The Covid-19 pandemic has had a significant impact on the structure, roles and priorities within treasury organisations. As part of finance transformation efforts, centralisation structures help simplify both business and treasury functions and, thereby, maintain competitiveness in the current market environment.
KPMG and J.P. Morgan have co-authored this report on the challenges and benefits that centralized trading centers (CTCs) offer to multinational corporates, providing key considerations for companies when setting up CTCs in Europe.
To realize the benefits of a CTC structure, an appropriate and tax-efficient location needs to be considered, as well as business requirements and priorities, regulatory framework, tech/digital readiness, governance, and access to talent and partners.
Europe has been an attractive location to set up centralized trading centers due to its access to a large pool of talent, capital markets, stable economic infrastructure and regulatory environment. London, Zurich, Amsterdam and Luxembourg have emerged as the top locations for establishing CTCs.