technology Update: Is IT2 Offering Account Reporting or EBAM?

Digging into the eBAM functionality claims of TMS vendors.

Is it lunch or just a shiny fishing lure? The following statement in a recent press release from IT2 caught our eye: “The Feature Pack offers a rich set of new integral elements for the IT2 treasury management system - including the first internally integrated bank account administration solution, with full eBAM facilities - offered within a treasury management system.”

Technology Update: Thinking About Systems to Interface with Derivatives Clearing Platforms

More end-users should focus on the hows of connectivity to CCPs.

The relevant legislation isn’t yet signed but still it’s never too early—and perhaps already too late—to consider the systems impacts of OTC derivatives reform.

Technology Update: Banks Easing Systems Implementation

Eliminating systems-change headaches as a roadblock for new business.

With certain bank counterparty concerns reemerging, efforts by banks to ease customer switch-over the last 18 months may pay off in new customers. As many treasury managers know, a major roadblock to switching banks is the prospect of migrating to their systems. “It’s enough of a headache, that you want to stay with the bank you have,” one treasury manager noted at a recent NeuGroup peer meeting.

Technology Update: FX Managers Mull FiREapps Pros and Cons

As the euro wobbles and other currencies fluctuate, managers compare notes on FiREapps.

With the euro tilting toward collapse, now is a good time to benchmark with peers on what system best meets this FX challenge (what challenge?). This is critically important because one of the other big challenges, aside from managing one’s FX exposures, is managing the slew of information from eager treasury management systems vendors promising the world.

A Simple Approach to Enterprise Risk

It’s often true in these high-tech times that people over-equip for most tasks. And while enterprise risk management is a ripe area for a surfeit of technological firepower, many companies take a more pragmatic approach: they manage ERM with Excel.

City Financials Goes to Wall Street

Continuing in its strategy to consolidate and create a dominant position for itself in the treasury management system market, Wall Street Systems announced the purchase of City Financials on June 2. “City Financials is a great fit for Wall Street,” noted Larry Ng, managing director for corporate development at Wall Street Systems. “We now have a full range of the best treasury solutions and services in the marketplace.”

Technology Update: The Cloud is More Than Just a Puff

While many pooh-pooh cloud computing, for treasury it will be cost-saving manna.

No matter what people think of “the cloud,” it is growing and most likely coming to an application near you. Accenture, in a recent report, called cloud computing “the fundamental re-creation of the traditional enterprise operating model,” offering companies agility and savings in both time and money.

Technology Update: City Financials Goes to Wall Street

Wall Street Systems beefs up its corporate treasury offerings with new acquisition.

Continuing in its strategy to consolidate and create a dominate position for itself in the treasury management system market, Wall Street Systems announced the purchase of City Financials today. "City Financials is a great fit for Wallstreet,” noted Larry Ng, managing director for corporate development at Wall Street Systems. “We now have a full range of the best treasury solutions and services in the marketplace.” Here are a few highlights from the deal:

Technology Update: The Numbers Game

Accuity manages all bank routing numbers but can also save companies money by cleaning payment data.

Global transactions are a swirl of numbers and data bouncing between banks and companies and vendors. And like the definitions of “swirl” – that is, movement that is curving, twisting, dizzy or giddy and confusing – these numbers can become corrupt.

Technology Update: A Simple Approach to Risk

Despite the bells and whistles offered by many enterprise risk software programs, companies still rely on Excel spreadsheets.

It’s often true in these high-tech times that people over-equip for most tasks. And while enterprise risk management seems is a ripe area for a surfeit of firepower, many companies take a more pragmatic approach: they manage ERM with Excel.

Technology Update: Reval Puts FXpress Purchase to Work

The derivatives valuation company includes FXpress functionality in its latest release.

It’s in there. More than eight months after its purchase of FXpress, derivative risk management and hedge accounting services provider Reval has released a new module that includes FXpress functionality.

Technology Update: Open Field for Derivatives Valuation and Exposure Forecasting Systems

Demand is rising but there are no clear winners in these areas, unlike the lock by SAP and Oracle on ERP.

The race for pre-eminence in derivatives valuation and exposure forecasting systems is still too early to call. An increasing demand for sophisticated solutions in these markets caused by the crisis and treasury’s overall emphasis on getting its own independent analytics has increased competition, but not narrowed the field as much as in other areas. That’s according to results of a recent survey of about 35 companies in The NeuGroup’s FX managers’ peer groups. And it is in sharp contrast to the world of ERP, where SAP and Oracle are the clear leaders.

Technology Update: Wall Street Systems Bets on eBAM

The firm bets on the future of electronic bank account management with Speranza purchase.

Wall Street Systems announced that it will acquire the assets of Speranza, a provider of a web-based platform for electronic bank account management or eBAM.

Technology Update: More Tech Spending Can Pit Implementers Against Users

Those implementing ERP, treasury or GRC systems often have different goals than those who actually use the systems.

If technology spending takes off this year as some surveys indicate, treasury will increasingly face an age-old problem. Big systems projects often put those integrating the technologies on a collision course with those who ultimately have to use it

Technology Update: Is TCO All That’s Keeping Treasury from Embracing SaaS?

Vendors would love to change their revenue models, and treasurers may be willing if the price is right.

Paper or plastic? Hosted or Installed? The inclination of most corporate IT teams and hence most treasurers has been to favor a treasury management system installed on the firm’s own servers. However, that mindset is slowly shifting, starting with treasurers who see the installation and support equation differently than IT, and who are getting past some of the security and data concerns.

Treasury Management Systems: A Chooser’s Guide

By Bryan Richardson

Here are a few tips from recent implementers that treasurers considering new TMS solutions should consider.

There are three big trends in the treasury systems space right now. Vendors’ numbers are shrinking. They are improving and expanding their capabilities. And they are growing down-market. These are the drivers behind the active business of treasury management system (TMS) implementations, even among large companies that have used a TMS for years.

eBAM Ushers in 21st Century Bank Management

By Bryan Richardson

The system makes strides via SWIFT, but some aspects of overseas accounts still remain atavistic irritants.

Sometimes highly anticipated technology solutions can seem to take forever to get to market. Such is the case with eBAM (Electronic Bank Account Management), the much hoped-for solution to the archaically manual and paper-intensive processes associated with opening, maintaining and closing bank accounts.