New risk management policies expected to emerge
Stockholm – 6 March 2014 – An Infiniti Research survey sponsored by TradeTech Consulting Scandinavia AB - a Virtusa, Swedish Subsidiary - reveals that corporate treasuries are rapidly gaining importance as they are increasingly being expected to play the role of internal advisors and contribute to the process of strategic planning.
2013 has proven to be yet another challenging year for treasurers as, not only they continued to face regulatory changes (many of which are anticipated to influence business processes and systems), but they also struggled to overcome economic challenges such as volatile global markets and a lacklustre economic outlook.
Based on insights from the survey, four key factors have been identified that indicate the growth in scope and influence of corporate treasuries:
1. Increasing adoption of Formal Risk Management Polices
2. Creation of Risk Management Boards
3. Increasing integration of Risk Management Functions into business operations
4. Increasing usage of Treasury Management benchmarks to evaluate performance
Other key findings of the survey:
Henrik Crone, Head of TradeTech EMIRIS, commented, "At TradeTech we deliver services to help corporate treasuries with their risk management and compliance. A very recent example is our newly launched software solution called EMIRIS designed to take the burden out of EMIR reporting. Under the European Markets Infrastructure Regulations (EMIR), derivatives trades must be reported to an approved trade repository from February 12 this year."
As a web-based SaaS solution, EMIRIS connects to any Treasury Management System (TMS), even if the treasury or financial department is using Excel for their derivatives. Furthermore, it has all the required functionality for reporting, maintenance, reconciliation, monitoring etc.
A whitepaper based on the study is available for download at: http://www.tradetechconsulting.se/wp-content/uploads/TTC-research-whitepaper-final-.pdf
About the Survey
A judgmental sampling survey was conducted in the Banking and Insurance industries in Nordic, Netherlands, the UK and other European countries. The survey, which has a confidence level of 95%, involved in-depth one on one interviews with senior financial executives. Their job titles include: Compliance Officers, Chief Financial Officers, Chief Executive Officers, Head of Administration, Chief Risk Officers, Economic Capital Modellers, Heads of Capital Management, Heads of Business Support, Heads of Treasury, Heads of Capital Markets, etc.
Under the European Markets Infrastructure Regulations (EMIR), derivatives trades after 12th February 2014 must be reported to an approved trade repository. The EMIR regulations apply to buyside and sellside firms of all sizes, or so-called financial counterparties (e.g. banks, investment banks and security dealers), including corporates, or so-called non-financial counterparties, even if they hold a single derivative-based instrument in their accounts. Getting transaction reporting wrong can be costly. According to the Swedish Financial Supervisory Authority (Finansinspektionen), the fine for non-compliance is up to a hefty €5M under the Swedish EMIR Act (2013:287).
About Infiniti Research
Infiniti Research Ltd is a global customized market intelligence firm with offices in the US, Canada, the UK, India and China. Founded in 2003, we have the experience in conducting complex research assignments and serving 120+ Global clients including 35 Fortune 500 companies. Our team of 200+ research analysts with specialization in different sectors, conducts research on more than 50 countries (including all OECD and extended BRIC countries), and in more than 20 languages (including French, German, Mandarin, Japanese, Korean, Spanish, Portuguese and Hindi). We conduct 400+ in-depth research assignments every year. www.infiniti-research.com
About TradeTech Consulting - A Virtusa Company
TradeTech Consulting delivers outsourcing and consulting to the financial services sector. Established in 1998, TradeTech tailors offerings specific to corporate treasury, banks, financial institutions, government and central banks. TradeTech was acquired by Virtusa Corporation (NASDAQ GS: VRTU) in January 2014, and is now a wholly owned subsidiary of this global organization. For more information visit www.tradetechconsulting.com and www.Virtusa.com