BofA Merrill GTS Participates in Shanghai FTZ USD Pilot Program


TRW Automotive Mandates BofA Merrill for USD Cross-border Cash Management Solution in the Shanghai FTZ. 

SHANGHAI – Bank of America Merrill Lynch Global Transaction Services (GTS) today began its participation in the Shanghai Free Trade Zone (FTZ) USD cash management pilot program with U.S.-based TRW Automotive (TRW) mandating the firm for a comprehensive treasury management solution.

At a ceremony today in Shanghai, BofA Merrill and TRW were joined by senior officials from the Shanghai FTZ, the State Administration of Foreign Exchange (SAFE) and the People’s Bank of China (PBOC) to sign a memorandum of understanding signifying participation in the pilot program and to enter a Foreign Currency Cross-Border Cash Management Services agreement to facilitate the implementation of USD cross-border sweeping structures. 

As a participant in the Shanghai FTZ USD cross-border sweeping pilot program, BofA Merrill can help address the working capital requirements of companies in China in need of USD payments and collections centralization and netting arrangements. Regulations also stipulate that companies that participate in the program must be profitable, demonstrate a sound internal control procedure and accounting system, and have had zero FX violation records in the past three years. 

“The Shanghai FTZ has rapidly evolved in scope and sophistication and will continue to influence the treasury management decisions at leading corporations with a China presence. By participating in the USD cross-border sweeping program, our solution flexibility, client consultancy and demonstrated track record of execution position us at a competitive advantage to service the treasury needs of TRW and other entities operating in the Shanghai FTZ,” saidCathy Dou, head of Global Transaction Services, China at BofA Merrill.

“In addition to the USD cross-border sweeping program, we have deep experience at the forefront of China’s regulatory liberalization, facilitating client participation in numerous RMB cross border schemes, including the latest RMB opportunities in the FTZ and arranging significant cross-border RMB activity as clients re-denominate their capital, funding and trade transactions,” added Dou.

Based in Michigan, TRW is one of the world’s largest automotive suppliers, based, with an established presence in China. For TRW, BofA Merrill will provide a tailored cross-border USD cash management solution that allows two-way sweeping of surplus funds between the header account in the FTZ and other entities globally and streamlined processes for settlement and FX. The solution also provides TRW payments and collection centralization advantages to improve efficiency and save on costs. 

Benefits to TRW include enhanced funding management efficiency by utilizing onshore surplus cash outside China, improved FX exposures onshore and offshore and a reduction in treasury processing costs. The solution is supported by BofA Merrill’s Global Liquidity Platform, which provides TRW global and consistent operational support for their liquidity structures in the Shanghai FTZ.

“The Shanghai FTZ opens up broad opportunities for TRW to further maximize its working capital management and risk management. The new platform will provide synergies for TRW regionally and globally,” saidJane Hua, Asia Pacific treasurer for TRW. “We’re proud to partner with Bank of America Merrill Lynch on this key initiative within the landmark Shanghai FTZ project and appreciate their guidance and support for our treasury initiatives.”

Bank of America Merrill Lynch has invested heavily in its GTS platform in China in recent years. In 2013, the firm announced an alliance with China UnionPay (CUP) through which clients can access a unique collection solution of nationwide cross-bank direct debit services capable of improving account receivables management.The bank was also the first in China to accept electronic FCY payments and supporting documents, thereby improving processing efficiency for clients. Furthermore, the firm continues to build out its market-leading liquidity management solutions through its Global Liquidity Platform, which is also complemented by the CashPro Accelerate solution ®, the bank’s cash forecasting tool, in China.

The firm has been active in China since 1972, and the GTS platform provides clients in this strategic market with an evolving suite of working capital solutions, including liquidity management, payments and receipts, trade and supply chain finance, and foreign exchange serving corporations, financial institution and public sector entities.

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,...


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...


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...


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...


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 ...


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...


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,...


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...


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....


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...