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BofA Merrill and TRW Participate in Shanghai FTZ USD Pilot Programme

Bank of America Merrill Lynch Global Transaction Services (GTS) is participating in the Shanghai Free Trade Zone (FTZ) USD cash management pilot programme, with US-based TRW Automotive (TRW) mandating the bank for a treasury management solution. 
BAML and TRW entered into a Foreign Currency Cross-Border Cash Management Services agreement to facilitate the implementation of USD cross-border sweeping structures.

As a participant in the Shanghai FTZ USD cross-border sweeping pilot programme, BAML can help address the working capital requirements of companies in China in need of USD payments and collections centralisation and netting arrangements. Regulations also stipulate that companies that participate in the programme must be profitable, demonstrate a sound internal control procedure and accounting system, and have had zero FX violation records in the past three years.

For TRW, BAML will provide a tailored cross-border USD cash management solution that allows two-way sweeping of surplus funds between the header account in the FTZ and other entities globally and streamlined processes for settlement and FX. The solution also provides TRW payments and collection centralisation advantages to improve efficiency and save on costs.

Benefits to TRW include enhanced funding management efficiency by using onshore surplus cash outside China, improved FX exposures onshore and offshore and a reduction in treasury processing costs. “The Shanghai FTZ opens up broad opportunities for TRW to further maximise its working capital management and risk management. The new platform will provide synergies for TRW regionally and globally,” says Jane Hua, Asia-Pacific treasurer for TRW.

SGX Adds Marigold as Hong Kong Member

Singapore Exchange (SGX) has accepted Marigold International Securities to its derivatives market as a trading member, bringing the total number of members on the platform to 47.

Chew Sutat, head of sales and clients at SGX, says: “In recent months, we have seen more brokers from Greater China joining SGX and we expect more to become part of our community as we add more China-related products, including the A50 options and RMB FX futures.”

The derivatives market also has 27 clearing members, in addition to 11 clearing members for the clearing of OTC-traded financial derivatives on SGX AsiaClear.

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