Category

Talking Shop

Libor SOFRTalking Shop
February 4, 2021

Talking Shop: Seeking Help From TMS Vendors for the IBOR Transition

Member Question: “For anyone using Reval, I was wondering if you have used their IBOR Transition Assessment Service (ITAS) to help with the IBOR transition; and if so, what was your experience and approximate cost to use? Or, if anyone has received any kind of system implementation help from their TMS, just curious what they were able to help with, how effective, and costs?” What ION said. A spokesperson for ION, which owns Reval, told NeuGroup Insights in an email,…
Justin Jones
Love1
Cyber riskTalking Shop
January 28, 2021

Talking Shop: Which Area of Your Company Owns Fraud Risk and Training?

Member question 1: “Which area of your company ‘owns’ fraud risk? “I am interested in benchmarking ownership of fraud risk management, from policy setting to training and compliance monitoring. The scope of the fraud risk management is broad and includes data security, wire transfers, general theft, IP protection, etc.“Do you have one owner or is it co-owned by multiple departments (treasury, legal, auditing, etc.)?” Peer answer: “For us, it is owned by different groups based on the source of the fraud.…
Justin Jones
Love0
Cash & Working CapitalTalking Shop
January 26, 2021

Talking Shop: What is Your Cash Flow Coverage Target?

Member question: “Looking to take a quick pulse of the group. What is your cash flow coverage target for your current fiscal year period? Coverage can be defined as hedges placed vs. earnings exposure estimate or maximum hedge accounting capacity. “Our cash flow hedges are currently covering ~70% of our entire estimated earnings exposure (which closely aligns with our max hedge accounting capacity). This is up significantly from two years ago and is the culmination of a huge effort. Wanting…
Justin Jones
Love0
FXTalking Shop
January 21, 2021

Talking Shop: Net Investment Hedging Programs

Member question: “Anyone have a net investment hedging program? If so, how often are you rolling hedges? “What is your typical tenor? Are you hedging 100% or something less?” Peer answer: “We have done some opportunistic NIH hedging in JPY with FX forwards. We generally use our EUR capacity for debt issuances as well. Hedges have been in the two- to three-year range. “We will go up to 100% of capacity (we do not seek to push to the 125%…
Justin Jones
Love0
ComplianceFXTalking Shop
January 12, 2021

Talking Shop: Derivative Regulatory Compliance in Hedging Programs

Member question: “Our hedging programs have trading entities in multiple jurisdictions requiring continual monitoring of derivative regulatory compliance regulation. This is mostly handled internally, leveraging external counsel to advise on specific topics and questions. “How do others manage derivative regulatory compliance such as EMIR (European Market Infrastructure Regulation), FMIA (Financial Market Infrastructure Act) and others? Do you outsource, handle internally, hybrid solution or is it not applicable? Are there advisors that you would recommend?” Peer answer 1: “My company is…
Justin Jones
Love0
BankingTalking Shop
January 7, 2021

Talking Shop: Allowing Vendors to Directly Debit Bank Accounts

Member question: “What are your policies with respect to allowing vendors to direct debit your bank accounts for invoices due? “Our policy does not support vendor direct debit of our bank accounts. We do have an exception process for situations where vendor stoppage may have material impact (i.e. utilities for a manufacturing plant) or the vendor requires DD and there are no other alternatives (i.e. postal service).“I think part of our position is a historical perception that it is ‘bad’…
Justin Jones
Love0
Risk ManagementTalking Shop
January 5, 2021

Talking Shop: Remittance Verification Options for Treasury Payments

Member question: “How do others handle remittance instruction verification for treasury payments? Callback? Third-party service? Any ML or technology? “We are reviewing our verification process for remittance instructions for payments processed through treasury. Today, we require it to be on the bene’s letterhead, or bank letter, or imbedded in the contract, but have not implemented a callback. Who does the verification in your organization? Are you looking at any third-party services or ML-type models for additional controls?” Peer answer 1:…
Justin Jones
Love0
Risk ManagementTalking Shop
December 17, 2020

Talking Shop: Net Investment Hedging When There Is No Underlying Income

Member question: “Do you hedge net investments where there is no underlying operating income or cash flows? “Curious what philosophy or triggers companies have around net investment hedging—and if any companies do NIH where they don’t have an underlying positive cash flow or plans to liquidate? For example, a region where you may have a lot of fixed assets but no material underlying revenues.” Peer answer 1: “At our company, we have to raise debt regularly, so our NIH program is…
Justin Jones
Love0
BankingFXTalking Shop
December 15, 2020

Talking Shop: How Do You Restrict Trading for Currency and Bank Pairings?

Member question: “Question on restricting trading for certain currency/bank combinations: We have a few currencies that some banks have trouble settling with us (such as RUB). I want to avoid trading with these banks for those currencies. “Ideally, I could set up a rule in FXall to restrict specific bank/currency combinations. Does anyone have suggestions for doing this? Thanks!” Peer answer 1: “I believe that in FXall’s QuickTrade set-up, you can select/designate standard counterparty banks to populate for specific currencies…
Justin Jones
Love0
FXRisk ManagementTalking Shop
December 10, 2020

Talking Shop: What Did Your Transition Plan to Hedge Accounting Look Like?

Member question: “What did your transition plan to hedge accounting look like? “We are planning to adopt hedge accounting in the future. In terms of transitioning a book of hedges to designated hedges, we will close all existing undesignated hedges and put on a new book that is designated at inception.“We are curious how others have put on these new hedges. How long did you take to put on hedges? Did you trade all at once, daily, weekly, etc.? Also,…
Justin Jones
Love0

Connecting Every Finance Professional Who Wants To Share And Learn

Learn more

Knowledge Exchange

About

Need help?

©2024 - NeuGroup, Inc.

Privacy Policy