The sponsor of the first NeuGroup meeting of 2017, Société Générale, is predicting higher FX volatility this year, including higher intra-day volatility. This heightens the importance of improving FX trading and execution practices, which was a highly rated topic for members of the FX Managers’ Peer Group (FXMPG), who convene in New York on March 7-8.
With a new US president and administration in place, companies are attempting to understand the new political and economic environment and its impact on markets. In the case of rising interest rates, what should treasury do to make sure the hedge program continues to meet its objectives? And is this the right time to consider net investment hedging? Société Générale’s experts will weigh in.
Continuing discussion of challenges faced in 2016, the group will compare approaches for determining the principal objectives for the hedge program and their internal hierarchy.
Also on the agenda:
• New Hedge Accounting Exposure Draft: In September, 2016, the FASB released an exposure draft on hedge accounting with the aim of making “targeted improvements to the hedge accounting model based on the feedback received from preparers, auditors, users and other stakeholders.” Key goals are to make hedge accounting easier to achieve and account for, and reduce the risk of restatement. An expert from Bloomberg will share his analysis of the exposure draft and recent developments.
• The Options vs. Forwards Decision: A perpetually high-rated topic for many, this session will examine the decision parameters and influencing factors for members when determining which instrument best serves the hedge objective, generally or at any given time.
• Lunch with Table Topics: Each table will have a topic, selected from items on the topic poll that did not rate high enough for members to make the agenda with a session of their own but that were still ranked highly by several members. For example: counterparty exposure management; quantifying and mitigating tail risk; effective FX training; bank scorecarding.
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