Trade Finance News, Updates & Trend Across the Globe

Are Logistic Companies Waking up to Trade Finance?

The logistics industry has a complex structure of players that enable products sourced globally to get to the last mile destination. There are freight forwarders, Regional and Global Ocean Carriers, air freight, Non Vessel owning 3PLs and others that provide a range of services.

Most logistic providers have not progressed with supply chain finance solutions. Until recently, UPS was the only game in town. Few people know that UPS bought a bank back in 2001, First International Bancorp, and got into the factoring business. Today, they focus on three finance solutions:

Source: http://spendmatters.com/tfmatters/logistic-companies-waking-trade-finance/

Hong Kong, Singapore to Collaborate on DLT Trade Finance Platform

Hong Kong’s banking regulator and de facto central bank has announced a new collaboration with Singapore aimed to digitize trade finance using distributed ledger technology (DLT).

Making the announcement today at a fintech event, the CEO of the Hong Kong Monetary Authority (HKMA), Norman Chan Tak-lam, said the joint project with the Monetary Authority of Singapore (MAS) will focus on a DLT proof-of-concept called the Hong Kong Trade Finance Platform (HKTFP).

Already having seen involvement from seven Hong Kong-based banks, the project is designed to digitize trade documents and reduce risk and fraud in the industry. Ultimately, the authorities plan the creation of a cross-border infrastructure that would serve as a bridge between HKTFP and a similar trade platform in Singapore.

Source: https://www.coindesk.com/hong-kong-singapore-to-collaborate-on-dlt-trade-finance-platform/

Corda for Cargo: R3 Inks Another Trade Finance Partnership

In its latest effort to use distributed ledgers to modernize the paper-intensive business of trade finance, R3 has agreed to work with Bolero on an electronic bill of lading service.

Announced Monday, the partnership follows R3’s pilot with Japanese financial giant Mizuho to digitize letters of credit and bills of lading, and a trade finance app developed by 11 international banks using the consortium’s Corda platform.
R3’s newest partner, the U.K.-based Bolero, already offers an electronic bill of lading and title registry, with a common legal framework, but the reach of that service will be extended by developing an oracle on Corda, the companies said.
Part of R3’s broader mission is to “help connect digital islands,” Todd McDonald, a co-founder and head of partnerships at R3, told CoinDesk.

Source: https://www.coindesk.com/corda-cargo-r3-inks-another-trade-finance-partnership/

Global Trade Finance Market Research Report 2017-2022

Bharat Book Bureau announces the addition of the report “Global Trade Finance Market Research Report 2017-2022 by Players, Regions, Product Types & Applications [https://www.bharatbook.com/business-market-research-reports-952808/global-trade-finance-players-regions-product-types-applications.html ] ” to its offering.

Summary

The global Trade Finance market is valued at XX million USD in 2016 and is expected to reach XX million USD by the end of 2022, growing at a CAGR of XX% between 2016 and 2022. This report offers an overview of the market trends, drivers, and barriers with respect to the Trade Finance market. It also provides a detailed overview of the market of different regions across United States, Europe, China, Japan, India, Southeast Asia and Others. The report categorizes Trade Finance market by By Activity, By Scope, and application. Detailed analysis of key players, along with key growth strategies adopted by them is also covered in this report on Trade Finance market is valued at XX million USD in 2016 and is expected to reach XX million USD by the end of 2022, growing at a CAGR of XX% between 2016 and 2022.

Source: https://www.marketwatch.com/story/global-trade-finance-market-research-report-2017-2022-2017-10-25-102033131

BNY Mellon becomes partner bank in ADB’s Trade Finance Program

BNY Mellon has become a partner bank in the Asian Development Bank’s (ADB) Trade Finance Program (TFP).

The agreement, made official at a signing ceremony during Sibos, covers a range of trade finance instruments, including loans and guarantees, and will allow BNY Mellon to continue its strong growth in Asian trade services by facilitating support to a wider range of customers, including small- and medium-sized enterprises (SMEs).

Backed by the ADB’s AAA credit rating, the TFP enables companies throughout Asia to engage in import and export activities through the provision of loans and guarantees by ADB’s partner banks. Since 2009, the program has supported over 9,200 SMEs across developing Asia – totaling over 13,000 transactions valued at over $25.5 billion. Sectors range from commodities and capital goods, to medical supplies and consumer goods.

Source: https://www.fx-mm.com/news/70907/bny-mellon-becomes-partner-bank-tfp/

Africa drives Access Bank’s trade finance growth

The Access Bank UK Limited, a wholly-owned subsidiary of Access Bank Plc, a Nigerian Stock Exchange-listed company, has witnessed strong growth in its trade finance business linking the Middle East region with Nigeria and other sub-Saharan markets, Jamie Simmonds, CEO of The Access Bank UK told Gulf News in an interview.

The bank which began its Dubai operations from the Dubai International Financial Centre (DIFC) in 2015 said the DIFC office has become a regional business hub for the bank, attracting trade finance deals from across the Middle East and from Asia.

The bank works on a five-year plan and matches the liability side of the balance sheet with planned asset growth. In addition to the capital raised from its parent, the liability side is significantly supported by customer balances, Simmonds said.
Source: http://gulfnews.com/business/sectors/banking/africa-drives-access-bank-s-trade-finance-growth-1.2106124

Trade finance needed to foster intra-African trade

East and southern Africa leads in intra-African trade with the highest share of between 18 and 19 percent, which reflects Common Market for Eastern and Southern Africa (COMESA) and Southern African Development Community’s (SADC) effective agenda in consolidating trade and development in Africa.
North Africa and Central Africa have the lowest share of intra-African trade of 5.3 and 2.1 percent, respectively.

This information is contained in the Trade Finance in Africa Survey Report by the African Development Bank Group published in September 2017, which tracks the changes that have occurred in the trade finance market in Africa during the period 2013-2014.

Source: https://southernafrican.news/2017/10/27/trade-finance-needed-to-foster-intra-african-trade/

De-risking in trade finance: time to act

As financial authorities express concern about de-risking in correspondent banking, a similar phenomenon is emerging in trade finance, driven by the high costs of KYC compliance.

There is a danger that some banks in some regions, such as Africa, will have difficulty connecting to the trade finance world. Banks need to collaborate to help corporate clients to connect with their customers and address the still unsatisfied demand for international trade services.

De-risking is a hot topic in the cash clearing universe as some correspondent banks withdraw from certain countries, currencies, or products to control costs and risk. At the same time, de-risking is becoming a phenomenon in the trade universe for the same reasons.

Banks’ correspondent relationships are conducted via Swift’s global network, which numbers 11,000 banks in 200 countries. Via Relationship Management Application (RMA) keys, banks can connect with each other. The RMA is a Swift-mandated filter that enables financial institutions to define which counterparties can send them FIN messages. Any unwanted traffic is blocked at the sender level, reducing the operational risks associated with handling unwanted messages and providing a first line of defence against fraud. RMA Plus, a more granular version of RMA, goes one step further by letting institutions specify which message type(s) they want to receive from, and send to, each of their counterparties.

Source: http://www.bankingtech.com/1034352/de-risking-in-trade-finance-time-to-act/

Hopes raised as first African bank joins trade finance fintech platform

South Africa’s Standard Bank has become the first African bank to join CCRManager’s digital trade finance platform, a global project to ease trade and supply chain finance distribution.

CCRManager (CCRM), a fintech firm backed by the Monetary Authority of Singapore, launched its platform earlier in the year, as previously reported by GTR.

Thirteen banks across 11 countries are already members of the platform, transacting live deals. These include Bank of China, DBS Bank, ICICI Bank, Swiss Re Corporate Solutions, UniCredit, BBVA, Yes Bank and now Standard Bank. The remaining banks are based in Japan, Hong Kong, Middle East and UK, but have not been named.

Source: https://www.gtreview.com/news/africa/hopes-raised-as-first-african-bank-joins-trade-finance-fintech-platform/

Sponsored roundtable: Assessing India’s trade finance scene

GTR: The current government of India has been taking steps to make trading and transacting simpler and easier. How do you assess the progress that’s been made on that front?

Somasekhar: In India, we have a robust foreign trade policy compared to three decades earlier. When we see the foreign trade policy, many of the items are becoming freely importable. The documentation part of the foreign trade policy has gradually been simplified over a period of time. Previously, we had around 21 to 25 documents that a customer had to submit to the authorities. Today, it has been reduced to seven or eight documents. There has been simplification of documents over the past several years in this regard.

One issue is with physical documents. Although many of the banks have completed their digitalisation process, the synchrony with customs was not available and is now being looked into. The customer gives the documents to the bank. In some cases, the bank has an interface with the customer systems, but banks in turn do not have an interface with the customs offices. This maintains the need for the physical documents to ensure that we adhere to the guidelines of customs or the regulator.

Verma: The Export Data Processing and Monitoring System (EDPMS) and Import Data Processing and Monitoring System (IDPMS) are great developments on that front. What did not happen in the last five decades has happened in the last two and a half years. It is a great change that I see. While there are a few teething issues, we believe that it is a great step in the right direction.

Somasekhar: We agree it is a positive step. Compared to 20 or 30 years back when banks were generally dealing in physical documents today, we are able to at least see them in the system once the data is uploaded by customs. We can be sure that goods have come into the country or gone out of the country. But still, there are some bottlenecks. For example, when goods are delivered in manual ports, there is no entry in the EDPMS or the IDPMS immediately but only at a later date.

Source: https://www.gtreview.com/news/asia/sponsored-roundtable-assessing-indias-trade-finance-scene/

BSE FMCG Index Technical Anaysis

The FMCG index has been in wave 5 long term since 2009 and it has been an extended move. It did not stop at 5=1 [circle], it did not stop at the upper end of the rising channel. The momentum has been slowing down since it hit the upper line. Two possible outcomes exist. First and primary that we are in wave IV of 5 up that itself fits a channel. A move to the lower end of the channel would complete wave IV and then wave V up would unfold to one final new high. The other alternate is to think that 2013-2017 is an expanding pattern. The time taken makes it look like this is the less likely pattern but would be a valid alternate if the rising channel for wave 5 up breaks down

US Dollar V/s Leading Currencies – Technical Analysis

USDAUD

USDAUD completed a wave 2 correction and wave 3 up should have startded. 3=1 points to 1.33 next with support near 1.26

USDCAD

USDCAD – is due to start wave iii up with iii=i pointint to 1.30, support at 1.25

USDINR

The monthly candles for USDINR show a engulfing bull pattern. The close for the month was above the previous bear pattern that had a high of 65. So 65 is an important pivot. The next move up should be seeing us up to 67 or the previous high at 68.87

USDZAR

USDZAR – or the South African Rand, wave ii pullback appears complete and wave iii up should be next. iii=i is at 14.40

Bitcoin – Where Is It Heading Technically?

BITCOIN

Bitcoin has everyone’s fascination. After each 5 wave rally an EW analyst would expect a correction, and if it is 3 waves like the last one in Sept. Now another 5 wave rise is in progress and must add at least 3 more waves up as shown to complete a 5 wave sequence before we can say this move is complete. I do believe however as discussed in the Podcast that Bitcoin is a manifestation of the liquidity bubble and therefore its final top may coincide with that of equities at some point with a lag.

Gold, Silver and Copper Technical Analysis

Silver MCX

Silver is in wave c down and c=a can point to 37608. The recent high for wave b is at 40632. Wave c may also extend lower to the 2 year trendline support that is closer to 36026. Wave c will be a 5 wave decline so till 5 waves down do not complete the move is not complete.

Copper MCX

Copper Mcx started minor wave v of 5 as a final push higher to a new high above the 466 high. Hard to put a number on how far it should go. But wave v of 5 should be final move for the last metal in the sector making a 5 wave advance.

GOLD Daily MCX

Gold was down and managed to push the daily momentum into sell mode. Gold Mcx closed very near the 40dema at 29571, below which gold should head to the lower Bollinger band at 29294. On weekly charts the 20/40 day averages are near 29090 as the next important support level. The weekly momentum also crossed over to the sell side as gold closed down for the week.

US 10 Years T Notes Technical Analysis

US 10 Years T Notes

The only reason I can think that drove fear into Indian markets would be the rising dollar accompanied by rising bond yields. The US 10 year treasury notes on Friday saw a bid dip closer to the wave 1 low. If broken it would confirm start of wave 3 up for bond yields. The 10 year notes should yields near 2.64% in wave 3.

Commodity Technical Analysis Report

SILVER MCX

Silver prices started to bounce back along with gold in wave b of a decline. Wave b should be a retracement of the fall that can test the previous swing high of the 20dma. These are at 40145 and 40595. Wave c down should eventually carry us closer to 36000

GOLD

Gold retraced 61.8% of the entire advance seen from Jul-Sep 2017. The rise was corrective in nature and therefore the retracement should not mark a major bottom. But a short term low may finally be in place. A bounce back to the averages or the previous swing high cannot be ruled out. 1297-1313, is what we are looking at on the upside before the move down resumes.

CRUDE

Crude has fallen in 5 waves from the recent high and is mostly wave a of E down. Not certainly complete yet. 49.42 and 48.15 are the next two support levels.

COPPER

Wave iv of 5 complete wave v of 5 in a final push up should test the 3.16 high. 2.97 is the support.

LEAD MCX

Lead MCX prices completed a 5 wave advance near the upper end of a rising channel. So expect a correction retracement or consolidation to follow. Upside maybe limited near term above 171.10, the high made.

ALUMINIUM MCX

Aluminium MCX took support on the 20dma at 136 and wave iii of 5 can go up to 146

ZINC MCX

Zinc completed a 5 wave advance short of the upper channel  at 221. Unless we are extending beyond that the move maybe complete and we could see a fresh correction or consolidation here on. Upside maybe limited. A retracement of the entire 5 wave advance is also not ruled out but we need to see the initial waves develop before judging the pattern. The lower end of the channel at 201 is the first support. The wave 4 low at 190 a major support.

 

Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd

Dollar Index, USDJPY & USDINR Technical Analysis

DOLLAR INDEX

The dollar index completed its first impulse wave since the bottom in Sept and at the wave IV high of the previous decline. So we are dipping in wave II down and should find support at 93 or 92.60 after which wave III up may start.

USDJPY

USDJPY completed a 5 wave advance and is pulling back in a minor wave ii. 38.2% near 111.20 is a normal pullback. 110.50 and 109.70 are the next two important retracements.

USDINR

USDINR – 3 wave correction complete in a channel the next move should be higher. Wave v up should be next and may either test the wave iii high at 65.90 or stretch as far as 66.45 before it is complete.

 

Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd

 

Trade Finance News, Updates & Trends Across The World

Banks team up with IBM in trade finance blockchain

While International Business Machines (NYSE:IBM) is not typically viewed as a tech company at the bleeding edge, blockchain is one area where Big Blue is leading the way. A recent survey of company founders, executives, managers, and IT leaders pegged IBM as the overwhelming leader, a result that bodes well for IBM’s nascent blockchain business.

Source: https://www.fool.com/investing/2017/10/05/more-banks-join-ibms-blockchain-trade-finance-proj.aspx

AfDB releases second Trade Finance in Africa survey report, “Overcoming Challenges”

The African Development Bank (AfDB) has released its second Trade Finance in Africa survey report: “Trade Finance in Africa: Overcoming Challenges”. Building on the findings of the maiden 2013 survey, this new report (covering the period 2013–2014) goes even further to gauge other aspects of bank-intermediated trade finance, such as the challenges encountered by SMEs and first time trade finance clients. The report is therefore based on the combined data from the 2013 and 2015 surveys. The report’s main findings are outlined below:

The value of bank-intermediated trade finance in Africa in 2013 and 2014 is estimated at US $430 billion and US $362 billion, respectively. Put differently, banks support about one third of total trade in Africa.

Source: http://www.worldstagegroup.com/worldstagenew/index.php?active=news&newscid=38747&catid=3

Standard Chartered wraps up new trade finance partnerships

Standard Chartered has announced a new set of partnerships with TradeIX, for the digitisation of trade finance and Infor to put supply chain information on the cloud. The bank has worked with TradeIX to roll out a new open blockchain platform for trade finance, allowing corporates a “connected and secure”

Source: https://ibsintelligence.com/standard-chartered-wraps-new-trade-finance-partnerships/

Ghana concludes USD 1.3 billion trade finance deal

Ghana’s Cocoa Board has concluded a USD 1.3 billion trade finance deal, notching up a quarter-century of such deals.

Ghana Cocoa Board  – known as Cocobod – has successfully concluded the arrangement of a USD 1.3 billion pre-export receivables backed trade finance facility, marking a quarter century of such deals since the first time of going to market in 1993.

The facility followed the instruction of a range of banks, working alongside Ghana International Bank, as initial mandated lead arranger, to carry out the trade financing. Rabobank, Crédit Agricole, Natixis, Standard Bank and Sumitomo Mitsui all acted as bookrunners.

They were joined by a group of supporting banks, such as Bank of China, Tokyo-Mitsubishi UFJ Bank, Commerzbank, the Industrial and Commercial Bank of China, Rand Merchant Bank, Société Générale, ABN AMRO, Standard Chartered Bank, Barclays Bank and others as arrangers.

Source: https://www.africanlawbusiness.com/news/7640-ghana-concludes-usd-1-3-billion-trade-finance-deal

“No one tells you that trade finance can be really fun”

Invest more in young talent: when it comes to how the trade finance industry can best tackle its gender bias, Emma Clark’s message is clear. In this, the next edition of GTR’s series about inspirational women in trade finance, Sanne Wass talks to Falcon Group’s head of business development.

For Emma Clark, if things get a little too easy, they become dull. In her professional life, she heads up Falcon Group’s global business development, a role in which she often finds herself racking up the airmiles, heading out into the world to help companies expand to new export markets. She says she loves her job, because she helps “solve problems that no one else can fix”.

Source: https://www.gtreview.com/news/global/no-one-tells-you-that-trade-finance-can-be-really-fun/

Global Trade Finance Market 2017- BNP Paribas, Citigroup, HSBC

Worldwide Trade Finance Market 2017presents a widespread and fundamental study of Trade Finance industry along with the analysis of subjective aspects which will provide key business insights to the readers. Global Trade Finance Market 2017 research report offers the analytical view of the industry by studying different factors like Trade Finance market growth, consumption volume, market trends and Trade Finance industry cost structures during the forecast period from 2017 to 2022.

Trade Finance market studies the competitive landscape view of the industry. The Trade Finance report also includes development plans and policies along with manufacturing processes. The major regions involved in Trade Finance Market are (United States, EU, China, and Japan).

Global Trade Finance Market 2017- BNP Paribas, Citigroup, HSBC

Trade Finance Market Size, Share, Trends Analysis and Growth Forecast by Product Type and Application By 2022

Trade Finance Market Report covers the present scenario and the growth prospects of the Trade Finance Industry for 2017-2022. Trade Finance Market Report contains industry overview with growth analysis and futuristic cost, revenue, demand and supply data. The research report introduce incorporates analysis of definitions, classifications, application and industry chain structure. Besides this, the Trade Finance Market report also consists of development trends and key region’s development status. The report covers the market landscape and its growth prospects over the coming years.

Trade Finance Market Size, Share, Trends Analysis and Growth Forecast by Product Type and Application By 2022

2017 Rethinking Trade & Finance

With 255 responses from banks located in 98 countries, as well as various contributions from leading experts in the field, “Rethinking Trade & Finance” is the most extensive gauge of the trends and outlook of the global trade finance industry.  It aims to provide insight and analysis to help readers formulate strategy and make decisions that will advance the evolution of global trade.

The 2017 edition comes at a transformational moment in the history of trade and the global economic system. The report has its roots at the peak of the global financial crisis, and has since earned its place as a leading publication on the subject of trade, finance and economic inclusiveness.

The Report encompasses four major sections of content linked to the pillars of the Banking Commission’s strategy. It focuses on the state of the trade finance market; trade and supply chain finance; policy, advocacy and inclusiveness around global trade; and digitisation and the state of FinTech.

2017 Rethinking Trade & Finance

Access to trade finance

Engaging in world trade holds enormous potential for business yet many companies, especially small- and medium-sized enterprises (SMEs), depend on access to banking services in order to unlock new markets. Trade finance allows companies to mitigate the risks associated with importing or exporting goods and services, permitting world trade to flow in a predictable and secure manner.

Trade finance has been a key catalyst of the expansion of international trade in the past century, and bank-intermediated transactions now represent more than a third of world trade, equal to trillions of dollars each year.

More than simply maintaining our international trading system though, trade finance is essential for the future outlook of global growth. SMEs are the backbone of the global economy, representing around 95% of the world’s companies and 60% of private sector jobs, and play a great role in promoting employment and social cohesion.

The supply or shortage of trade finance hurts SMEs the most, and thus has negative knock-on effects for economies and families across the globe.

Access to trade finance

Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Above news update and trends are sourced from internet and are purely meant for reading on the related subject and for information. Adam Smith Associate is not responsible for any of the content and nor it is meant for any commercial benefits.

 

Commodity Technical Analysis Report

CRUDE MCX

Crude prices on Mcx would be in a triangle in wave B. The triangle started to form from the second quarter of 2016. Wave E of B is the final leg down for the triangle from the upper end near 3480 to the lower end near 2790 this should be the final leg of the consolidation phase before we make it to a higher ground.

GOLD

The internal wave count of the fall for gold has now become complex and so it is best to mark it overall as W. An bounce back will be an X wave.

LEAD & ALUMINIMUM

MCX was closed yesterday so using the CFD futures. Metals are mixed up with Lead [below] and Zinc in wave v of a rise, while Nickel Copper and Aluminium [below], at near term supports and bouncing up. So if 2080$ holds then we may go higher on Aluminium, but Lead is in wave v and can turn into a correction anytime.

CRUDE

I discussed the downside risk to crude Medium term yesterday however near term if the 50.20 support [20dma] holds, and maintains the rising channel shown on this chart, maybe wave v of C up is still on the cards. The wave i high of 49.42 has not overlapped and till that happens wave v can be kept open. Wave v of C then can still make an attempt at 53$.

COPPER MCX

Copper prices are lagging but slowly moving higher. The recent fall was 7 legs and a corrective decline. So one more move to the highs is possible in wave 5 of the rise. 429-425 are supports, and 451 near the wave 3 high or 465 to the upper channel line again are open. The Bollinger band at 445 would be an interim resistance.

Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd