Cash & Liquidity Management
IT2’s Cash Management solution provides an extensive array of solutions including:

- Bank account balance and transaction reporting
- Reconciliation of reported and projected cash flows
- In-house banking
- Cash Sweeping and pooling
- Real-time cash positions, incorporating actual and forecast cash flows
- Interest calculation on internal and external accounts
- Multi-level group cash forecasting

Account statements can be loaded from any bank workstation or reporting service, or from SWIFT and can then be automatically reconciled and included in positions.

Money Market Dealing
IT2 provides the tools and instruments needed for short and medium-term working capital management. The system supports position management, funding and investment deals, including loans/deposits, money market instruments and money market funds.

Payments Processing/Settlements
Controlled Settlements Processing in IT2 can be automated and integrated with any settlement bank or payments system (including SWIFT and CHAPS) or banking workstation. Settlements can be controlled by means of a three-tier authorisation panel.

Compliance and Liquidity
IT2’s proprietary integrated reporting tools can generate all compliance reports. Process maps streamline the documentation of procedures and make it easy for users to follow process steps. Real-time limits monitor regulatory liquidity requirements as well as counterparty and dealer limits.

In-House Banking
IT2’s in-house bank can manage the settlement of inter-company transactions across internal (notional) accounts on a book entry basis, without the need for any external movement of funds. It can also provide account statements, which, as with statements from external banks, detail the transactions posted to these accounts.

Forecasting
As well as actual treasury and operational flows can incorporate forecast treasury and operational flows. Operational forecasts can be collected from other external systems using IT2’s Communications Server, or from the finance staff of subsidiaries using IT2 NET, IT2’s browser-based subsidiary communications module.

Mulitlateral Netting
Used in conjunction with an in-house banking model or on its own, multilateral netting can be used by the Treasury Centre to consolidate monthly, inter-company invoicing and FX and funding requirements into a single payment to or from each subsidiary. This can significantly reduce the number (and associated costs) of inter-company settlements routed via external banks.
IT2 NET, the browser-based communications module, allows remote subsidiary operations to submit their netting data directly to IT2 pending review and approval by the treasury and/or netting centre. This eliminates the need for treasury staff to collect, consolidate and process this data themselves.

FX Dealing and Foreign Exchange Management

Foreign Exchange Management
A treasury department's or treasurer's hedging policy can range from the simple covering of the organisation’s currency requirements on demand to the management of complex FX hedging strategies to cover budgeted and other forecast exposures. IT2 provides timely identification of foreign currency cash flows and exposures so that FX trades can be executed and monitored in accordance with hedging policy.

Continuous Linked Settlement
IT2 allows organisations to route their CLS-eligible settlements through their CLS member banks for final settlement at the CLS Bank. This is achieved by identifying FX trades with CLS and non-CLS counterparties and automatically applying the appropriate settlement method to them to maintain straight-through processing.

FX Dealing
Whether dealing to fund custody services, cover fund investments or make a profit, IT2 automatically generates cash flows, settlement details, confirmations and accounting journals for all the major FX instruments traded in the market, including spot, forwards, swaps, location swaps, and options (both vanilla and exotic). Bank bids are recorded at deal input for bidding analysis. Deal workbenches (IT2 deal reporting and management tool)can receive real-time FX rates and provide real-time performance information.

Currency Position Management
Integrated positions can include future cash flows for all treasury deals supported in IT2, as well as flow forecasts from other systems, deals with internal departments or desks, and account balances.

FX Performance & Benchmarking
All internal/external deals and exposures can be included in a single position analysis, enabling sophisticated reporting of open positions, and profit/loss on individual deals or a portfolio of deals. FX performance can be compared to a benchmark and against policy.

Long-term Finance and Investment Management

Finance & Funding
IT2 provides the flexibility required to handle the most complex bank loans, private placements and corporate bonds.
All instruments can be taken from external parties. They can also be provided to business units for inter-company lending, or to business sectors for inter-company, business sector or joint venture funding.

IT2 automatically generates cash flows, settlement details, confirmations and accounting journals for fixed, floating and index linked loans, commercial paper, certificates of deposit, bonds, gilts, repos, notes, and facility drawings. 

IT2 provides real-time position analysis, maturity gap, cost of funds analysis, return on investment analysis and rate-fixing diaries for internal and external deals, assets and liabilities. 

Lease Management
IT2 records and manages financial and operating leases, and incorporates the lease cash flows in your treasury positions.

Facility Management
Bank and inter-company facilities received or granted can be syndicated (allowing for tender panel usage monitoring), and be in the single or multi-currency. Terms and conditions can be recorded for future reference. IT2 also provides a real-time view on headroom and calculates any associated fees.

Asset & Liability Management
Finance from banks, treasury or capital markets can be reported on and analysed together with funding given to business sectors, joint ventures or investment vehicles. Liabilities from customer deposits can be modelled and analysed together with treasury investment portfolios.

Finance & Investment Performance
All finance and investments can be included in a single position analysis enabling sophisticated reporting of maturity gaps, cost of funds, return on investment, and asset & liability matching. Interest-rate sensitivity and scenarios can be assessed and compared against a benchmark.

Interest Rate Management
Interest-rate exposures can be measured under market and user defined scenarios. Interest income and expense risks can be managed according to policy, using vanilla swaps, basis swaps, currency swaps, swaptions, caps, floors, collars, FRA’s and futures, all of which benefit from full straight-through processing and risk management in IT2.

Investment Management
IT2 provides a treasury with the ability to manage a portfolio of investments either in its own name or on behalf of private clients. Investment can be in the form of cash on, money market deposits, fixed income securities, equities and mutual funds.

Capital Markets
IT2 supports the issuance and trading of corporate or asset-backed securities and investments in a wide range of capital market instruments. This also includes deal administration, position analysis, performance measurement and straight-through processing for settlement and accounting.

Equity Management
IT2 supports the issuance and trading of equities. This also includes deal administration, position analysis, performance measurement and straight-through processing for settlements and accounting.

Commodities & Futures
IT2 supports commodity as wells as commodity futures and financial futures trading. IT2 also provides real-time position analysis based on market prices, calculates margins and P/L, maintains margin accounts, manages fees, and provides diary reminders.

Trade Finance Administration
Letters of credit and guarantees issued and received can be registered under bank facilities, allowing utilisation to be monitored. Transactions received can be monitored under appropriate counterparty limits to manage overall exposure to banks and other external parties.

Limit Administration & Monitoring
The first step in managing any treasury risk is defining acceptable limits. IT2 can manage dealer, counterparty, issuer and settlement limits immediately informing dealers and controllers of available headroom and breaches on a trade-by-trade or counterparty basis.

Risk Management
IT2 provides real-time limits monitoring, mark-to-market measurement, scenario analysis, VaR, hedging instruments, work-flow controls and an audit trail for the complete management of FX, interest rate, counterparty and operational risks. IT2’s flexible, intuitive and integrated reporting capability facilitates the identification and management of risk.

Treasury Accounting
IT2 provides a complete treasury general ledger facility with the automatic generation of all journals for trial balance and profit & loss reporting in local and group currencies. Whilst this is intended as a sub-ledger that integrates with a corporate ledger. For some smaller organisations, it can deliver a corporate ledger solution.

The automatic generation of accounting entries for all the instruments supported by IT2 means that your treasury resources can be used more efficiently. No longer will your team spend a significant portion of each month closing the last month. With IT2, it can be done by one person in just a few hours.

Hedge Accounting FAS 133 & IAS39
IAs well as performing GAAP accounting for all supported deals, IT2 has extensive hedge accounting capabilities for the documentation, classification, effectiveness measurement, de-designation, disclosure, analysis and reporting of hedge relationships. IT2’s hedge accounting solution enables:

- The hedged item and the hedging instrument to be identified, and the hedging relationship between them formally documented.
- The documentation to clearly identify the hedged risk, the hedge type, and how the effectiveness of the hedge is to be assessed.
- Prospective and retrospective effectiveness to be assessed using critical terms and regression analysis methodologies.
- Accounting journals to be automatically created.

IT2’s Hedge Accounting module has been designed and refined in close consultation with both our clients and the “Top Five” accounting firms to meet the requirements of Federal Accounting Standards Board rule 133 (FAS 133) and International Accounting Standards Board rule 39 (IAS 39)

The use of ground-breaking Treasury Process Maps in IT2 brings a degree of clarity to the management and control of hedge accounting requirements, previously unseen in Treasury systems. These enable the Treasurer to maintain a high level overview whilst providing full drill-down capability to the underlying transaction detail.

IT2’s hedge accounting is reported by many hedge accounting experts as the most comprehensive and integrated hedge accounting solution available.

Subsidiary and Customer Communications
IT2 NET provides enhanced communication and information flow between the treasury and its subsidiaries and external customers. It is a secure web-based tool that provides for on demand treasury reporting and for the communication of:

- Deal requests/order management with treasury
- External deal capture
- Financial planning, including liquidity forecasting & budgets to treasury
- Multilateral netting invoices to the treasury netting centre
- Payment requests to treasury

Statutory Reporting
IT2 provides the data and reporting tools to efficiently produce Financial Services Authority reports including interalia, holdings by sector, holdings by rating, assets, balance of payments, flows statistics, cbm daily foreign exchange report.

Integrated Treasury Operations & Control
IT2 provides operational functionality for use in any treasury environment for:

- Controlled straight-through processing from deal entry, confirmation and settlement (via bank workstations, Edifact, BAI, SWIFT and other methods) through to accounting, risk management and management reporting.
- Treasury business process management with integrated activity diaries enhancing operations management and simplifying Sarbanes Oxley (SOX) documentation.
- Treasury reporting, that cover operations, risk management, control & compliance as well as management & analysis.
- Treasury integration with internal and external applications, including banking, accounting, market data, CRM, ERP and so on.

Back Office
IT2 provides for all supported instrument types full back-office facilities, including confirmations, settlement trade status reporting and GAAP accounting. Strong controls and reporting enables users to track all open and unfinished business ensuring any required front-office intervention will not remain open or unfinished overnight.

Reporting and Management Reporting
On-line enquiries in IT2 provide a real time view of all treasury information, including deal & liquidity positions, limits and profit & loss. Each on-line enquiry provides full transparency to the underlying data, allowing authorised users to drill down on a reported amount and identify the individual deals, cash flows or journals that contribute to that amount.

IT2’s proprietary easy-to-use reporting tools facilitate batch and ad-hoc reporting. On all data within IT2 and enabling data from other systems and departments to be easily merged

Integration

Banking Integration
IT2 integrates with EFT and account statements with bank workstations from Citibank (on-line and CTSI), Barclays and Lloyds TSB as well as many other banks and services such as FIDES.
Visit FIDES website for information on the FIDES Account Reporting System (ARS) which provides connectivity to 600 banks.

SWIFT Alliance
IT2 provides SWIFT integration for full members for cash settlement and account statements, FX and money market deal confirmations and bond settlements, through Member Administered Closed User Groups (MA-CUGs),

Corporate Ledgers
IT2 integrates with SAP, Sun, Peoplesoft and many other corporate ledgers, including Access Accounting, Albany Software, Agresso, Armstrong Consultants, CedarOpen Accounts, CODA, Epaccsys, Foundation Systems, HansaWorld, IFS, Inca Software, Insight, SC, Intellexis, Intentia (Movex), Lakeview, Lawson Software, Metaphorix, Microsoft Business Solutions (Navision), Oracle (incl. JD Edwards and Peoplesoft), Orchard Information Systems, Perceptive Software, Perogative, Version One, Qtier Software, Sapphire Systems, and Topaz Computer Systems.

Market Data
IT2 provides has file and real-time interfaces for FX rates, interest rates, issue prices, volatilities and credit ratings with Reuters, Bloomberg and many other sources.

IT2 Communications Server - Integration
Powerful yet quick-to-implement integration is vital in a modern treasury. IT2’s event-driven eProcessing can be extended across all technologies, from simple CSV files to XML data, fax, e-mail, and real-time middleware monitoring. Communication can be with other front or back-office systems, ERP, Corporate Ledger, SWIFT, dealing systems, data warehouses and market data. Many financial institutions augment their existing systems with IT2 to eliminate STP gaps.