LSEG Teams with Finmechanics for Corporate Liquidity Solution
Posted by Colin Lambert. Last updated: June 26, 2023
LSEG has partnered with Singapore-based Finmechanics to help corporate treasuries reduce their liquidity and market risks, as well as their reliance on what the firm calls “bulky, inefficient, spreadsheet-based processes”.
The Corporate Treasury Risk (CTR) app has been launched on the LSEG Eikon and Workspace platforms with post-trade analytics such as cash and 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.
The firms cite a 2019 ABR Treasury Review survey which found that 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 $250m used spreadsheets as their only treasury technology.
“The launch of the Corporate Treasury Risk app, in partnership with Finmechanics, ensures corporate treasuries can benefit from real and near-time pricing and market data coverage along with Finmechanics’ standards of data integrity and valuation accuracy across all asset classes and derivatives,” says Andrew Hollins, director of FX and corporate treasury desktop at LSEG. “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, CEO of Finmechanics, adds, “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.”