Cash & Treasury Market Profiles

The major impact of new European directives AIFMD and UCITS V has been, and will be, an increased need for market monitoring by custodian banks. Whilst the monitoring of market stability in markets in which clients are invested has been common place in the industry, it is now a formalised regulatory inevitability.

This is having a knock-on effect to banks’ cash activities, too. Whereas a system of seemingly innumerable vostro accounts used to be commonplace, the post financial crises world has necessitated a switch to a more centralised, nostro account platform. Not only does this help banks to better understand their global account structures, it helps them to increase cost efficiencies as well.

As well as the cost benefits associated with a centralised account management platform, having everything in one place also greatly helps banks to monitor their compliance obligations and associated risks within the markets in which they are holding accounts.

We developed our Cash & Treasury Toolkit in order to assist banks in centrally managing their accounts and we have also recently released our Cash & Treasury Market Profiles to provide banks with a full overview of the risks and compliance obligations that they are facing as a result of their global account structures.

“We are helping our clients to fully understand market practices and developments,” says Michael Hill, head of global cash sales at Thomas Murray Data Services. “Our structured reports provide a detailed overview of each market, with subsections focussing on individual areas such as local regulations and directives, tax rules, FX rules and entry and exit requirements.”

The profiles are currently active for 90 countries across six continents and work is underway with existing clients to prepare new profiles as they are required. As well as receiving the market profiles, clients also receive intraday newsflashes which provide news on events impacting that market. These can be white labelled to provide to a banks clients, helping banks to better inform their clients as well.

“We have been actively monitoring markets and their infrastructures for over 20 years now,” continues Hill. “The tsunami of post crises regulations and directives has meant that monitoring has never been more important than it is now. Our new products are driven by client demand – it is not always possible for a bank to monitor all of the markets in which it holds accounts, so outsourcing is a viable and constructive solution. This is a cost and time efficient way of monitoring obligation and risk.”

Thomas Murray Data Services’ security market profiles are utilised by numerous banks globally. The cash and treasury area of banking operations is rapidly evolving under a regulatory spotlight and market information from a cash perspective has become an acute need for many; not just for internal operations, but for underlying clients as well. 

Tags: Cash & Treasury ToolkitCash & Treasury ProfilesMarket monitoringmonitoringAIFMDUCITS VBanking