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LSEG has teamed up with Finmechanics, the Singapore headquartered provider of FM Converge, to help corporate treasuries reduce their liquidity and market risks, as well as their reliance on bulky, inefficient, spreadsheet-based processes.
The Corporate Treasury Risk (CTR) app enriches the LSEG Eikon and Workspace platforms with post-trade analytics such as cash & liquidity forecasts, profit/loss and risk reporting, OTC derivatives valuations, as well as hedge effectiveness, ISDA margining and Credit Value Adjustment (CVA). A cloud-based managed service, CTR relies on micro-services and technology developed by Finmechanics.
Andrew Hollins, Director of FX & Corporate Treasury Desktop at LSEG:
“The launch of the Corporate Treasury Risk app, in partnership with Finmechanics, ensures corporate treasuries can benefit from unrivalled real and near-time pricing and market data coverage along with Finmechanics’ exacting standards of data integrity and valuation accuracy across all asset classes and derivatives.
“Today’s corporate treasury teams face an unprecedented array of challenges, from the impacts of global geo-political turmoil including rising inflation, interest rate and FX market volatility. It’s therefore no wonder that we’re seeing the impacts of spreadsheet fatigue where continuous, manual input processes are leaving companies exposed to significant risk for business-critical tasks.”
Anindya Sarkar, Chief Executive Officer at Finmechanics:
“Corporate treasurers today operate against a backdrop of elevated risks, facing a range of market and operational challenges. CTR structures pricing and valuation environments with complete data integrity, provides fully auditable ways to identify and mitigate risks and brings confidence to an uncertain world.”
According to a 2019 ABR Treasury Review survey, 32% of CFOs and Treasurers relied on Excel as their primary treasury tool and just 10% said that their processes were fully digitised. In addition, a 2018 Aite Group survey showed over half (51%) of companies with revenue below US$250m used spreadsheets as their only treasury technology.
