EACT SUMMIT 18

20 THE EACT SUMMIT BRUSSELS 2018 The applications and future use by treasurers of new technologies, especially distributed ledger technology (DLT) and blockchain, are also major topics of discussion. The World Café discussed trade finance as an example of an area where DLT could be used to simplify and facilitate processes. The group noted that there is an increasing complexity of sanctions and anti- money laundering regulations that impose growing burdens on banks and businesses, which has huge impact on every- day treasury work and procedures. DLT has the potential to make the transmission and reconciliation of trade finance documentation easier. Corporate governance and enhancing the relationships between treasury and the board are also seen as key areas in the future development of the treasurer. It is increasingly important that treasurers ‘sit at the same table’ as business in order for them to gain an understanding of all the interests of a company's stakeholders: shareholders, management, customers, suppliers, financiers and governance. The corporate governance should pay special attention to good relationships with the stakeholders of a company and also consider the role of those who are involved in or profit from the company's long- term growth – including treasurers - as recognised and trusted partners. Lastly, the participants considered the possible impacts that the planned replacement of IBORs (Interbank Offered Rates) such as LIBOR and EURIBOR, could have on treasurers. The Financial Conduct Authority has decided no longer to require banks to submit LIBOR benchmark data, and this makes it very possible that LIBOR will not be available after 2021. Individual countries are developing interest rate benchmarks for their own currencies. Some of these, e.g. the UK's SONIA rate, are currently overnight or very short tenor rates, and it's uncertain how they will be adapted for longer tenors. It is a complex question, and all decision-maki bodies realise that replacing LIBOR requires joint efforts by regulators and market participants in each currency submarket. Alternative rates need to be usable by all market participants, including corporate entities. In order to be able to face future challenges, it was emphasised that treasurers should closely follow developments not only in their own business but also more widely, and that it is key for treasurers not to be involved only in treasury matters but to engage more broadly with the business of the companies in which they work. Corporate governance and enhancing the relationships between treasury and the board are also seenas key areas in the future development of the treasurer.