Traxpay which joined the International Trade and Forfaiting Association (ITFA) early 2021 has decided to engage with the wider trade finance community on trade digitization and MLETR adoption through ITFA’s Digital Negotiable Instruments (DNI) Initiative. The initiative was established by ITFA’s Fintech Committee in mid 2019.
Markus Rupprecht, CEO of Traxpay explains the membership decision: "Our Traxpay mission is to make supply chains more resilient. A core component of this is sufficient working capital. Key to that is ensuring liquidity. Many companies believe that a liquidity ratio of at least 60% is necessary to ensure going concern in times of crisis. The trend of treasury departments is moving towards liquidity management in the entire supply chain and not only in their own company. Supplier liquidity is strengthened by supply chain finance (SCF) instruments. Empirical studies show that the use of SCF instruments by as many participants as possible increases the resilience of the supply chain and leads to disproportionate improvements in earnings for all those involved in the value creation processes. ITFA’s DNI Initiative is of great importance for our mission for two main reasons: a) exchange and collaboration with partners to offer a compelling suite of value adding products and b) creating the necessary legal framework for these."
Markus Wohlgeschaffen, Head of Product at Traxpay adds: "Supply chain finance tools like Dynamic Discounting and Reverse Factoring have even gained importance in the recent years, not only due to the corona pandemic. The combination of suitable SCF instruments is the prerequisite to achieve the goal of CFOs and treasurers for a 360° liquidity optimization which is considered a comparative competitive advantage! Traxpay offers the possibility to combine various working capital/SCF solutions. As Head of Product at Traxpay, I strive to constantly develop new digital Supply Chain Finance products such as our recently launched Digital Forfaiting Tools and Digital Guarantees. ITFA's DNI initiative is of similar importance to previous industry initiatives, e.g. ICC/GSCFF's Standard Definitions for SCF Techniques or SWIFT's BPO, which I have had the privilege of contributing to as a supply chain finance practitioner over the past 37 years. I am very happy to contribute to the DNI initiative together with old friends and hopefully new ones.”
“I am delighted to welcome Traxpay to this global industry effort which is backed by the G7+ countries. Digitising trade documents such as payment guarantees, and negotiable instruments is high on the agenda of both corporates and banks. But it must be done in the most interoperable way to avoid creating additional digital islands. That’s exactly the mission of the DNI Initiative which we achieve by introducing advanced e-original technologies as per ITFA’s dDOC specifications.”, concluded André Casterman, Chair Fintech Committee, ITFA.
More Information on: https://www.traxpay.com/ueber-uns/news/itfa-member-traxpay-supports-the-dni-initiative/?lang=en
About ITFA:
The ITFA Fintech Committee now regroups a total of 49 players which are listed on ITFA’s website. The ITFA Fintech Initiatives aim to address two market-level ambitions: the DNI Initiative focuses on digitising trade documents and negotiable instruments in corporate-to-bank relationships, whilst the TFD Initiative aims to help trade originators adopt the automated originate-and-distribute model by partnering with institutional investors. ITFA’s advocacy task force (TERA) aims to promote the integration of digital options such as MLETR-based e-originals within national laws. The Model Law for Electronic Transferable Records (MLETR) aims to enable the legal use of electronic transferable records both domestically and across borders. The MLETR applies to electronic transferable records that are functionally equivalent to transferable documents or instruments. In 2021, the G7 has initiated a dialogue between experts to work to achieve compatible domestic reforms, and provide collective support to other international initiatives seeking to facilitate the adoption of electronic transferable records, with an aim of enabling commercial operators to adopt these digital solutions for the shipment of goods and trade finance.
About Traxpay:
Traxpay is a fast-growing Supply Chain Finance platform that operates globally from Europe with a multi-bank approach. With the mission to become the "360° SCF-Platform of Choice" for buyers, suppliers and banks, Traxpay enables companies to manage their working capital in a simple, secure and sustainable way using all standard Supply Chain Finance tools.
Established financial institutions such as Deutsche Bank, Nord/LB, LBBW, Raiffeisen Bank International or KfW IPEX-Bank trust Traxpay's financing solution and maintain strategic partnerships with the company. Through a new Sustainable Supply Chain Finance program, platform users can financially incentivize the sustainability of their supply chains
Markus Rupprecht, CEO of Traxpay explains the membership decision: "Our Traxpay mission is to make supply chains more resilient. A core component of this is sufficient working capital. Key to that is ensuring liquidity. Many companies believe that a liquidity ratio of at least 60% is necessary to ensure going concern in times of crisis. The trend of treasury departments is moving towards liquidity management in the entire supply chain and not only in their own company. Supplier liquidity is strengthened by supply chain finance (SCF) instruments. Empirical studies show that the use of SCF instruments by as many participants as possible increases the resilience of the supply chain and leads to disproportionate improvements in earnings for all those involved in the value creation processes. ITFA’s DNI Initiative is of great importance for our mission for two main reasons: a) exchange and collaboration with partners to offer a compelling suite of value adding products and b) creating the necessary legal framework for these."
Markus Wohlgeschaffen, Head of Product at Traxpay adds: "Supply chain finance tools like Dynamic Discounting and Reverse Factoring have even gained importance in the recent years, not only due to the corona pandemic. The combination of suitable SCF instruments is the prerequisite to achieve the goal of CFOs and treasurers for a 360° liquidity optimization which is considered a comparative competitive advantage! Traxpay offers the possibility to combine various working capital/SCF solutions. As Head of Product at Traxpay, I strive to constantly develop new digital Supply Chain Finance products such as our recently launched Digital Forfaiting Tools and Digital Guarantees. ITFA's DNI initiative is of similar importance to previous industry initiatives, e.g. ICC/GSCFF's Standard Definitions for SCF Techniques or SWIFT's BPO, which I have had the privilege of contributing to as a supply chain finance practitioner over the past 37 years. I am very happy to contribute to the DNI initiative together with old friends and hopefully new ones.”
“I am delighted to welcome Traxpay to this global industry effort which is backed by the G7+ countries. Digitising trade documents such as payment guarantees, and negotiable instruments is high on the agenda of both corporates and banks. But it must be done in the most interoperable way to avoid creating additional digital islands. That’s exactly the mission of the DNI Initiative which we achieve by introducing advanced e-original technologies as per ITFA’s dDOC specifications.”, concluded André Casterman, Chair Fintech Committee, ITFA.
More Information on: https://www.traxpay.com/ueber-uns/news/itfa-member-traxpay-supports-the-dni-initiative/?lang=en
About ITFA:
The ITFA Fintech Committee now regroups a total of 49 players which are listed on ITFA’s website. The ITFA Fintech Initiatives aim to address two market-level ambitions: the DNI Initiative focuses on digitising trade documents and negotiable instruments in corporate-to-bank relationships, whilst the TFD Initiative aims to help trade originators adopt the automated originate-and-distribute model by partnering with institutional investors. ITFA’s advocacy task force (TERA) aims to promote the integration of digital options such as MLETR-based e-originals within national laws. The Model Law for Electronic Transferable Records (MLETR) aims to enable the legal use of electronic transferable records both domestically and across borders. The MLETR applies to electronic transferable records that are functionally equivalent to transferable documents or instruments. In 2021, the G7 has initiated a dialogue between experts to work to achieve compatible domestic reforms, and provide collective support to other international initiatives seeking to facilitate the adoption of electronic transferable records, with an aim of enabling commercial operators to adopt these digital solutions for the shipment of goods and trade finance.
About Traxpay:
Traxpay is a fast-growing Supply Chain Finance platform that operates globally from Europe with a multi-bank approach. With the mission to become the "360° SCF-Platform of Choice" for buyers, suppliers and banks, Traxpay enables companies to manage their working capital in a simple, secure and sustainable way using all standard Supply Chain Finance tools.
Established financial institutions such as Deutsche Bank, Nord/LB, LBBW, Raiffeisen Bank International or KfW IPEX-Bank trust Traxpay's financing solution and maintain strategic partnerships with the company. Through a new Sustainable Supply Chain Finance program, platform users can financially incentivize the sustainability of their supply chains
