Cash Visibility Remains Asian Treasurers’ Top Priority, IT2 Survey Confirms

Hong Kong - 28 June 2010

The company-wide visibility of cash and liquidity remains the number one priority for Asian treasurers. This was one of the key findings confirmed in a survey of delegates conducted at the recent joint IACCT / IT2 Best Practice Seminar, "Counterparty Risk Management - the Post-crisis Priorities." The seminar was held in Hong Kong, following IT2’s User Conference on 22nd June 2010.

The survey also found that:

• Asian treasurers see their role gaining in importance in the next 12 months.
• A vast majority of treasurers are optimistic about their business prospects in the next 12 months, despite the fact that they think that impact of the financial crisis - as well as that of the recession - are not over yet.
• Credit ratings remain the prevalent method for counterparty exposure management, but an increasing number of treasurers in the region are now also using more market-sensitive indicators such as equities prices and CDS spreads.

The seminar brought together treasurers from across Asia to discuss counterparty risk management. Delegates listened to contributions from some of the leading figures in the global treasury industry including Wolfgang Ratheiser, Corporate Treasurer - Asia - Pacific / Middle East, of Johnson Controls; Kevin Grant, CEO of IT2 Treasury Solutions; David Woo, General Manager - Corporate Treasury, Hysan Development Co. Ltd.; Peter Wong, Founding Chairman and President, IACCT.

The seminar’s focus on counterparty risk management was selected as it reflects one of the key areas identified as a treasury technology priority. In his concluding remarks, Mr. Wong commented: “Counterparty risk management is very likely to increase in importance for Asian treasurers in the near future. This is primarily because of the removal at the end of this year of the 100% full deposit protection arrangements put in place in 2008 by the governments of Hong Kong and Singapore. At the same time treasurers in the region are keeping a significantly higher level of cash post-crisis (e.g. one delegate has to manage over US$3bn cash for one company) and their priorities will certainly be focusing on market sensitive counterparty risk management.”

The IT2 User Conferences were held in Hong Kong and Singapore, on 22nd and 24th June respectively. At both of these events, Kevin Grant, CEO, delivered an IT2 corporate update, including an account of IT2’s strong commercial and financial performance in 2009. Pole Yu demonstrated IT2 version 7.0, highlighting IT2’s innovative integral solutions in two of the key areas for contemporary corporate treasury - financial risk management and cash visibility, including market-sensitive counterparty exposure management and electronic bank account administration (‘eBAM’). Both conferences included interactive sessions with the client delegates and IT2 management.

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