Bank of America Merrill Lynch launches Liquidity Express

Published 

LONDON – Bank of America Merrill Lynch (BofA Merrill) today announced the launch of Liquidity Express, a new Virtual Account Management (VAM)-based solution which offers an alternative to notional pooling and physical cash concentration. Liquidity Express allows clients to consolidate funds from multiple accounts into a single balance position and categorise and report these transfers using a virtual account arrangement. This ‘all-in-one’ tool combines the bank’s VAM, Global Liquidity Platform (GLP) and CashPro Assistant Analytics & Forecasting capabilities into a new liquidity package, which will simplify client account structures, saving time and money.

Through Liquidity Express, clients with less complex liquidity needs and leaner treasury organisations will be able to categorise and report fund transfers to a single physical bank account using VAM. This reduces the need to open and maintain multiple accounts. As the balance positions are reported as aggregated within the virtual account structure, there is no need for a separate cash concentration arrangement, and the credit utilisation is naturally reduced.

Where separate physical accounts need to be maintained for operational, tax or regulatory reasons, the GLP sweep capabilities can automate the physical transfer of funds and at the same time track and reconcile fund movements.

The client benefits of Liquidity Express include:

  • Simplicity: A practical and simple alternative to physical cash concentration and notional pooling – with reduced documentation, credit, tax and accounting complexities.
  • Cost efficiency: Lower running costs due to reduced number of physical accounts and sweeps.
  • Flexibility: Ability to add new virtual accounts via the portal.

Mark Smith, global head of Liquidity Management for Global Transaction Services (GTS) at BofA Merrill said, “We’re proud to launch Liquidity Express. It’s ideal for clients who may not be eligible for traditional notional pooling products, have less complex needs and require a solution that is quick and straightforward to implement.”

Liquidity Express is currently available to clients for US dollar, euro and pound sterling accounts held in UK and Ireland.

Henrik Lang, head of Liquidity for GTS EMEA at BofA Merrill, said, “Physical cash concentration and notional pooling have traditionally been the only liquidity tools available for clients to offset long and short balances positions – Liquidity Express offers a flexible yet practical alternative by using VAM to categorise and report fund transfers to a single physical bank account.

“For clients with simple needs, it can work as a stand-alone concentration tool; for clients with more complex needs, it could be useful as a complementary solution to their broader liquidity structure.”

 

Please note: All transactions reconcile funds with the physical account. Virtual accounts hold no funds; they only categorize and report transactions of the physical account. Please see general disclaimer for Bank of America Merrill Lynch at www.bofaml.com/disclaimer.

 

Most recent episodes

40th Annual New York Cash Exchange: What Can Treasurers Expect?

Ahead of the 40th annual New York Cash Exchange, two of TMANY’s distinguished board members, David Miller and Timothy T. Hesler, CTP, provide TMI CEO, Robin Page, with a quickfire rundown of what attendees can expect from this year’s conference. Our guests share their aspirations for the event,...

00:00

Expectation-Beating Inflation Prints Ratchet Up Pressure on Monetary Policy

Welcome to the third edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 9th May...

04:48

Making the Sustainable Transition: A Roadmap to ESG in Treasury

Over the last 18 months, Societe Generale has experienced a steady increase in requests from their corporate clients to integrate ESG features in treasury management.  Louis-David Rouyer, Philippe Pougeard, and Emmanuelle Petelle (Societe Generale) provide TMI’s Eleanor Hill with a whistlestop run...

22:24

Lift Off for Fed Rate Rises

Welcome to the latest edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 5th of...

04:58

Treasury in 2022 and Beyond

Industry experts Bob Stark (Kyriba) and Sebastian di Paola (PwC) join TMI’s Editor, Eleanor Hill, to explore the very latest treasury trends – and to discuss how smart treasurers can get ahead of the game by ...

43:21

How BearingPoint Harnessed Data-Driven Forecasting with CashAnalytics and SAP

Listen back to our recent forecasting masterclass, where Group Treasurer Eveline Stam, and Conor Deegan (CashAnalytics) provided TMI’s Eleanor Hill with a comprehensive overview of how consultancy firm BearingPoint achieved company-wide cash forecasting nirvana by combining specialist solutions from...

37:14

The 3 T’s of The Future: Tech, Treasury, and Transformation

Over the past two years, an increasingly dynamic environment has not only accelerated technology development – from quantum computing to blockchain technology, and even the metaverse – but also technology adoption, bridging colleagues and breaking down silos in a remote work world. In this podcast,...

44:02

Monetary Policy Continues to Drive Markets as Ukraine Invasion Weighs on March Meetings

Welcome to the second edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 3rd of...

05:25

Tax Spotlight: How the OECD’s Two-Pillar Solution Impacts Treasury

Aaron Lee and Joseph Lee (DBS Bank) join TMI’s Eleanor Hill to discuss how the OECD’s Two-Pillar Solution aims to address the tax challenges arising from the digitalisation of the economy. Ahead of the 2023 implementation date multinational corporates will have much to consider around these reforms....

24:00

FX Connections: Bringing Transparency to Cross-Currency Payments

Cross-border activity is growing at a remarkable rate, making FX payments a hot topic for treasurers across the globe.  In this TreasuryCast episode, Eleanor Hill asks Daniela Eder and Gibran Maqsood (Barclays Corporate Banking) to provide their key action points around FX payments in 2022. Our guests...

21:00