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Risk Management
RiskMinds Webinar

A new time frontier in liquidity management

Posted by on 17 June 2024
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Upcoming RiskMinds Webinar on Wed 17 July 2024, 2pm BST / 9am ET, in collaboration with ActiveViam

Liquidity now finds itself between a rock and a hard place.

After a decade of quantitative easing, higher funding costs are now a rock that's here to stay. At the same time, technology is enabling reduced clearing timelines, as the US Stock Exchange Commission just illustrated with a T+1 Settlement process. On the positive side, margins and contingency buffers could be reduced theoretically. Yet, looking at the operations across geographies, the narrow overlap between time zones has become a hard place. Liquidity managers actually have a very short time window to operate. Down from T+2 initially, liquidity risk is now a matter of hours and minutes, with an incredible downside reputation-wise.

In this context, banks and fund managers worldwide are shifting gears. From a day-to-day governance check, assuming business-as-usual liquidity patterns, the emphasis is now on stress test exercises, contingency funding and recovery plans. Then, beyond scenarios & forecasts, when it comes to execution, treasurers are now seeking intraday clarity to navigate any actual situation. The benefit of the approach is the ability to secure a position of first mover, managing heat in the balance sheet before a fire sale on the market depletes collateral buffers and liquidity lifelines.

In this webinar, we will discuss how such liquidity management practice can be set up, and showcase how technology can support both strategic and operational decision making.

In collaboration with:

Can't join us live? Register now, and we'll send you the recording. 

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