Streamline your multinational treasury through centralized trading centers
In the wake of Covid-19, efficiency, agility and optimization are critical objectives for today's
corporates. Centralized trading centers (CTCs) are an organizational structure that can help,
providing increased resiliency, flexibility and effectiveness through risk mitigation.
Understanding CTCs in the
post-Covid environment
In the aftermath of the global financial crisis, accelerated by a pandemic, businesses have learned to react quicker than ever to external shocks.
One way they have done this is by transforming their treasury through the creation of centralized trading centers—an organizational structure that combines both physical and financial value chains into one central location. This brings a reduction in the cost of goods and an improved client and supplier relationship. And that’s just the beginning.
READ THE REPORTOur new report, entitled "Understanding centralized trading centers in the post-Covid environment"—co-authored by J.P. Morgan and KPMG—explores how and why multinational corporations are establishing CTCs for their European operations. . . and the benefits they are reaping.
One way they have done this is by transforming their treasury through the creation of centralized trading centers—an organizational structure that combines both physical and financial value chains into one central location. This brings a reduction in the cost of goods and an improved client and supplier relationship. And that’s just the beginning.
Our new report, entitled "Understanding centralized trading centers in the post-Covid environment"—co-authored by J.P. Morgan and KPMG—explores how and why multinational corporations are establishing CTCs for their European operations. . . and the benefits they are reaping.
“The dynamic developments in the post-Covid global economy place demands on companies to make smart strategic decisions,
stay on top of the latest regulatory developments and continuously streamline operational activities. That’s where CTCs
can help.”
Altyn Sincheva
Payments Advisory Manager, J.P. Morgan
Empower your business with
benefits like these
Streamline trading
settlements
CTCs help improve managing operating subsidiaries’ commercial flows and their foreign currency transactions.
Execute payments for goods efficiently
Quickly reconcile incurring collections to outstanding invoices
As part of working capital management, CTCs can improve your days payable outstanding and days sales outstanding.
Standardize/extend supplier terms
Self-fund short positions with CTC surplus cash
Proactively manage
working capital
Improve FX
management
Working in several different currencies across an organization can make managing FX risk complex. CTCs can help.
Net FX exposures and reduce overall transaction cost
Cover short-term working capital positions with access to multiple currencies
Benefit from economies of scale when hedging your FX exposure from a central location
CTCs can help meet challenges with liquidity positions.
Enhance cash concentration
Optimize trapped cash
See exposure across entities
Strengthen
liquidity management
“To realize the benefits of a CTC structure, an appropriate and tax-efficient location needs to be considered, as well as
business requirements and priorities, regulatory framework, tech/digital readiness, governance, and access to talent and
partners.”
Tatjana Schaefer
Global Treasury Solutions Lead, KPMG
Explore how centralized trading centers can take your business to the next level
READ THE REPORTThen let’s talk about the future. Connect with your local J.P. Morgan representative today.
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2022 JPMorgan Chase & Co. Member FDIC. All rights reserved. The statements herein are confidential and proprietary and not intended to be legally binding. Not all products and services are available in all geographical areas. Visit jpmorgan.com/disclosures/payments for further disclosures and disclaimers related to this content.
J.P. Morgan does not make any representation or warranty, whether express or implied, in relation to the completeness, accuracy or reliability of such content nor as to the legal, regulatory, financial or tax implications of the matters referred to herein.
This guide does not constitute any form of endorsement by J.P. Morgan of the products and/or services provided by KPMG or any other form of cooperation between the parties, and is not intended to be advertisement or marketing materials of any products and/or services provided by J.P. Morgan.
This guide is of a general nature only, is accurate as of the time of compiling the content, is subject to change without notice and is not intended to provide, and should not be relied on for, accounting, legal or tax advice or investment recommendations. This guide is provided solely for general informational purposes, is not intended to be legally binding, does not attempt to be comprehensive and is not prepared to address any specific situations or needs of a recipient. Please consult your own independent tax, legal, accounting or investment advisor with respect to the risks and consequences of any matter contained herein.
This guide has NOT been prepared by J.P. Morgan's Research Department and therefore, has not been prepared in accordance with legal requirements to promote the independence of research. It is not a research report and is not intended as such.
IRS Circular 230 Disclosure: JP Morgan Chase & Co., its subsidiaries and affiliates, do not provide accounting, legal or tax advice. Accordingly, any discussion of U.S. or any other applicable jurisdictions with respect to tax matters included herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone not affiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
J.P. Morgan and KPMG expressly disclaim any and all liability to any person or entity, whether a purchaser of the guide or not, in respect of anything and of the consequences of anything done or omitted to be done by any such person or entity in reliance upon the content of the guide.
This guide may not be reproduced, redistributed or disseminated, in whole or in part, without the prior written consent of J.P. Morgan and KPMG. Any unauthorized use is strictly prohibited.
J.P. Morgan is the marketing name for the Wholesale Payments business of JPMorgan Chase Bank, N.A. and its subsidiaries and affiliates worldwide.
JPMorgan Chase Bank, N.A. Member FDIC. Deposits with JPMorgan Chase Bank, N.A., Toronto Branch, are not insured by the Canada Deposit Insurance Corporation.
JPMorgan Chase Bank, N.A., organized under the laws of U.S.A. with limited liability.
© 2022 JPMorgan Chase & Co. All Rights Reserved.
© 2022 KPMG Advisory (Hong Kong) Limited, a Hong Kong (SAR) limited liability company and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in Hong Kong (SAR).
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.
Date of last compilation for tax related information: September 2022
Date of last compilation for non-tax related information: September 2022
2022 JPMorgan Chase & Co. Member FDIC. All rights reserved. The statements herein are confidential and proprietary and not intended to be legally binding. Not all products and services are available in all geographical areas. Visit jpmorgan.com/disclosures/payments for further disclosures and disclaimers related to this content.
